RFMC IN SINGAPORE

Singapore has emerged as one of the best and safest financial hubs, making it an ideal jurisdiction to set up a Registered Fund Management Company (RFMC) or apply for a MAS RFMC license. Fund and asset management is a growing sector, especially for professionals seeking a fund manager license in Singapore. Fund and Asset managements is a lucrative sector for fund managers looking to establish a presence in Singapore. According to the regulatory framework, FMCs can be divided into Registered Fund Management Companies (RFMCs) and Capital Market Services Licenses (CMSLs). RFMC is subject to fewer compliance requirements and oversight. CMSL, on the other hand, is considered a full license and has strict requirements granted to applicants.

Key MAS Eligibility Criteria for Registered Fund Management Companies (RFMCs)

To qualify as an RMFC, an RMC’s assets under management (AUM) must be no more than S$250 million and must cater to no more than 30 accredited investors. Once the MAS approves the license, the FMC can begin operations.

The minimum proficiency requirements for RFMC registration are:

• FMC needs at least he has two directors.
• Director must have at least five years of relevant experience.
• Of the directors, at least one of the executive officers employed full-time for the company’s day-to-day operations must be a resident of Singapore.
• The RFMC Chief Executive Officer (CEO) must have at least five years of relevant experience.
• FMCs must have at least two relevant professionals, directors, CEO, and representatives.
• His FMC professional involved must have at least five years of relevant experience.
• At least two of the FMC’s representatives must be residents of Singapore.

With the relaxation of MAS compliance requirements, fund management has become one of the regulated activities in Singapore, and there are many fund management companies (FMCs) in the country.

Timeline to Apply for an RFMC License in Singapore

The Monetary Authority of Singapore (MAS) typically processes an RFMC license application in Singapore within four months, provided the applicant meets all fund management registration and eligibility criteria, and the application is complete and precise. MAS will need more time to review your application for more complex cases or where information is determined to be incomplete or inaccurate.

Office Requirements for Setting Up an RFMC in Singapore

An RFMC or A/I LFMC must operate from a physical office in Singapore. Suppose a company wishes to use a service bureau in its early stages. In that case, the bureau must be separate from the offices of other users of the service bureau, and RFMC or A/I LFMC information and documents must be stored securely.

Crisis Management & Regulatory Compliance for RFMCs

RFMCs and A/I LFMCs also require detailed compliance, risk management, and KYC manuals to correctly document all policies and procedures. These documents should be customized based on the risks associated with each FMC’s business and operations, specific trading strategies, etc.

Audit & Custodian Requirements for Fund Management Companies in Singapore

RFMC or A/I LFMC must appoint an external auditor with sufficient experience auditing FMCs. An internal audit function will also be implemented to ensure appropriate controls are in place. Managers and managers appointed by FMC must be reputable entities.

Professional Liability Insurance for RFMCs and Fund Managers

RFMCs or A/I LFMCs don’t need professional liability insurance, but many do so because of good practice and investor convenience. Any professional liability insurance arrangement, or lack thereof, must be disclosed to investors.

Needs Help with Your RMFC License Application in Singapore?

If you’re unsure about the eligibility criteria for RFMC Singapore, or need assistance with regulatory compliance or fund management license application services in Singapore, our experienced consultants can guide you through the entire MAS registration process—from meeting the capital requirements to filing your compliance documentation.