Monetary Authority of Singapore Annual Report 2011/2012
Our Work

Enhanced Regulatory Regime for Fund Management Companies

Following the policy and legislative consultation exercises in April 2010 and September 2011, MAS will implement a set of revisions to the regulatory regime for fund management companies (FMCs) in Singapore in 2012, with the objective of enhancing supervisory oversight and raising the quality of players entering the industry.

Under the enhanced regime, a new category of Registered Fund Management Companies (RFMCs) will replace the current Exempt Fund Manager (EFM) regime. RFMCs may serve up to 30 Qualified Investors and manage up to S$250 million in assets under management. All FMCs will be required to meet enhanced competency, business conduct and capital requirements. These include undergoing independent annual audits by external auditors and having an adequate risk management framework commensurate with the type and size of investments managed by the FMCs. There will be a six-month transitional period for EFMs to migrate to the new regime.

As part of the overall revision of the regulatory regime, MAS is also launching a new Corporate E-Lodgment system to enhance efficiency and streamline processes for FMCs. The new online system will allow FMCs to submit RFMC registrations and applications for a Capital Markets Services licence, as well as submit their regulatory returns.