English

MSWG’S QUICK TAKE ON ONGOING CORPORATE DEVELOPMENTS

CHINA AUTOMOBILE PARTS HOLDINGS LIMITED (“CAP”)

The Board of Directors of CAP provided the following information in the announcement regarding the delay in releasing the Company’s Annual Report:-

The company’s auditor, PKF has requested to carry out certain procedures that include the verification of the company’s value added tax devices with the relevant tax authorities’ system directly and completing the verification of the consignment notes/appropriate delivery documentation against the sales invoices. The tax system in Fujian Province, China underwent three major upgrades and reforms within a year and this may have resulted in certain tax information being inaccurate. In order to meet PKF’s request, the person in charge of the company is in the midst of liaising with the tax department, so that the auditor can clarify directly with the tax department, where necessary.

12 May 2017

VOICE OF MSWG

NEW LICENCE FOR DIGITAL INVESTMENT MANAGEMENT SERVICES

With effect from 9 May 2017, fund management companies offering automated discretionary portfolio management services will have to apply from the Securities Commission (SC) for a licence to operate. A new digital framework introduced by the SC sets out the licensing requirements and rules of conduct. Among the requirements are requisite technology capabilities, risk management and cyber security resilience and appropriate management strategy & policies.

It is hoped that this will result in increasing the cost-efficiency of the fund-management and thus benefiting investors. With lower cost complemented by “risk-aversion”, private unit trusts may be a viable alternative.