Types of Capital Markets Entities in Singapore

Capital markets entities include broker-dealers, fund managers, REIT managers, corporate finance advisers, securities-based crowdfunding operators, credit rating agencies, approved CIS trustees, licensed trust companies and financial advisers. Find descriptions for each entity, including regulated activities and licensing requirements. 

Overview

Refer to the table for the types of capital markets entities and how they are governed.

Entity Governing Act Licensing and Registration
Broker-dealers
Corporate finance advisers
Credit rating agencies
Real estate investment trust (REIT) managers
Securities-based crowdfunding operators
Securities and Futures Act (SFA)
Capital markets services (CMS) licence
Fund managers SFA Fund management licensing and registration
 Approved CIS trustee SFA Approval of CIS trustee
Licensed trust companies
Trust Companies Act (TCA)
Trust business licence
Financial advisers Financial Advisers Act (FAA)
Financial adviser's licence
Markets and exchanges SFA Approved exchange (AE) or recognised market operator (RMO)
Clearing houses SFA Approved clearing house (ACH) or recognised clearing house (RCH)
Trade repositories SFA Licensed trade repository (LTR) or licensed foreign trade repositor (LFTR)
Benchmark administrators and submitters SFA Authorised benchmark administrator, authorised benchmark submitter and designated benchmark submitter

Types of Entities

Find out about the activities, regulations and licensing requirements of each capital markets entity.

Approved CIS Trustees

Approved CIS Trustees (AT) are approved and governed under the Securities and Futures (SFA) and its subsidiary legislations including the regulations, notices, guidelines and circulars.

When is approval required?

A company is required to obtain MAS’ prior approval if it intends to act as trustee for collective investment schemes (CIS) which are authorised for offer to retail investors; and constituted as unit trusts.

What are the requirements for an AT?

An AT should oversee the CIS manager’s compliance with the Code on Collective Investment Scheme, with the best interests of unitholders in mind.

More information can be found in the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 .

What if an AT wants to conduct other regulated activities under the SFA or Trust Companies Act (TCA)?

An AT may also carry out regulated activities under the SFA or trust business under the TCA. If you wish to find out how to conduct regulated activities under the SFA or the TCA, please refer to the Capital Markets Services (CMS) Licence or Trust Business Licence page.

If you wish to find out if a CIS trustee is approved by MAS, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to provide.

Broker-Dealers

Broker-dealers are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the SFA.

When is licensing required?

The scope of a broker-dealer's activities may include:

  • Acquiring, disposing, subscribing or underwriting capital markets products on behalf of any person;
  • Inducing any person to acquire, dispose, subscribe or underwrite capital markets products;
  • Providing financing to another person to buy or subscribe for capital markets products; and/or
  • Providing custodial services for securities.

Capital markets products include securities, collective investment schemes, futures, over-the-counter (OTC) derivatives and leveraged foreign exchange contracts.

For example, if a company intends to buy and sell securities or derivatives contracts on behalf of investors, and the conduct of this activity is carried out with system, repetition and continuity, this company is likely to be considered as a broker-dealer and may need to be licensed.

Depending on the business model, broker-dealers are typically required to hold a CMS licence in one or more of the following regulated activities, unless an exemption applies:

The definitions for the above regulated activities can be found in Part II of the Second Schedule to the SFA .

In addition, the broker-dealer will have to appoint individuals who conduct regulated activities on its behalf as representatives.

Details on how to apply for a corporate licence and appoint a representative can be found on the Capital Markets Services (CMS) Licence page and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page respectively.

What licensing exemptions are available?

Different exemptions are available for different regulated activities. Examples of exemptions are as follows:

  • If a company deal in bonds with accredited investors, expert investors or institutional investors.
  • If a company trade for its own account or a related corporation’s account (i.e. proprietary trading) with or through regulated financial institutions.
  • If a company’s main business is in fund management and holds a CMS licence for fund management, providing custodial services or product financing.
  • If a company is already licensed by MAS as a bank, merchant bank, finance company or insurance company. The company will however be required to comply with the representative notification, and business conduct requirements under the SFA. The company should notify MAS by submitting Form 26 within 14 days prior to commencing the regulated activity under the SFA.

More information on licensing exemptions can be found in Section 99 of the SFA and the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R) .

What are the business conduct requirements?

A broker-dealer is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business, including an independent compliance function in Singapore. The broker-dealer should also adhere to conduct requirements such as segregation of customers’ moneys and assets, provision of statement of accounts to customers, and best execution of customers’ trades, which serve to ensure fair dealing with customers. The broker-dealer should also ensure compliance with MAS’ requirements on anti-money laundering and countering terrorism financing.

More information on the conduct and other requirements are found in the SF(LCB)R and the applicable Notices and Guidelines.

What if a broker-dealer wants to conduct other regulated activities under the SFA or Financial Advisers Act (FAA)?

A broker-dealer may also carry out other regulated activities under the SFA or provide financial advisory services under the FAA . If you wish to find out how to conduct additional regulated activities or services under the SFA or FAA with your existing CMS licence, please refer to the Capital Markets Services (CMS) Licence page.

If you wish to find out the regulated activities which broker-dealers are licensed to conduct, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to provide.

Corporate Finance Advisers

Corporate finance advisers are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the SFA.

When is licensing required?

The scope of a corporate finance adviser’s activities may include:

  • Giving advice on the laws or regulatory requirements on fund-raising by an entity, trust or collective investment scheme;
  • Giving advice on an offer to acquire or to dispose of capital markets products; and/or
  • Giving advice relating to an arrangement, reconstruction or take-over of a company or a business trust, or any of its assets or liabilities.

Capital markets products include securities, securities-based derivatives contracts and collective investment schemes.

For example, if a company intends to provide advice to other companies on how to raise capital, for instance via a private or public offering, and the conduct of this activity is carried out with system, repetition and continuity, this company is likely to be considered as a corporate finance adviser and may need to be licensed.

Corporate finance advisers are required to hold a CMS licence in advising on corporate finance, unless an exemption apply. Corporate finance advisers which also carry out underwriting and placement activities may also be required to hold a CMS licence for dealing in capital markets products.

The definitions for the above regulated activities can be found in Part II of the Second Schedule to the SFA .

In addition, a corporate finance adviser will have to appoint individuals who conduct regulated activities on its behalf as representatives.

Details on how to apply for a corporate licence and appoint a representative can be found on the Capital Markets Services (CMS) Licence page and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page respectively.

What licensing exemptions are available?

There are exemptions available for advising on corporate finance. Examples of exemptions are as follows:

  • If a company gives advice to a related company and such advice is not for the offer of capital markets products to the public. Where the related company is a public company or a company listed on an exchange or its subsidiary, such advice is also not circulated to the related company’s shareholders;
  • If a company gives advice to accredited, expert or institutional investors and such advice is not for the offer of capital markets products to the public. Where the accredited, expert or institutional investor is a public company or a company listed on an exchange or its subsidiary, such advice is also not circulated to that investor’s shareholders. The company should notify MAS by submitting Form 22 within 14 days after the commencement of business;
  • If a company is already licensed by MAS as a bank, merchant bank, finance company or insurance company, the company will however be required to comply with the representative notification, and business conduct requirements under the SFA. The company should notify MAS by submitting Form 26 within 14 days prior to commencing the regulated activity under the SFA; or
  • If a company gives advice on the laws or regulatory requirements on fund-raising that does not involve any capital markets products.

More information on licensing exemptions can be found in Section 99 of the SFA and the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R) .

What are the business conduct requirements?

A corporate finance adviser is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business, including an independent compliance function in Singapore. The corporate finance adviser should also ensure compliance with MAS’ requirements on anti-money laundering and countering terrorism financing.

More information on the conduct and other requirements are found in the SF(LCB)R , and the applicable Notices and Guidelines.

What if a corporate finance adviser wants to conduct other regulated activities under the SFA or Financial Advisers Act (FAA)?

A corporate finance adviser may also carry out other regulated activities under the SFA. If you wish to find out how to conduct additional regulated activities under the SFA with your existing CMS licence, please refer to the Capital Markets Services (CMS) Licence page.

If you wish to find out the regulated activities which corporate finance advisers are licensed to conduct, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to provide.

Credit Rating Agencies

Credit Rating Agencies (CRAs) are licensed and governed under the Securities and Futures Act (SFA) , and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the SFA. 

When is licensing required?

A company that disseminates or distributes an opinion about the creditworthiness of a rating target through the use of a defined ranking system of rating categories is conducting credit rating activities, and would need to be licensed to do so.   

Individuals who are involved in the preparation of a credit rating in Singapore are required to be appointed as representatives.

The activities involved in the preparation of a credit rating include:

  • analysing information or data;
  • formulating or drafting an opinion on the creditworthiness of a rating target;
  • evaluating or approving a credit rating;
  • monitoring or reviewing a credit rating which has been issued;
  • formulating or drafting credit rating methodologies or models; and
  • evaluating or approving credit rating methodologies or models.

If the preparation of credit ratings is carried out wholly outside Singapore, the company and its employees do not need to be licensed even if the credit ratings are intended for dissemination in Singapore.

Details on how to apply for a corporate licence and be registered as an appointed representative can be found on the Capital Markets Services (CMS) Licence page and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page respectively.

For more information, please refer to the FAQs on Credit Rating Agencies.

What are the business conduct requirements?

A credit rating agency is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business, including an independent compliance function. It must also adhere to conduct requirements set out in the Code of Conduct for Credit Rating Agencies.

More information on the applicable regulatory requirements can be found in the Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R) , and the applicable Notices and Guidelines.

Real Estate Investment Trust (REIT) Managers

Real estate investment trust (REIT) managers are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the SFA.

When is licensing required?

A company that manages a REIT, which is a collective investment scheme (CIS) constituted as a trust that invests primarily in real estate and real estate-related assets specified in the MAS Code on Collective Investment Schemes, and is listed on an approved exchange (e.g. Singapore Exchange), is conducting REIT management. The company, which is the REIT manager, would be required to obtain a capital markets services (CMS) licence for the regulated activity of REIT management.

Individuals performing key functions in a REIT manager, such as investment management, asset management, financing, marketing and investor relations are required to be representatives.

Details on how to apply for a corporate licence and be registered as an appointed representative can be found on the Capital Markets Services (CMS) Licence page and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page respectively.

What are the conduct and other requirements for a REIT manager?

A REIT manager is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business. It should also comply with corporate governance principles set out in the Code of Corporate Governance and disclosure requirements on the remuneration of directors and executive officers, and establish adequate compliance arrangements. The REIT manager should also ensure compliance with MAS’ requirements on anti-money laundering and countering terrorism financing.

More information on applicable requirements can be found in the Notice SFA 04-N14 to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust Management and Guidelines to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust Management.

Securities-based Crowdfunding Operators

Securities-based crowdfunding (SCF) operators are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the SFA. 

When is licensing required?

A SCF operator that facilitates offers of securities (e.g. shares or debentures) issued by a company to investors, and carries out this activity with system, repetition and continuity, is likely to require licensing.

Depending on their business model, SCF operators may be carrying out the regulated activity of dealing in capital markets products which are securities, or fund management, unless an exemption applies. For example, a SCF operator which carries on a business in facilitating offers of securities would require a CMS licence for dealing in capital markets products. Where the SCF operator manages a portfolio of investments on behalf of its investors, the SCF operator is required to be licensed for fund management (see Fund Managers tab below).

The definitions for the regulated activities can be found in Part II of the Second Schedule to the SFA .

In addition, the SCF operator will have to appoint individuals who conduct regulated activities on its behalf as representatives.

Details on how to apply for a corporate licence and be registered as an appointed representative can be found on the Capital Markets Services (CMS) Licence page and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page respectively.

What licensing exemptions are available? 

Examples of exemptions available for dealing in capital markets products that are securities include:

  • If a company deals in bonds with accredited investors, expert investors or institutional investors.
  • If a company trades for its own account or a related company’s account (i.e. proprietary trading) with or through regulated financial institutions.
  • If a company is already licensed by MAS as a bank, merchant bank, finance company or insurance company. The company will however be required to comply with the representative notification, and business conduct requirements under the SFA. The company should notify MAS by submitting Form 26 within 14 days prior to commencing the regulated activity under the SFA.

Examples of exemptions available for fund management are:

  • If a company manages a pool of immovable assets for accredited and institutional investors;
  • If a company manages funds for related corporations; or
  • If a company manages moneys belonging to a single group of related family members.

More information on licensing exemptions can be found in Section 99 of the SFA and the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R) .

What are the prospectus requirements and exemptions?

Companies offering securities on the SCF operator’s platform are required to issue a prospectus to investors unless the offer falls within one of the exemptions under the SFA.

Prospectus exemptions are available for offers such as the following:

  • Personal offers raising no more than $5 million in any 12 months;
  • Offers to no more than 50 persons in any 12 months;
  • Offers that are made to institutional investors; and
  • Offers made to accredited investors and family members.

More information on the prospectus exemptions can be found under Sections 272 to 279 of the SFA .

What are the business conduct requirements?

A SCF operator is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business, including an independent compliance function in Singapore. The SCF operator should also comply with conduct requirements such as maintaining proper records of transactions, and provision of statement of accounts and risk disclosures to investors, and MAS’ requirements on anti-money laundering and countering terrorism financing.

In addition, the SCF operator should ensure that companies making offers on its platform comply with the prospectus requirements.

More information on the conduct and other requirements are found in the SF(LCB)R , and the applicable Notices and Guidelines.

What if a SCF operator wants to conduct other regulated activities under the SFA or Financial Advisers Act (FAA)?

A SCF operator may also carry out other regulated activities under the SFA or provide financial advisory services under the FAA . If you wish to find out how to conduct additional regulated activities or services under the SFA or FAA with your existing CMS licence, please refer to the Capital Markets Services (CMS) Licence page.

If you wish to find out the regulated activities which SCF operators are licensed to conduct, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to provide.

Licensed Trust Companies

Licensed trust companies are licensed and governed under the Trust Companies Act (TCA) and its subsidiary legislations, including the regulations, notices, guidelines and circulars issued under the TCA.

When is licensing required?

A company which provides the following trust services may need to be licensed under the TCA:

  • Creation of an express trust;
  • Acting as trustee of an express trust;
  • Arranging for any person to act as trustee of an express trust; and
  • Providing trust administration services to an express trust.

An express trust refers to a trust that is created by a settlor (the person setting up the trust) who gives instructions as to how his or her property is to be held.

What licensing exemptions are available?

Examples of licensing exemptions for certain trust services are as follows:

  • If a company is already licensed by MAS as a bank or merchant bank. The bank or merchant bank should notify MAS by submitting Form 8 within one month from the date of commencement of trust business.
  • If the trust services are carried out by a private trust company, lawyers or accountants. The lawyers should notify MAS by submitting Form 8 within one month from the date of commencement of trust business. In addition, private trust companies are required to engage a licensed trust company to ensure that they comply with MAS’ requirements on anti-money laundering and countering terrorism financing.

More information on licensing exemptions can be found in section 15 of the TCA and regulation 4 of the Trust Companies (Exemption) Regulations , and FAQs on the TCA.

What are the standards of conduct for trust companies?

The licenced trust company should comply with MAS’ requirements on anti-money laundering and countering terrorism financing.

A licensed trust company should put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business. A licensed trust company should conduct its trust business with honesty, fairness, integrity and professionalism.

More information on the conduct and other requirements can be found in the TCA , Trust Companies Regulations and the Guidelines on Standards of Conduct for Licensed Trust Companies.

If you wish to find out if a trust company holds a trust business licence, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to provide.

Fund Managers

Fund managers are licensed or registered and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the regulations, notices, guidelines and circularsSee licensed fund management company, venture capital fund manager, registered fund management company. issued under the SFA.

When is licensing or registration required?

If a company raises and manages third party investors’ funds in a collective investment scheme, or invest them in segregated accounts into capital markets products, such as equities, fixed income and financial derivatives, it is conducting fund management and would need to be licensed or registered to do so.

On the other hand, if a company is managing proprietary monies, or monies belonging to a single party or group of related entities, it is likely to be able to be exempt from licensing or registration. Please see the next section on licensing exemptions for additional reference.

Depending on the size of the company’s expected assets under management and target clientele, it can operate as a:

  • Registered Fund Management Company (RFMC), which can have up to 30 accredited and institutional investors, and S$250 million of assets under management (AUM), or
  • Capital markets services (CMS) licence holder to conduct fund management (licensed fund management company, or LFMC). An LFMC has no restriction on the number of investors or AUM, and can be further categorised into:
    • Retail LFMC – Carries on business in fund management with all types of investors, including retail investors.
    • Accredited/Institutional LFMC (A/I LFMC) – Carries on business in fund management with accredited and institutional investors only. 
    • Venture Capital Fund Manager (VCFM) – Manages venture capital funds only. Such funds have to meet certain fund eligibility criteria such as being mainly invested in start-ups (see Guidelines on Licensing, Registration and Conduct of Business for Fund Management Companies for details of the specific criteria). VCFMs are also restricted to serving only accredited and institutional investors.

You can find additional information on the key differences in requirements for the various categories of fund managers in the Fund management licensing and registration page.

Individuals performing key functions in a fund manager, such as portfolio construction and allocation, research and advisory, business development and marketing or client servicing are required to be representatives.

A company can refer to the Fund management licensing and registration page to find out how to make an application to be an RFMC, Retail LFMC, A/I LFMC or VCFM, and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page on how to appoint individuals as a fund manager’s representatives.

What licensing exemptions are available?

If the scope of a company’s fund management activities falls within certain categories, it may be eligible for an exemption from licensing or registration to conduct fund management. Examples of such companies are those that:

  • Manage a pool of immovable assets for accredited and institutional investors;
  • Manage funds for related corporations; or
  • Manage moneys belonging to a single group of related family members.

In certain scenarios, companies may need to apply to MAS specifically for exemption if they do not fall neatly within the pre-defined scope of exclusion. You can find more information on exemptions under section 99 of the SFA and paragraph 5 of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations .

What are the conduct and other requirements for a fund manager?

A fund manager is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business. The fund manager should also adhere to conduct requirements such as segregation of customers’ moneys and assets, independent valuation of its assets under management, and mitigation of conflicts of interest. All fund managers should also ensure compliance with MAS’ requirements on anti-money laundering and countering terrorism financing.

More information on applicable requirements can be found in the Guidelines on Licensing, Registration and Conduct of Business for Fund Management Companies.

What if a fund manager wants to conduct other regulated activities under the SFA?

A fund manager (other than a VCFM or RFMC) may also carry out other regulated activities under the SFA.

  • If you wish to find out how to carry out additional regulated activities under the SFA with your existing CMS licence, please refer to the Fund management licensing and registration page.
  • If you wish to find out the types of SFA activities an existing fund manager is permitted to conduct, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to conduct.
Financial Advisers

Financial advisers are licensed and governed under the Financial Advisers Act (FAA) and its subsidiary legislation, including the regulations, notices, guidelines and circulars issued under the FAA .

When is licensing required?

A company which conducts one or more of the following activities is required to be licensed as a financial adviser, unless an exemption applies:

  • Advising others concerning any investment product, other than advising on corporate finance.
  • Advising others by issuing or promulgating research analyses or research reports concerning any investment product.
  • Arranging of life policies.

Investment products include all capital market products such as securities, collective investment schemes and leveraged foreign exchange contracts, as well as life policies and structured deposits.

Individuals who conduct the above activities on behalf of a financial adviser in Singapore are required to be appointed as representatives.

Details on how to apply for a corporate licence and be registered as an appointed representative can be found on the Financial Adviser (FA) Licence page and Appointing a Representative for FA Licensees or Exempt Financial Institutions page respectively.

What licensing exemptions are available?

Different exemptions are available depending on the scope and nature of the financial adviser’s business activities. Examples of exemptions are as follows:

  • If the financial adviser only gives advice or provides research analysis on bonds to accredited investors, expert investors or institutional investors.
  • If the financial adviser only gives advice or provides research analysis to not more than 30 accredited investors. The company is required to submit Form 20 within 14 days after the commencement of business.
  • If the financial adviser is already licensed by MAS as a bank, merchant bank, finance company, insurance company, insurance broker, or capital markets services licence holder. It will however be required to comply with the representative notification, and applicable business conduct requirements under the FAA. The company is required to submit Form 26 within 14 days prior to commencing business to notify MAS of its commencement of business activity under the FAA.

More information on licensing exemptions can be found in section 23(1) of the FAA and Part VI of the FAR .

What are the business conduct requirements?

A financial adviser is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business, including an independent compliance function in Singapore. It is also required to adhere to conduct requirements such as making proper disclosure of product information, not making false and misleading statements, having a reasonable basis for making an investment product recommendation, and dealing fairly with customers. A financial adviser must also ensure compliance with MAS’ requirements on anti-money laundering and countering terrorism financing.

More information on the conduct and other requirements can be found in the Part III of the FAA , Part IV of the FAR and the applicable Notices and Guidelines.

What if a financial adviser wants to conduct insurance broking activities under the Insurance Act (IA)?

A financial adviser may also carry out insurance broking activities. For more information on lodging a notification to commence insurance broking activities, please refer to the Insurance Broker Licensing and Registration page.

If you wish to find out the types of financial advisory activities an existing financial adviser is permitted to conduct, please refer to MAS’ Financial Institutions Directory, which contains an exhaustive list of financial institutions licensed or regulated by MAS, and the regulated activities they are authorised to provide.

Markets and Exchanges

Markets and exchanges are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the Securities and Futures (Organised Markets) Regulations .

Licensing:Approved exchange (AE) or recognised market operator (RMO)

Activities

An entity operating a market in Singapore for securities, derivatives contracts or units in a CIS, may be considered to be operating an organised market under Part II of the SFA. A person who operates an organised market must be regulated by MAS. As a general principle, markets that are systemically-important will be regulated by MAS as AEs. Other markets may be regulated as RMOs. AEs are required to comply with a higher level of statutory obligations than that required of RMOs.

Foreign entities operating markets offering services to participants in Singapore are subject to the recognition regime as RMOs where MAS places reliance on the home regulator for the supervision of the foreign entity. A key consideration for recognition as a foreign RMO is that the regulatory regime of home jurisdiction of the foreign entity should be comparable to the SFA, of which an important component is the application of the IOSCO Objectives and Principles of Securities Regulation by the home jurisdiction.

The definitions for the above regulated activity can be found in Part I of the First Schedule to the SFA and Part II of the SFA .

Regulations, Notices and Guidelines

For more details on key requirements, see the regulations, notices and guidelines below:

Clearing Houses

Clearing houses are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the Securities and Futures (Clearing Facilities) Regulations .

Licensing:Approved clearing house (ACH) or recognised clearing house (RCH)

Activities

An entity that seeks to offer clearing or settlement services in Singapore must be authorised by MAS as a clearing facility before it can commence operations. As a general rule, a Singapore corporation that operates a clearing facility will be deemed systemically important and regulated by MAS as an ACH. 

Foreign entities operating clearing houses offering services to participants in Singapore are subject to a recognition regime as RCHs where MAS places reliance on the home regulator for the supervision of the foreign entity. A key consideration for recognition as a RCH is that the regulatory regime of home jurisdiction of the foreign entity should be comparable to the SFA, of which an important criterion is the application of the Principles of Financial Markets Infrastructure standards by the home jurisdiction. There also has to be adequate arrangements for supervisory cooperation between MAS and the home regulator of the foreign clearing house.

The definitions for the above regulated activity can be found in Part II of First Schedule to the SFA and Part III of the SFA .

Regulations, Notices and Guidelines 

For more details on key requirements, see the regulations, notices and guidelines below:

Trade Repository

Trade repositories are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the Securities and Futures (Trade Repositories) Regulations .

Licensing: Licensed trade repository (LTR) or licensed foreign trade repository (LFTR)

Activities

A locally-incorporated entity that seeks to offer trading reporting services to allow participants to fulfil their obligations under MAS’ reporting mandate must be authorised by MAS as an LTR.

Foreign entities offering trade reporting services to allow participants to fulfil their obligations under MAS’ reporting mandate are subject to licensing as an LFTR. A key consideration for licensing a foreign entity as an LFTR is that the regulatory regime of home jurisdiction of the foreign entity should be comparable to the SFA, of which an important criterion is the application of the Principles of Financial Markets Infrastructure standards by the home jurisdiction.

The definitions for the above regulated activity can be found in Part IIA of the SFA .

Regulations

For more details on key requirements, see the regulations, notices and guidelines below:

Benchmark Administrator and Submitter

Benchmark Administrators and Submitters of designated benchmarks are licensed and governed under the Securities and Futures Act (SFA) and its subsidiary legislation, including the Securities and Futures (Financial Benchmarks) Regulations .

Licensing: Authorised benchmark administrator, authorised benchmark submitter and designated benchmark submitter

Activities

An entity administering a designated benchmark must require authorisation by MAS before it can commence operations unless exempted. An entity that provides information to the benchmark administrator in connection with a designated benchmark must also be subject to MAS’s regulations as a benchmark submitter unless exempted.

MAS may also designate a benchmark submitter as a designated benchmark submitter if the benchmark submitter’s participation and information submission is important to the functioning of a designated benchmark.

The definitions for the above regulated activity can be found in Part VIAA of the SFA.

Regulations

For more details on key requirements, see the regulations, notices and guidelines below: