Is the CEO Mandatory in a Fund Business in Singapore? | CEO Requirements under MAS Guidelines
The term Chief Executive Officer (CEO) refers to the senior-most decision-maker in many businesses, including fund management companies. But is the CEO mandatory in fund businesses in Singapore? This article explores whether a fund management company must appoint a CEO under the Singapore regulatory framework, especially under the Monetary Authority of Singapore (MAS) guidelines.
Who is Considered a CEO in a Fund Management Company in Singapore?
In the Singapore’s Companies Act (CA), a CEO is either an employee or someone working on behalf of the company whose primary role is to manage a part of the whole business. They conduct everyday business operations, and the employees are under them. The Singapore Companies Act states that the term CEO refers to any individual whose job includes the mentioned roles regardless of the title the company gives them. This detail means that even if a company refers to an individual who performs these duties as the Managing director or the founder, Singapore law considers them the CEO.
Its vice versa is also true that if an individual is officially titled as the CEO but doesn’t take part in the management and business conduct, then the Singapore law doesn’t consider them as the CEO.
Is It Mandatory for a Fund Management Company in Singapore to Appoint a CEO?
Singapore is one of the largest Fund business centers globally; hence many financial experts migrate into the country to conduct their businesses. However, the country also features a stable regulatory framework that people must follow to don’t crush with the government. One of the frequently asked questions includes the CEO’s legal necessity in the fund business. Singapore Regulatory Framework states that for a company to become legit in the country, it needs at least one Singapore-based person to take up the legal title of director and become in charge of its day-to-day operations. As a result, it’s not mandatory to have a CEO in the fund business.
However, in larger businesses, the management team often gives titles such as CEO and Managing director for easy running. Also, companies can have more than one CEO.
Key Responsibilities and Role of a CEO in Fund Management in Singapore
- Principally managing the fund business
- CEOs are in charge of other employees in the company and ensures that their day-to-day operations run smoothly.
- They are an executive decision-maker who play a crucial role in most of the choices that a fund business take
CEO Requirements for Singapore Fund Businesses: Key Takeaways & Exemptions
Generally, many people believe that a company needs a CEO to operate. However, the Singapore laws don’t agree with these assumptions that people frequently put in mind. The country’s regulatory framework defines the Chief Executive Operator stating who this title should refer to in the fund business. Also, a director is the only requirement for a company to become registered under Singapore laws. Are you thinking of kicking off a fund business? If yes, there are some things you must learn about the governance team, and this article offers you some of the pointers you can follow to learn the necessary facts.
