Pine Capital Group said on Thursday it was suspending trade in its shares after receiving “numerous allegations” about its sole operating subsidiary, Advance Capital Partners Asset Management (ACPAM), including over potential conflict of interest and possible lapses in internal control.
In addition, ACPAM received notice on Tuesday of a termination of its management agreement with Advance Opportunities Fund I (AOF I), it said in a filing to SGX after the market close on Thursday.
“The board has been looking into the allegations and needs time to gather the relevant information and take the necessary action subject to appropriate advice,” the filing said.
“The board is of the view that there is no clarity on the state of affairs of the company as at the date of this announcement and is unable to ascertain that all material information pertaining to the company and its subsidiaries, and their operation have been announced and disclosed,” it added.
In consultation with SGX, the board will appoint an independent reviewer to investigate the allegations received since January, the filing said.
Further details on the allegations and on ACPAM will be released “in due course,” Pine Capital said.
On Tuesday, Pine Capital said two independent directors stepped down, effective Monday, because they were “unable to obtain sufficient information in a timely manner to discharge fiduciary responsibilities.”
In early March, Tan Choon Wee resigned as interim CEO and executive chairman, ahead of an attempt to oust him from the asset management group.