Singapore has emerged as an best and safest financial hub due to its robust administrative framework, government support, and business-friendly ecosystem. 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.
Important requirements of RFMC
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.
Processing Time Required
MAS expects the review and processing of an application to take no more than four months, provided the business model is simple, the applicant fully meets the relevant 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.
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.
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 functions, custodian banks, and administrators
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
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.
|compliance singapore||rfmc||cms license|
|rfmc license||vcfm||exempt financial advisor|
|vcc bizfile||lfmc||registered fund management company|
|Risk Management||Capital Market Service License||Asset Management Singapore|