the Two hedge funds are now under new, licensed, management
The Monetary Authority of Singapore (MAS) has lifted its suspension of recognition of two hedge funds previously managed by Charles Schmitt and Associates.
The CSA Absolute Return (Dublin) and CSA Absolute Return Plus funds were suspended by MAS on 18 June 2004 after the Hong Kong Securities and Futures Commission prohibited Charles Schmitt and Associates, the manager of the two funds, from carrying out fund management, investment advisory and corporate finance activities from 15 June 2004.
The Hong Kong Securities and Futures Commission was concerned that client assets "might have been misappropriated from the CSA Absolute Return fund." It suspended the fund along with the CSA Absolute Return (Dublin) and CSA Absolute Return Plus funds, with the latter two authorised to be sold to sophisticated investors in Singapore. MAS said the CSA Absolute Return fund, which was not authorised by the Hong Kong Securities and Futures Commission, has subsequently been placed under provisional liquidation.
MAS has decided to lift its suspension after the management of the two funds was changed to Oria Capital, which is licensed by the Hong Kong Securities and Futures Commission. The two funds have subsequently been renamed the Oria Market Neutral Fund and the Oria Plus Fund. MAS added that accountants Grant Thornton and Moore Stephens International had carried out "limited reviews" of the funds and "found no irregularities."
In June, the Hong Kong Securities and Futures Commission said that Schmitt "was not able to provide satisfactory answers regarding transfers of client monies into bank accounts with which he is connected."
It added: "There is suspicion that client assets might have been misappropriated from the CSA Absolute Return Fund on behalf of Charles Schmitt and Associates. We therefore believe that clients' property has been dealt with in a manner prejudicial to the interests of the clients and considers that it is desirable in the interest of the investing public to issue a restriction notice."
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