Does your company conduct any of the activities that fall under the Securities and Futures Act regulations? If you, then it is mandatory to have a Capital Markets Services (CMS) License. Equally important, representatives' appointments to individuals are also necessary to represent the exempt financial institutions or the CMS licensees.
Compliance is key when conducting business. That’s why this license application is necessary if your company will be conducting activities regulated under the Securities and Futures Act. For the people acting on behalf of the exempt CMS entities such as banking institutions or CMS licensees, their appointments as representatives are necessary. Some examples of activities regulated under the Securities and Future Act include:
The capital requirements depend on the type of CMS license holder applying for it. These are some indicative requirement of the various CMS license holders (Actual requirement may vary on scope and type of license)
Expect to pay two kinds of annual fees. One is for the CMS license, whereas the other is for the appointed representatives. All the regulated activities you conduct are put into consideration, and their total becomes your annual fee. Let’s take a look at the various types of regulated activities and their respective annual fee.
MAS requires at most four to six months to assess whether your company meets the required criteria. However, that is only applicable if the business has a straightforward model, the applicants meet all the requirements, and the application is both clear and complete. On the other hand, if your case is complex or the submitted information is inaccurate or incomplete, the review may take more time.
As mentioned above, the CMS License is the highest-level licensing for the various regulated activities in Singapore fund management entity. Therefore, there are several application requirements that you must meet before MAS approves your license.
It is no secret that submitting the correct information means becoming a CMS license holder in a short period. On the other hand, sending incomplete and inaccurate information could see you long wait. For that reason, you may want to consider looking for a professional to get the job done well, completely and accurately. That’s where we come in by offering you the best CMS license application services. Thanks to our experienced experts, you get your application done within no time without having to do much.
The CMS license is required for any company that provides capital market services, such as fund management, financial advisory, and dealing in securities or futures contracts in Singapore. The CMS license application process is outlined below:
After the license is issued, the company must comply with the MAS’s requirements. This includes ongoing reporting and periodic inspections to ensure continued compliance.
Research and understand the CMS license application process and seek professional advice when necessary.
In Singapore, MAS conducts periodic inspections to ensure compliance with regulatory requirements. MAS may also engage external auditors to conduct audits of financial institutions to assess their compliance.
A company that wishes to establish credibility and trust with its customers should ensure consistent MAS compliance throughout its lifetime. This will help avoid business interruptions that are detrimental to its reputation.
If your company falls under these groups, you need to be a CMS license holder.
Upon submitting your CMS license application, these are the admission criteria to be considered..
To apply for a CMS license, you will have to pay an application fee amounting to $1,000 that's non-refundable.
Regarding how to pay it, expect an email with those details, advice on the fee, and instructions about the amount to pay.
Once these events occur, the CMS ceases being valid:
Under such circumstances, there is a need to notify MAS regarding that usually submitted as the commencement of business as an exempt financial adviser. You need to submit Form 26, which falls under the Financial Advisers Regulations. Another requirement is the appointment of individuals as representatives. These people will be offering financial advisory services on behalf of the CMS licensee. The FAA guides the financial advisory representatives and the exempt financial advisor regarding their compliance.