A Practitioner's Guide to the CIS Regime under the Securities and Futures Act (SFA)
(Last updated on 31 August 2006)

Schemes constituted in Singapore

Schemes constituted outside Singapore

Authorised schemes
(Use Form 1 in the SFR¹ to apply for authorisation of each scheme)*

• Manager must hold a CMS licence for fund management (or be exempted from a CMS licence, or be a public company in certain cases) and be fit and proper.
  
  
• Trustee must be approved to act as trustee for CIS.
  
  
• Trust deed must comply with prescribed requirements in the SFR.
  
  
• Scheme must comply with the Code on Collective Investment Scheme(including any applicable investment guidelines).²
  
  
• A prospectus in compliance with the SFA must be lodged and registered. (Use Form 6 in the SFR to lodge prospectus)

• Manager must be licensed or regulated in the jurisdiction of its principal place of business and be fit and proper.
  
  
  
• Laws and practices of the jurisdiction in which the scheme is constituted afford investors in Singapore protection at least equivalent to that provided by the SFA for comparable authorised schemes. MAS would consider, for example, whether there is a legal requirement for the manager to manage the scheme in the interests of investors, whether there is independent adequate safekeeping of scheme assets, whether there is an independent party (such as an independent trustee in the case of a unit trust, or independent directors in the case of a mutual fund company) which exercises oversight over the manager.
  
  
• Recognised schemes are not subject to the investment guidelines set out in the Code of Collective Investment Schemes. However, MAS would only recognise a foreign scheme if it is subject to investment guidelines in its home jurisdiction which are substantially similar to Singapore's.³
  
  
• There must be a representative for the scheme in Singapore to act as a liaison between investors and the foreign manager. The representative must be an individual, a company incorporated in Singapore, or a foreign company registered in Singapore under the Companies Act.
  (Note that the representative is required to accept service of process, should the need arise.)
  
  
• A prospectus in compliance with SFA must be lodged and registered.   (Use Form 6 in the SFR to lodge prospectus)
  The foreign prospectus can be used if it (either on its own, or together with a Singapore "wrapper") contains all the information required under the SFA.
  
  
• Manager (together with its related companies) should be managing at least S$500m of discretionary funds in Singapore.

Restricted authorised schemes
(Use Form 4 in the SFR to apply for restricted authorisation of each scheme)*

• Manager must hold a CMS licence for fund management (or be exempted from a CMS license, or be a public company in certain cases) and be fit and proper.
  
  
• Trustee must be approved to act as trustee for CIS.
  
  
  
• Not required to comply with any investment guidelines.
  
  
• Unlike offers to retail investors, a prospectus is not required. However, the offer must be accompanied by an information memorandum. Please see s305 SFA for required statements in an information memorandum. The information memorandum is not required to be lodged or registered.

• Manager must be licensed or regulated in the jurisdiction of its principal place of business and be fit and proper.
  
  
  
• Not required to comply with any investment guidelines.
  
  
  
• Unlike offers to retail investors, a prospectus is not required. However, the offer must be accompanied by an information memorandum. Please see s305 SFA for required statements in an information memorandum.
  The information memorandum is not required to be lodged or registered.

• CIS offered to the institutional investors as defined in section 4A of the SFA are exempted from all authorisation and prospectus requirements under the SFA.
  
  
• Unlike offers to accredited investors, an information memorandum is not required.

There is no minimum subscription
requirement for all funds, including hedge funds.

• CIS offered to the institutional investors as defined in section 4A of the SFA are exempted from all recognition and prospectus requirements under the SFA.
  
  
• Unlike offers to accredited investors, an information memorandum is not required.

There is no minimum subscription requirement for all funds, including hedge funds.

Note:
Offers of collective investment schemes, as defined in section 2 of the Securities and Futures Act (Cap. 289) (the SFA), are regulated under Division 2, Part XIII of the SFA.

Links to relevant legislation, guidelines and practice notes are provided below:

• Securities and Futures Act (Cap. 289) (SFA)
  
  
• Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 (SFR)
  
  
• Code on Collective Investment Schemes
  
  
• Application Forms
  
  
• Administrative Procedures for Retail Schemes
  
  
• Administrative Procedures for Restricted Schemes
  
  
• CIS Lists