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Capital Markets Services (CMS) License

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.

Why you need CMS license?

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:

  • Deals involving capital market products
  • Advising on corporate finance
  • Managing real estate investment trust
  • Managing funds
  • Provision of credit rating services
  • Provision of custodial services for securities
  • Financing products

Why are the financial requirement for CMS license?

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)

  • Broker-dealer: The minimum capital requirement can be a figure between S$50,000 and S$5 million.
  • SCF operator: The minimum capital requirement can be a figure between S$50,000 and S$5 million.
  • Corporate Finance Advisor: In this case, the base capital requirement set is S$250,000.
  • Credit rating agency: The only financial requirement, in this case, is a base capital requirement of S$250,000.
  • REIT Manager: As for the case of a REIT manager, S$1 million is the base capital requirement. Additionally, the REIT manager needs to maintain financial resources exceeding the total risk requirements. 

Why are annual fees requirement for CMS 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.

  • Dealings concerning capital market products: The annual fee, in this case, is a range, $2000 to $8000. The exact figure depends on several things. Which capital market does the CMS offer? Is the CMS licensee a member of any clearinghouse or exchange? An excellent example is a broker-dealer dealing in securities but isn’t a Singapore Exchange Securities Trading Limited member. Under such circumstances, the annual fee payable stands at S$4,000. In addition to the fixed annual fee, there is a variable annual fee of $5 for every representative after the 100th one up to the last one at every beginning of the year, 1st January to be precise
  • Others: They include advising on corporate finance, product financing, providing custodial services, REIT management and provision of credit rating services. The annual fee payable is S$4,000. In addition to the fixed annual fee, there is a variable annual fee of $5 for every representative after the 100th one up to the last one at every beginning of the year, 1st January to be precise.

Why are total processing time  for CMS license?

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.

What are CMS Application Requirements?

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.

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Fitness and reputation of the applicants

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Track record and management experience of the Company and Parent company and its shareholders

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Ability to meet the minimum financial requirements prescribed under the SFA.

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Quality of internal risk management and compliance systems of the applicant and company

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Business model/ plans and projections

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Local Director and CEO Requirement

Why you need expert in CMS license application ?

  • The way you apply depends on whether you are already a holder or want to become one. It is important to note that the application is following the Securities and Futures (Licensing and Conduct of Business) Regulations (SF (LCB)R) which has many requirements and conditions pre and post CMS license approval.
  • 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.

Need Free Consulation

We are team of experts in MAS license application, compliances and financial services experience experts who are ready to help you and guide you whenever you need any help. Free free to get in touch with us for any queries and questions

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Application Process

How we can assist in CMS License application process

Analyzing Application requirements

We will analyze the business and documents and suggest the requirements and documents required for the CMS license requirements you may need for smooth setup or running in Singapore

MAS License Application

Our experts will help you to prepare the forms and documents requirements and help you to file the form so that you approval quickly without any issues.

Assist in MAS Queries

Once we file forms with MAS, it will send you queries and request for further information related with application., We will assist you with replying these queries so that you can get the license as soon as possible.

What is the CMS License Application Process?

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:

  • Decide which financial service you want to offer : Before applying for CMS, a company must decide the financial service (s) they want to engage in, because the license will cover only the mentioned activities. A care decision has thus to be made at the beginning.
  • Prepare the application documents : The company must prepare the necessary documents, including the application form, business plan, financial projections, compliance manual, and other relevant information.
  • Submit the application : The applications should be submitted through the MAS’ electronic licensing system.
  • Review : The MAS will review the application. One of the things they might also do is conduct on-site inspections and interviews with key personnel to assess the company’s compliance and risk management processes.
  • Approval or Rejection : The application can be approved or rejected. Should the application be rejected, the company will be given a reason for the rejection and may have the opportunity to appeal the decision.

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.

Who Conducts the Periodic Inspections?

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.


FAQS on Singapore CMS Application Services

If your company falls under these groups, you need to be a CMS license holder.

  • • Security-based crowdfunding operators (SCF)
  • • Fund managers
  • • Real Estate Investment Trust managers (REIT)
  • • Credit rating agencies
  • • Corporate Financial Advisors
  • • Broker-dealers

Upon submitting your CMS license application, these are the admission criteria to be considered..

  • • Both the fitness and propriety or various parties, including shareholders, applicants, and directors (SCF)
  • • Whether the company can meet the minimum financial requirements according to the SFA guidelines
  • • Business models and projections of the business regarding associated risks
  • • How strong its compliance and internal risk management systems are
  • • The managerial skills and track record of the particular applicant as well as its major shareholders or the parent company

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:

  • • If the CMS licensee no longer offers any of the regulated activities licensed under it and in this case, MAS cancels it.
  • • MAS can also revoke the license
  • • The license can also lapse, which is well explained in section 95 of the SFA

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.

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