The Monetary Authority of Singapore said in anticipation of the changes, which come into effect on 7 August, it had made amendments to the Securities and Futures (Licensing and CoB) Regulations, Securities and Futures (Financial and Margin Requirements) Regulations and Financial Advisers Regulations.
Under the new regime, the MAS said all fund management companies (FMCs) will have to meet enhanced business conduct and capital requirements. These will include rules requiring independent custody and valuation of investor assets, as well as requirements for FMCs to undergo independent annual audits by external auditors and having an adequate risk management framework which is commensurate with the type and size of investments managed by the FMC.
Another requirement is that at least two representatives of the company with experience of the financial services industry live in the city/state.
The MAS has also introduced a new category of “Registered Fund Management Companies” which will replace the current Exempt Fund Manager (EFM) regime. These RFMCs are able to serve up to 30 Qualified Investors and manage up to S$250m in assets under management, before getting a licence. All other FMCs will have to apply for a license.
