MAS Consults on Streamlined Regulatory Framework for Fund Managers
Singapore, 24 October 2023... The Monetary Authority of Singapore (MAS) today launched a public consultation on its proposal to streamline the regulatory framework for fund managers. Specifically, the existing Registered Fund Management Companies (RFMCs) regime will be repealed, and existing RFMCs that are in operation will be approved as Licensed Fund Management Companies (LFMCs) upon application.
2 The RFMC regime was introduced in 2012, following the repeal of an earlier regime for Exempt Fund Managers
3 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. Many RFMCs have also upgraded to become A/I LFMCs as their businesses grew, and most new entrants seeking to conduct fund management in Singapore tend to apply to be A/I LFMCs rather than RFMCs.
Transitional arrangements for existing RFMCs
4 Existing RFMCs can continue operating as usual during the transition process.
5 MAS proposes a simplified process for RFMCs that wish to apply to become A/I LFMCs.
a. RFMCs will need to submit a form during a prescribed application window, setting out their assets under management and confirming their ability to comply with the regulatory requirements for A/I LFMCs. MAS will respond to all applications from RFMCs within a month.
b. MAS will retain the limit of S$250 million on the managed assets of RFMCs that transition to become A/I LFMCs. After the transition, they can apply to MAS to uplift the limit on managed assets, if they have plans to grow their managed assets.
c. RFMCs that apply to become A/I LFMCs will not have to pay any application fees for transition to become A/I LFMCs.
6 Prior to the repeal, MAS will conduct a briefing for RFMCs to address any uncertainty over the transitional arrangements.
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