The jurisdiction's regulator is looking at the situation facing the robo-advisor firm following a surge in client redemptions.

Singapore’s financial regulator said yesterday that it is engaging with Chocolate Finance, a robo-advisory firm licenced in the city-state, after the firm was hit by a surge of client liquidation requests. The business halted instant withdrawals.

Media reports said the requests were prompted by frustrated users of Chocolate Finance’s debit cards. The startup was founded in 2024.

The Monetary Authority of Singapore said: “Digital advisors are required to segregate customer assets from their own. In particular, customers’ assets and monies must be held in independent custody by custodians licensed and regulated by MAS.”

“Customer monies must remain intact and cannot be used to meet the liabilities of the digital advisor at all times. MAS notes the confirmation provided by both Chocolate Finance and Allfunds that these requirements have been fully met. MAS continues to engage Chocolate Finance to ensure that all customer withdrawals will be met in an orderly fashion.” 

Allfunds, the B2B funds and distribution platform, is a licensed custodian for Chocolate Finance. 

“Customer investment funds´ holdings are completely segregated and ringfenced, as required by Singapore’s regulations, which means that the safety of investment fund holdings is assured,” David Pérez de Albéniz, CEO at Allfunds Singapore, said. “Our robust custodian framework ensures that all investments remain protected and accessible to Chocolate in accordance with standard redemption processes.” 

“Customers who have submitted withdrawal requests can expect to receive their monies within three to six business days from when they requested withdrawal, in accordance with normal investment fund redemption cycles,” Allfunds and Chocolate Finance said.

“Chocolate is committed to providing a secure and transparent experience for our customers,” said Walter de Oude (pictured below), CEO and founder of the firm, said. “While we have seen a spike in withdrawals, all are being processed in an orderly manner. We assure customers that their funds are secure, and withdrawals are proceeding as scheduled.”

Walter de Oude

The firm puts clients’ money in a portfolio of fixed-income funds to earn those target returns. By February, Chocolate Finance had almost S$1 billion in assets under management and more than 60,000 customers, according to its website. 

De Oude previously established Singlife, the insurer, a decade ago. He no longer retains any interests with the brand and stepped down from all executive and non-executive roles at that firm. He no longer retains an interest in that business, a spokesperson for Singlife told this publication.

On its homepage, Chocolate Finance says: “With Chocolate Finance, you get happy returns. Enjoy 3.3 per cent per annum on your first S$20k, 3 per cent pa on your next S$30k and a target 3 per cent pa on any amount above that. Are you smiling yet?”

It is backed by organisations such as Peak Partners, Prosus, GFC, and Saison Capital. Investment partners include UOB Asset Management, Fullerton Fund Management, Dimensional, Nikko Asset Management, and Lion Global Investors. The firm reportedly had almost S$1 billion (about $750 million) in AuM.