The Monetary Authority of Singapore (MAS) has implemented an enhanced regulatory regime for fund management companies (FMCs).
Amendments have been made to the Securities and Futures (Licensing and Conduct of Business) Regulations, Securities and Futures (Financial and Margin Requirements) Regulations and Financial Advisers Regulations.
Under the enhanced regulatory regime, all FMCs will have to meet enhanced business conduct and capital requirements. These include rules requiring independent custody and valuation of investor assets, as well as requirements for FMCs to undergo independent annual audits by external auditors and having an adequate risk management framework commensurate with the type and size of investments managed by the FMCs.
A new category of Registered Fund Management Companies (RFMC) will replace the current Exempt Fund Manager (EFM) regime. RFMCs may serve up to 30 Qualified Investors and manage up to SGD250m in assets under management. All other FMCs will have to apply for a license.
To facilitate a smooth transition for EFMs and FMCs to apply for a license or to register with MAS, MAS has put in place the following measures:
• Current EFMs will have six months to apply for a licence or to register with MAS under the new RFMC regime.
• FMCs can submit their licence applications or register online via the Corporate e-Lodgment system. This new online system will also allow FMCs to submit their regulatory returns.
• FMCs can refer to a set of guidelines and FAQs for a better understanding of the requirements relating to application criteria and business conduct.