MAS Implements Enhanced Regulatory Regime For Fund Management Firms

Singapore, August 7 (Bernama) -- The Monetary Authority of Singapore (MAS) has announced the implementation of an enhanced regulatory regime for fund management companies (FMCs) effective today.

Amendments have been made to the Securities and Futures (Licencing and Conduct of Business) Regulations, Securities and Futures (Financial and Margin Requirements) Regulations and Financial Advisers Regulations, said the Central Bank in a statement.

Under the enhanced regulatory regime, MAS said all FMCs would have to meet enhanced business conduct and capital requirements.

These 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 commensurate with the type and size of investments managed by the FMCs.

A new category of Registered Fund Management Companies (RFMC) will replace the current Exempt Fund Manager (EFM) regime.

RFMCs may serve up to 30 qualified investors and manage up to S$250 million in assets under management. All other FMCs will have to apply for a licence.

-- BERNAMA