Protect investors, but give private market fund managers flexibility, industry players tell MAS

[SINGAPORE] The transparency of private market funds, the amount they charge in fees, and the methods of valuation were among key points raised in the feedback given by industry participants to the proposal by the Monetary Authority of Singapore (MAS) to broaden investor access to private assets. 

On Mar 27, the central bank had invited views on its proposal on a framework for private-market investment funds, with a view to giving more retail investors exposure to the asset through long-term direct investment funds, or fund of funds. The submission deadline was May 26.

The private capital community has welcomed MAS’ proposal, describing it as an important step in building a more sophisticated investment ecosystem in the Republic. But a common thread in the feedback given was the need to strike the right balance between investor protection and product innovation. Especially pertinent was the need to ensure that investors are aware that such investments are less liquid.