Singapore’s Chocolate Finance Engaging With MAS on Customer Withdrawal Issues

(Bloomberg) — Singapore’s financial regulator said it is engaging with an online robo-advisor operated by Chocfin Pte. and independent fund custodian Allfunds to ensure all customer withdrawals will be met in an “orderly fashion.”

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Both companies confirmed that they fully complied with rules including holding customers’ funds in independent custody by licensed firms, the Monetary Authority of Singapore said Wednesday in a statement.

“Customer investment funds’ holdings are completely segregated and ringfenced,” David Perez de Albeniz, CEO at Allfunds Singapore, said in a joint statement with Chocolate Finance.

Chocolate Finance earlier this week suspended instant withdrawal services following a demand surge after it launched a partnership for its debit card. The robo-advisor had almost S$1 billion ($750 million) in assets under management and about 60,000 customers in February, according to its website.

Chocolate Finance, whose backers include Peak XV Partners and Prosus, is offering yields of 3.3% for the first S$20,000 and 4.6% on the first $20,000.

“We assure customers that their funds are secure and withdrawals are proceeding as scheduled,” Chocolate Finance Chief Executive Officer and founder Walter de Oude said in the statement.

Customers can expect to receive their funds within three to six business days, de Oude added. He founded insurance company Singlife in 2014 and was formerly CEO of HSBC Insurance (Singapore), according to his LinkedIn profile.

(Updates with company comment from third paragraph.)