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MAS sets out proposals for securities-based crowdfunding

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The Monetary Authority of Singapore (MAS) has published a consultation paper setting out proposals and clarifications to facilitate access by corporates to alternative sources of funding through securities-based crowdfunding (SCF).

THE Monetary Authority of Singapore (MAS) has published a consultation paper setting out proposals and clarifications to facilitate access by corporates to alternative sources of funding through securities-based crowdfunding (SCF).

As a start, MAS will facilitate SCF offers to accredited investors and institutional investors through the following initiatives:

- MAS proposes to ease the current financial requirements for intermediaries that deal in securities, so long as they do not handle or hold customer monies, assets or positions and do not act as principal in transactions with customers. This will allow potential SCF platform operators with lower financial resources to apply for a licence to offer SCF investments.

- MAS clarifies that the advertising restriction for restricted offers made to accredited investors (that are exempted from the prospectus requirement) does not prohibit SCF platform operators from advertising their platforms, so long as reference is not made to any specific SCF offer listed on their platforms. This clarification will provide certainty to potential SCF platform operators in the manner in which they can publicise their business.

Lee Boon Ngiap, assistant managing director, Capital Markets, MAS, said: "These proposals seek to strike a balance between facilitating investments in start-ups and small businesses and ensuring that there are sufficient safeguards for investors. We look forward to feedback from investors and market participants on the proposals to promote a conducive and sustainable environment for securities-based crowdfunding in Singapore."

Interested parties can submit their comments to crowdfunding_consultation_2015@mas.gov.sg by March 18.