RFMC License Singapore | Registered Fund Management Company| RT Compliance

Singapore RFMC License Application Service

Singapore Registered Fund Management Company (RFMC) License is a permit from Singapore’s government for a business to perform regulated fund management services. RFMC is closely related to LFMC (A/I) regarding the minimum base capital and the type of investors. However, RFMC limits the number of institutional investors that can join the business, at most thirty accredited investors. The Singapore Regulatory Framework requires that every company under RFMC license must have a base capital of at least S$250,000 and a maximum of thirty accredited investors. If your business falls under these specifications, the SFA requires you to get this license to conduct business without legal complications.

Why you need the RFMC License Singapore?

Singapore is no secret among the best countries in financial operations. However, there many things that make Singapore exceptional and stand out among the other countries in the financial business. The main reason is the stable regulatory framework. In this case, we are considering the RFMC license, and here are the reasons you need this license.

Avoid harsh punishments from the Singapore government: Singapore has set up a stable regulatory framework favouring clients, investors, and customers. As a result, every business performing regulated financial services must comply with the rules. Otherwise, there are heavy punishments like restrictions, fines, imprisonment, and other harsh penalties. So, suppose you are working in this category, ensure that you have this license.
Protect your business: With this license, your business can run in the country without legal issues, and you can efficiently deal with fraud and other issues.
Why is that? The Monetary Authority of Singapore (MAS) has established rules that protect your business and often assist in challenging situations.
Singapore, under the MAS, can keep track of all the RFMC businesses: This registration allows the country to monitor all the companies in this category and set up rules that promote the businesses.

What is the processing time for RFMC License application?

When an applicant applies for the RFMC Retail license, the general processing time is four 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 RFMC License Application service provider like our program. We offer professional help so that you can achieve a smooth application process.

How much is the the RFMC License fee in Singapore?

Every RFMC must pay the S$4000 license fee during its registration phase

How to Apply for RMFC License in Singapore? Step by Step Guide

The application process for a Registered Fund Management Company (RFMC) License in Singapore requires adherence to Monetary Authority of Singapore (MAS) regulations through a series of essential actions. The following guide offers straightforward instructions for applying to become a Registered Fund Management Company under the guidelines of Monetary Authority of Singapore:

1. Understand the RFMC License Requirements

Your business needs to fulfill these requirements before starting operations:
Minimum Base Capital: At least S$250,000.
Physical Office: A local Singapore office with at least two full-time employees.
All vital personnel operating in the position must demonstrate at least 5 years of experience in their field.
Compliance Arrangements: Either in-house compliance or outsourced to a professional firm.
The financial institution needs to establish robust policies toward Anti-Money Laundering and Counter Financing of Terrorism.

2. Prepare a Comprehensive Business Plan

All prospective applicants need to provide a detailed business strategy that includes:

Nature of your fund management activities
Target market (i.e., accredited investors)
Investment strategies
Operational workflow
Risk management policies

3. Gather Required Documents
You need to gather every required document including the following list of items:

Business profile and organizational structure
Compliance manuals
Risk management policies
Due diligence policies
Financial projections
Report stored details regarding personal information and work experience of directors and key officers.

4. The applicant needs to complete their submission of the Application through MAS’s Online Portal.
The RFMC License submission requires use of MAS’s CMS License Application Portal. You will need to:

Sign up with the portal as an account holder.
Fill out all required forms
Upload supporting documents
Pay the non-refundable S$4,000 application fee

5. MAS Review and Processing

MAS would usually take around four months to evaluate standard applications that present straightforward documentation.
The licensing department of MAS may ask for supplementary clarifying information from the applicant.
Complex applications may take longer.

6. Respond to MAS Queries Promptly

Any queries raised by MAS during their review process must receive timely correct answers to prevent any processing delays.

7. License Approval and Registration
Once approved, you will:

MAS lists fund management companies as Registered Fund Management Companies on their public register.
The organization can proceed with fund management service provision to accredited and institutional investors after receiving authorization.

RFMC License Requirements in Singapore

What are the RFMC requirements ?

Minimum base capital for RFMC License Requirements in Singapore

MAS requires that every business running regulated financial services under the RFMC entity must have a base capital (minimum amount that a company must have in their account at all times) of at least S$250,000.

Staff Requirements RFMC License Requirements in Singapore

Every RFMC business must have a physical office with at least two full-time employees living in Singapore. Also, these workers must have a minimum experience of 5 years in the relevant businesses.

Business Compliance RFMC License Requirements in Singapore

MAS doesn’t make it a must for an RFMC to have a compliance sector. However, they must have the necessary compliance programs, either independent compliance or external compliance arrangements. The means they choose depend on the business owner’s preference.

Risk Capital Requirements:

Unlike LFMC, the RFMC entity doesn’t require a business to have the base risk capital; hence MAS can approve your license without risk capital.

Annual Auditing RFMC License Requirements in Singapore

After a business receives RFMC license approval, it must perform an internal audit and a yearly MAS audit.

Annual Corporate Fee RFMC License Requirements in Singapore

For acquiring the registration status or license, MAS requires that every RFMC pay a yearly fee of S$1000.

Business Plans RFMC License Requirements in Singapore

Ensure that you submit your business models for review so that MAS can understand your business better.It is critical to ensure that these plans are straightforward, brief, but knowledgeable and convey complete business information.

AML/CFT requirements for RFMC License in Singapore

As Singapore deals with financial terrorism and Money laundering activities with stringent measures, MAS requires that every business must comply with the Anti-money laundering requirements. Also, they must learn more about their clients.

Annual Compliance

Annual Compliance

Singapore MAS requires that every RFMC must comply with some annual submissions, including:

Annual declaration of any critical changes in the business and you must submit it within one month after the financial year ends
Annual auditor’s report within five months after the end of the financial year
Audited financial reports, including balance sheets and profit and loss, accounts for the last financial year

HOW CAN WE HELP ?

An RFMC license is a critical detail for every business performing regulated financial activities under the RFMC entity. However, the biggest challenge is the license application process. Our website got you covered on the matter. Visit us today for guidelines during the following procedures

Preparation

We have a reliable team to consult with as you prepare for the application process. The team will guide you on all the requirements and the documents you must prepare.

Application Filling

Our talented team is ready to fill all the necessary submissions to MAS for you.

Post Licensing Requirement

After your license approval, you don’t have to look for other experts to help you with additional services such as compliance since our team has all these services that you may need.

RFMC vs LFMC License Comparison: Which One Fits Your Business?

The Monetary Authority of Singapore (MAS) regulates fund management companies in Singapore. It requires them to obtain either a Registered Fund Management Company (RFMC) or a Licensed Fund Management Company (LFMC) status, depending on their business activities and the scope of their operations.

Registered Fund Management Company (RFMC) : A RFMC is a fund management company that manages private funds, that are only offered to a limited group of investors, namely accredited individual investors or institutional investors. The required base capital is S$250,000.
Licensed Fund Management Company (LFMC) : A LFMC is a fund management company manages funds, including retail funds, offered to the general public. LFMCs are subject to more stringent regulatory requirements. They must have a CMS license.

LFMCs must also have a minimum base capital of S$500,000 and demonstrate that their directors, representatives, and shareholders are fit and proper persons.

What Do Accredited Investors a Mean?

In regard to a Registered Fund Management Company (RFMC) in Singapore, an accredited investor refers to an individual or entity assessed by the Monetary Authority of Singapore (MAS) or a financial institution as having a higher level of financial know-how and experience.

Accredited investors can invest in private funds managed by RFMCs, which are unavailable to the general public. One is considered an accredited investor if he meets any or all of the following criteria :

Has net personal assets of at least S$2 million, or its equivalent in foreign currency, excluding the value of his or her primary residence;
Has net financial assets of at least S$1 million, or its equivalent in foreign currency;
Has a total annual income of at least S$300,000, or its equivalent in a foreign currency, in the preceding 12 months; or
Entities such as corporations and trusts can also be accredited investors if they meet certain criteria, such as having net assets exceeding S$10 million or being controlled by accredited investors.

Investors are accredited to evaluate their financial knowledge and experience in understanding the risks of investing in private funds and can make informed investment decisions.

Accreditation allows RFMCs to offer private funds to a select group of investors, without the need for extensive regulatory oversight and disclosure requirements. However, accredited investors are still subject to certain regulatory requirements. These include providing written consent for certain investments and being informed of the risks involved.

ASKED QUESTIONS

FAQs about RFMC License Application

1. Who is an accredited or institutional investor?

An accredited investor is an individual assumed to have the relevant knowledge in the business and have easy access to resources, ensuring that their interests are well-protected. As a result of that, the Singapore Regulatory Framework set up few protection rules. However, these investors give up some regulatory protections that safeguard them.

Office Address

Phone Number

Email Address

Archives

Categories