CMS license for Corporate Finance in Singapore
A stable financial system plays a pivotal role in maintaining a stable economy in any country. Therefore, a financial regulatory framework is equally important to ensure transparency and security in protecting the customers’ interest. Financial rules govern how corporate finances do business and its policies to ensure customers are safe from risks and fraud.
Singapore is among the leading financial hubs since it offers high-quality financial services for corporate and individual clients. However, to become part of Singapore’s financial sector, you need the necessary licenses to operate in the country. As a result, startups often have questions about CMS license for corporate finances and some things to consider. Worry no more since this article explains all the things you need to know about the CMS license.
What is a Capital Market Service License?
The CMS license is a permit given by the Monetary Authority of Singapore to Fund Management Companies after meeting all the requirements. It grants permission to corporate to trade in the finance sector.
Who is required to apply for a CMS License?
You may be a newbie in the Singapore financial sector and may be wondering about the CMS license and who are required to apply for this permit. Singapore’s law requires that every firm interested in the financial sector registers for the CMS license. Various requirements are depending if a financial corporation is a registered Financial Fund Manager or a licensed Financial Fund Manager. Note that to work legitimately in Singapore, a corporate finance firm must have the CMS license.
What are MAS requirements before approving for a CMS license?
The Monetary Authority of Singapore is in charge of issuing the CMS license after checking in a firm that meets all the set standards. It checks some features, including:
- Fitness of the Corporate Finance including their management team
- The expertise of the firm and its reputation
- The ability to meet the essential capital requiremhttps://www.facebook.com/rtcompliancesingaporeents under the Securities Future Act
- Risk management strategies and the Compliance settings
- The firm’s plans and some of the policies put in place in governing the financial institution
Also, it is essential to ensure that your staff’ matches some of the requirements, including:
- At least two directors where at least one of them is a Singapore resident
- The Finance corporate needs a chief executive officer with a minimum of ten years of experience in the finance sector and who resides in Singapore
- A firm must have at least two full-time employees who both live in the country
How much time do you need to wait before the CMS is approved?
Many people often worry about the time the CMS license takes for revision by MAS. Note that this regulatory body usually takes a maximum of four months to get a response. However, some applicants may miss out on some documents, or the process is a bit complex hence taking a bit more time to review the application.
The CMS license is a necessary permit that every corporate finance firm in Singapore must acquire. Through this license, the MAS can evaluate the services you offer to the customer, including their securities and interests.