Singapore, 27 September 2011…  MAS has issued a consultation paper (251.5 KB) to seek comments on the draft legislative amendments to give effect to the revised regulatory regime for fund management companies (“FMCs”), as well as additional proposals to further enhance the business conduct requirements for FMCs.

2   The draft legislative amendments reflect the proposals set out in MAS’ first policy consultation on the regulatory regime for FMCs conducted in April 2010, and MAS’ response to feedback received, which was published in September 2010.  The revised regime is expected to take effect in early 2012.

3   As part of our on-going review of the regulatory framework, MAS is also proposing additional requirements to enhance the business conduct requirements for FMCs.  MAS proposes to require FMCs to put in place a risk management framework over their fund management operations to identify, address and monitor the risks associated with the assets that they manage.  MAS also proposes to require FMCs which operate under the notification regime to undergo independent annual audits.

4   We also intend to introduce a new Capital Markets and Financial Advisory Services (“CMFAS”) examination requirements for representatives of Licensed Retail FMCs which manage or offer Specified Investment Products to persons who are not accredited or institutional investors.  This is aimed at raising the competency and product knowledge of FMC representatives.

5   MAS adopts an open and consultative approach with the industry.  In developing this set of proposals, MAS has considered the views and comments from the public, investors, market practitioners and industry associations.

6   MAS invites interested parties to give their views and comments on the draft legislative amendments and proposals contained in the consultation paper. The consultation period will end on 26 October 2011.

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