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To start a business in Singapore, consider obtaining a license from the Monetary Authority of Singapore (MAS). However, certain businesses may be exempt from obtaining a financial advisor’s license, thanks to the Exempt Corporate Advisory License scheme. The Exempt Corporate Advisory License scheme allows certain companies to provide corporate advisory services without needing a license from MAS. According to the MAS, the scheme is designed to simplify regulatory requirements for smaller businesses that provide lower-risk financial services.
The deadline for submitting annual returns is five months after the previous financial year. This means that the annual return must be submitted to the Monetary Authority of Singapore (MAS) within five months of the anniversary date of the license approval.
For example, if your Exempt Corporate Advisory License was approved on December 15, the annual return must be submitted to the MAS by May 15 of the following year.
Failure to comply with these annual compliance requirements may result in penalties or sanctions from the MAS. The body can also revoke your Exempt Corporate Advisory License. License holders must stay up-to-date with the latest regulatory requirements and comply with all applicable regulations.
For professionals and entities looking to provide corporate finance advisory services in Singapore without a Capital Markets Services (CMS) license, applying for Exempt Corporate Finance Advisor status is a viable pathway. Under the Securities and Futures Act (SFA) Second Schedule Exemption, firms serving only accredited investors or institutional investors may be exempt from licensing — provided they meet strict criteria.
To qualify, firms must notify MAS through MAS Lodgement Form 22 and declare eligibility via Form 25. These forms assess factors like fit and proper criteria, internal governance, and compliance readiness. While exempt status offers operational flexibility, it also comes with ongoing compliance obligations, including annual lodgements, maintaining AML/CFT protocols, and fulfilling business conduct requirements outlined by MAS.
Many firms engage outsourced compliance consultants in Singapore to help manage regulatory submissions, especially as MAS tightens oversight in 2025. Whether you’re focused on M&A advisory, debt capital markets (DCM), or equity advisory services under exemption, it’s essential to align your structure with the latest Singapore corporate finance exemption regulations.
For help navigating setup, post-lodgement compliance, and documentation, you can consult specialists in Exempt Corporate Advisory Setup Singapore to ensure a smooth and compliant launch.
Submitting financial statements is an important part of the regulatory framework for LFMCs. It provides the Monetary Authority of Singapore (MAS) with essential data to monitor the financial health of Licensed Fund Management Companies (LFMCs) and exempt corporate advisors under the MAS SFA Second Schedule exemption. These submissions also ensure alignment with the Business Conduct Requirements for Exempt Advisors in Singapore, particularly when dealing with accredited investors or institutional investors. Let us look at some reasons for this :
Submitting financial statements annually is an important part of complying with regulations, demonstrating transparency, managing risk, and protecting the public interest.
The submission deadline depends on the end of your financial year. The MAS requires that LFMCs submit their annual financial statements within six months from the end of their financial year. For instance, if your financial year ends on December 31st, you must submit your financial statements to the MAS by June 30th of the following year.
Not submitting your financial statements within the deadline may result in penalties and fines from the MAS. It may also raise concerns about your company’s compliance and ability to manage financial affairs, which could negatively impact your reputation and standing with stakeholders.
If you are not sure about the submission deadline or process, contact the MAS for clarification and guidance. You may also decide to hasten the process by seeking professional help from experienced compliance experts.
For a company to qualify as an exempt entity in Singapore, it must have its operations based in the country. Therefore, it is not acceptable for an exempt person to be a shell entity with no business operations in Singapore, as this would violate the law. Furthermore, the exempt person must appoint a resident director responsible for the day-to-day operations.
To qualify for operating as an exempt person, an entity must submit a set of specified forms found on the MAS website to MAS within 14 days of commencing their business.
To begin operating as an exempt person, all applicable requirements must be met, as outlined in the SFA and/or FAA and the relevant Regulations, Notices, and Guidelines. In addition, the MAS must be notified of the commencement of business by submitting a specific Form found on the MAS website within 14 days of starting operations.
Once the notification form(s) are received, the MAS will be informed about the commencement of business. However, the MAS does not offer any certification or acknowledgment to exempt persons as they are not regulated, licensed, supervised, or registered by the MAS.
An exempt person and their representatives cannot, under any circumstances, represent themselves or their business as licensed, regulated, supervised, or registered by MAS, either verbally or in writing. Such representation is strictly prohibited.
According to the Guidelines on Fit and Proper Criteria, key officers and controllers of an exempt entity must possess competence, honesty, integrity, and sound financial standing. Therefore, an exempt entity must evaluate the fitness and propriety of all key officers and controllers both before their appointment and continuously after that.
MAS regards contraventions by an exempt entity with utmost seriousness, and it is committed to taking decisive regulatory actions when applicable laws and regulations are violated. Accordingly, the corporation and/or the individual may face regulatory consequences in such cases. Furthermore, these contraventions are duly considered by MAS when determining future actions to be taken against the exempt entity, should there be subsequent breaches of applicable laws and regulations, or when evaluating any licensing applications submitted by the exempt person.
If an exempt person fails to commence operations within six months from the indicated commencement date on the lodgement form, their exemption status will no longer be valid. However, once you are prepared to initiate your business, you can submit a re-lodgement to MAS.
There is no mandatory requirement for representatives of exempt entities to undergo the CMFAS Exams.
An exempt entity is responsible for conducting thorough due diligence to confirm its clients' accredited, expert, or institutional status. This process should include robust checks and be substantiated by appropriate documentary evidence to ensure a comprehensive audit trail. Secondly, per the Notice on Prevention of Money Laundering and Countering the Financing of Terrorism, an exempt entity must adhere to customer due diligence measures when establishing business relations with customers, among other obligations.