New MAS-industry group to bolster Singapore as asset management, fund domiciliation hub

THE Monetary Authority of Singapore (MAS) announced on Tuesday that it is partnering the private sector to strengthen the Republic's value proposition as one of the world's leading asset management and fund domiciliation hubs.

The Singapore Funds Industry Group (SFIG) brings together players across the asset management value chain, including service providers the likes of lawyers, tax advisers, fund administrators and directors. These service providers work with fund managers to support operations throughout a fund's life cycle, in areas such as fund structuring and set up, fund administration, regulatory reporting, tax advisory and fiduciary oversight.

The SFIG will identify emerging industry trends and come up with strategies to develop the asset management ecosystem, comprising four working groups - infrastructure and innovation, policy, capabilities and training, and promotion and advocacy.

The infrastructure and innovation working group will monitor market developments and spur innovation to transform the funds servicing value chain, while the policy working group will provide advice and recommend improvements to regulatory, legal and tax frameworks to better serve the needs of fund managers and investors.

Meanwhile, the capabilities and training working group will focus on building a deep pool of fund specialists and directors in areas such as product development, administration, distribution and fund oversight and governance. As for the promotion and advocacy working group, it aims to raise the global profile of Singapore as a leading asset management and fund domiciliation hub through outreach and engagements with Singapore-based and global asset managers, asset owners and service providers.

The SFIG Executive Committee (ExCo) is co-chaired by Kai-Niklas Schneider, managing partner, head of funds and investment group, Clifford Chance Singapore, and Gillian Tan, assistant managing director (development & international), MAS. The ExCo comprises 10 other senior industry leaders and industry associations representing fund managers and fund service providers.

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On this partnership, Mr Schneider said that SFIG will "play a critical role" in coordinating efforts of MAS and private sector stakeholders to drive sustainable development and growth of the Singapore funds industry.

Ms Tan pointed out that Singapore has more than 1,000 fund managers, with assets under management having grown at a compound annual growth rate of 11 per cent over the last five years to S$4 trillion at the end of 2019.

More than 260 Variable Capital Companies (VCCs) have been set up in Singapore since the launch of the VCC framework in January last year, which was designed to attract the assets of fund managers and family offices.

"Looking ahead, there is much scope for the funds industry in emerging growth areas such as green finance and sustainability, technology and innovation," she noted.

MAS separately said on Tuesday it is also paying attention to new ways that dirty money is channelling into the financial system - singling out VCCs, and virtual assets. MAS is assessing the higher risk segments in this space for "more intensive supervisory follow-up".