The digital investment advisory platform must manage customers separately from its own assets. Client's assets must be independently custodianized by a custodian authorized and regulated by the authorities and must be kept intact and cannot be used for the repayment of the platform's own debts.

The Monetary Authority of Singapore issued the above statement on Wednesday (March 12) in response to Chocolate Finance's recent “bill run”.

The HKMA said it noticed that Chocolate Finance and fund distribution platform Allfunds issued a statement confirming compliance with these regulatory requirements. The authorities will continue to communicate with the company to ensure that all customer withdrawals are carried out in an orderly manner.

Chocolate Finance and Allfunds issued a statement earlier Wednesday saying that the client's investment funds are safe and withdrawal processing is in progress in an orderly manner.

The statement stated that all client investment funds are deposited in the company's independent isolation account from Allfunds and are managed in accordance with local regulatory and trust regulations to ensure that funds are fully protected.

Further reading

Chocolate Finance “squeezes” The HKMA asks about its instant withdrawal statement

Chocolate Finance

[Speed ​​Reading Package]Learn about Chocolate Finance's “squeezing” in one article?

[Speed ​​Reading Package]Learn about Chocolate Finance's

David Pérez de Albéniz, President of Allfunds Singapore, said: “Our custody system in Singapore ensures that all investment funds are stored independently and are not affected by other financial risks. A strong custody framework ensures that clients' investment funds are safe and operate in accordance with standard redemption procedures.”

Allfunds is registered in Spain and holds a capital market service license issued by the Monetary Authority of Singapore. It is allowed to engage in capital market product trading, collective investment plan management and custody services.

Withdrawal card transactions are restored but limited amount cannot be used for stored value digital wallets

After suspending instant withdrawals, Chocolate Finance said the waiting time for customers to withdraw money has been reduced to three to six working days, rather than the maximum 10 days previously announced. At the same time, the company resumed withdrawal card transactions, but set a limit of 250 yuan per transaction.

In response to the enquiry by Lianhe Zaobao, the company also confirmed that a series of transactions including stored value of digital wallets and purchase of prepaid cards will not be carried out.

Chocolate Finance suspended instant withdrawals on Monday (10th) due to excessive demand. Company founder Walter de Oude later explained that the withdrawal problem stems from some customers' abuse of their mileage reward systems.

Chocolate Finance is an intelligent investment advisory service provided by Chocfin, which holds a Capital Markets Services (CMS) license. Since it is not a bank, customer deposits are not covered by Singapore Deposit Insurance Corporation (SDIC).

The HKMA previously pointed out that Chocolate Finance has clarified the timeline for redemption of funds. The authorities also directed the company to ensure that all redemption requirements are met in an orderly manner and to promptly inform customers about the latest developments.