When it comes to investing in Singapore, there are somethings you need to know about fund management licensing and registration. In this blog article , we will explore the requirements for both of these things so that you can be prepared when investing. First, let’s look at fund management licensing. To be a licensed fund manager in Singapore, you must have at least $1 million in assets under management (AUM). You will also need at least three years of experience managing investments, and you must pass a proper test administered by the Monetary Authority of Singapore (MAS). As for registration, you will need to register with the MAS if you plan to manage a fund that is open to retail investors. This includes both public and private funds. You will need to register for public funds as a registered fund management company. You will need to register as a registered investment advisor for private funds. So, there you have it! These are the requirements for both fund management licensing and registration in Singapore. Be sure to meet these requirements before investing legally and safely.
What is fund management licensing and registration or RMFC
To manage a fund in Singapore, you must first obtain a license from the Monetary Authority of Singapore (MAS). This is commonly referred to as the “fund management license” and allows you to operate a fund in the country legally.
To obtain a fund management license, you must first meet specific eligibility criteria set out by the MAS. Once you have met these criteria, you must submit an application to the MAS for approval.
The process of obtaining a fund management license can be pretty complex, so it is advisable to seek professional help when applying.
Once granted a fund management license, you must register your fund with the Registry of Moneylenders and Financial Advisers (RMFA). This registration is necessary for your fund to be marketed and sold in Singapore.
The RMFA is responsible for regulating all financial advisers and moneylenders in Singapore. As such, they will require that your fund meets specific standards before it can be registered.
After your fund has been registered with the RMFA, you can start marketing and selling it in Singapore. However, you will still need to comply with all of the MAS’s rules and regulations.
Crucial requirements for RFCs
Several requirements must be met to obtain a license for a fund management company (RFMC) in Singapore. First and foremost, the company must have at least $50 million in assets under management (AUM). Additionally, the company must have five years of experience managing investment funds and be registered with the Monetary Authority of Singapore (MAS).
The company must also have a sound investment philosophy and process and a track record of consistent performance. In addition, the company must have a robust compliance program and a commitment to high ethical standards. Lastly, the company should understand the Singapore regulatory environment well.
Different types of fund management licenses in Singapore
Singapore has three fund management licenses: the Full Fund Management License, the Investment Adviser License, and the Excluded Person’s Scheme.
- The Full Fund Management License is the most comprehensive, allowing a company to conduct all aspects of fund management, from investment advisory to portfolio management.
- The Investment Adviser License is more limited in scope and only allows a company to provide investment advisory services.
- The Excluded Person’s Scheme is for individuals who are not employed by a licensed fund manager but still want to provide advice on investing in Collective Investment Schemes.
The registration process for fund managers in Singapore
To be a fund manager in Singapore, you must first be registered with the Monetary Authority of Singapore (MAS). The registration process is as follows:
- Complete and submit the online application form.
- Download, complete, and submit the required supporting documents.
- Pay the registration fee.
- Receive and activate your MAS Registration Number (MRN).
After you have completed these steps, you will be officially registered as a fund manager in Singapore!
Critical Considerations for fund managers in Singapore
Regarding funding management in Singapore, there are a few key considerations that all fund managers should be aware of.
- First and foremost, all fund managers must obtain a license provided from the Monetary Authority of Singapore (MAS). Without a valid license, fund managers cannot operate legally in Singapore.
- All fund managers must register with the Accounting and Corporate Regulatory Authority (ACRA). This is necessary to maintain good corporate governance and compliance with regulatory requirements.
- Thirdly, fund managers should carefully consider the type of structure they want to set up for their business. The most common structures used by fund managers in Singapore are limited partnerships and trusts. Each has its advantages and disadvantages, so choosing the right and coorect one for your specific needs is essential.
- Fourthly, you will need to have a robust investment strategy to succeed in Singapore. This means having a clear understanding of the market and being able to identify opportunities that offer growth potential.
- Finally, it would help if you not forgot that the Singapore market is highly competitive. As such, you must ensure that your fund management company can stand out to attract and retain investors.