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Singapore LFMC (Retail) License Application Services

Suppose a company in Singapore manages funds of investors in a collective method or has investments in the capital market or other financial entities; you need to have the necessary licensing depending on your operations. There are many types of licenses that many fund managers can get for their work. However, in this category, we will discuss the LFMC Retail License. It is the highest license under the Monetary Authority of Singapore (MAS) under the fund management entity.

Why do you need the LFMC Retail License?

The LFMC Retail License is a must-have permit for all financial management companies operating third-party financial investments or managing funds for investors in a standard scheme. Singapore is strict with its regulatory framework; hence you need a license to manage any funds in Singapore. Also, many advantages come when running a legit business, including good performance, a great management team, and avoiding penalties.

What is the processing time for the LFMC Retail License application?

When an applicant applies for the LFMC Retail license, the general processing time is 4-6 months, which MAS takes to review and process the application. However, this standard processing time is only applicable for cases where the application is direct with a straightforward business plan. In the case of a complex situation, the processing time may take longer. These facts explain why you need the LFMC Retail License Application service provider like our program. We offer professional help so that you can achieve a smooth application process.

How much is the LFMC Retail License fee?

Every LFMC Retail License must pay the S$4000 license fee during its registration phase

LFMC (Retail) LicenseWhat are the Requirements?

As mentioned above, the LFMC Retail License is the highest-level licensing in the fund management entity. Therefore, there are several application requirements that you must meet before MAS approves your license.

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Minimum Base Capital

Every applicant of the LFMC (Retail) License must have a minimum base capital starting from S$500,000. There is a particular case when the minimum base capital is higher based on risk requirements. This situation occurs when LFMC has to keep resources more than the risk requirements

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Staffing Requirements

Three full-time Singapore-centered employees with at least five years of related experience are needed. The proposed chief executive officer (CEO) must have a minimum of ten years of experience in the sector.

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Compliance Function

License holder should have an independent compliance functions or department in the Company. Independent and committed compliance role is expected. However, this can be managed inhouse or managed with the help of the external consultant

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AML/ CFT Requirements

Every LFMC must follow the anti-money laundering and financial fraud compliance policies under the CMS licenses. MAS requires the fund management companies to know more about their investors and report in case of suspicious activity

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Misconduct of MAS representatives

MAS requires that all their representatives work according to the regulatory framework. However, in misconduct cases, the LFMC must report to the Singapore-based authority in case of any wrongdoing and take the necessary precaution measures.

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Physical office requirement

Every LFMC must have a registered physical office. It must be a dedicated area that is only accessible to key individuals such as the directors and the staff. Note that the office mustn’t feature co-working spaces since it won’t qualify as a dedicated office.

Annual Compliance

As mentioned earlier, the LFMC Retail license has strict compliance requirements. They include: After the financial year, you must submit the documents below to MAS within the next five months.

  • Statement of financial assets and resources
  • Statements of the liabilities and assets
  • A report on the CMS license’s holder accounts
  • A CMS license holder’s auditors report
  • Auditor’s certification for the CMS license holder
  • Financial statements
  • Also, the LFMC must comply with the quarterly filling of these documents
  • Statement of the resources and risks requirements
  • Assets and Liabilities statement
How we can help

The Singapore LFMC License Application Process is complex since there is much professional information that the applicant must keep in mind. However, most of them have limited facts on the matter; hence professional help is a must-have department for a smooth application process. Our service is an LFMC Retail License Application Service Provider with a team of professionals ready to assist you throughout the whole process so there is no mistake and you can get quick approval.

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Why Should I Submit Financial Statements Annually?

Submitting financial statements is an important part of the regulatory framework for LFMCs. It provides the MAS with the information it needs to monitor the financial health of LFMCs, and to ensure that they are operating in compliance with the relevant regulations and guidelines. Let us look at some reasons for this :

  • Compliance with Regulations : As an LFMC, you must comply with a set of regulations and guidelines set out by the MAS, which cover everything from how you manage your clients’ funds to how you report your financials. Submitting your financial statements annually is a key part of complying with these regulations.
  • Transparency : By submitting your financial statements annually, you demonstrate transparency to the MAS, your investors, and other stakeholders. This helps build trust and confidence in your company, and to ensure your clients’ funds are being managed responsibly.
  • Risk Management : The MAS uses financial statements to assess the risk profile of an LFMC. By analyzing the financial statements, the MAS can identify potential risks and take appropriate action to mitigate those risks.
  • Public Interest : Requiring LFMCs to submit financial statements annually is a way for the MAS to fulfil its mandate, as it allows them to monitor the financial health of LFMCs and act where necessary to protect the public interest.

Submitting financial statements annually is an important part of complying with regulations, demonstrating transparency, managing risk, and protecting the public interest.

By What Date Should I Submit These Statements?

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.

What Happens If I Don’t Submit Them?

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.


FAQs about the LFMC (Retail) License Application Services

Any fund management company that is dealing with third-party common investment projects and is working with non-accredited investors.

It is the amount of money the fund management company must have in their account every time. Note that it doesn’t include the legal entity’s legal capital.

It is a permit under the Monetary Authority of Singapore in the fund management entity. It is the highest level of licensing in this entity since it has no restrictions on the investors you can work with throughout the investment scheme.

Singapore is strict with its regulatory framework; hence there are legal consequences when running an LFMC without the necessary license.

An LFMC (Retail) license Application service provider like ours is the best place to seek professional help during the application process

Retail works with retail investors while the A/I works with accredited or institutional investors.

Singapore has a stable regulatory framework running the financial institutions. License rules are strict and you must comply with them. Otherwise, you may face imprisonment, harsh fines, or punishment as per MAS guidelines

Any investor that isn’t an institutional investor is a retail investor. Who is an institutional investor? An investor who pays attention to his/her gains hence doesn’t need the government to impose strict rules to protect them. However, a retail investor needs more protection policies and guidelines when making financial decisions. As a result, the LFMC license comes with restrictions that protect retail investors.

Every retail LFMC must include PII coverage which depends on the funds’ size under the company. MAS requires that the PII coverage must be 2-3% of the AUM. The fund management company may miss the PII if it applies to MAS as an exemption if it works under a parent company.

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