MAS consults on regulatory structure for fund managers
THE Monetary Authority of Singapore (MAS) launched on Tuesday (Oct 24) a public consultation exercise regarding its plans to streamline the regulatory framework for fund managers.
The move comes as global uncertainty drives a sharp jump in asset inflows attracted by the city state’s relative political stability, low taxes, and policies favourable for setting up funds.
Total assets under management in Singapore rose 16 per cent to S$5.4 trillion in 2021, the latest central bank figures show, outstripping an increase of 12 per cent worldwide that year, to S$153.2 trillion.
MAS is proposing a simplified process for existing registered fund management companies (RFMCs) that seek to become licensed fund management companies (LFMCs). It has invited submission of comments by Dec 31.
RFMCs have similar admission criteria and business conduct requirements as LFMCs that serve only accredited or institutional investors (A/I LFMCs).
The RFMC regime, introduced in 2012, will be repealed as all existing registered fund managers get approved as licensed fund management companies.
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“Since 2012, the business models and risk profiles of RFMCs and A/I LFMCs have increasingly converged, making the regulatory distinction between the two less meaningful,” the MAS said in a statement.
RFMCs will have to declare their assets under management and confirm their ability to meet the regulatory requirements in the new framework, it added.
The central bank will, however, retain a S$250 million commitment limit on the managed assets of the RFMCs that make the transition, although it added they could subsequently apply for the limit to be raised.
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In 2020, MAS said it would commit S$250 million over the next three years to enhance an existing scheme to speed growth in the financial sector.
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