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The Monetary Authority of Singapore (MAS) has initiated a public consultation on proposed changes to the regulatory framework governing fund managers. This is part of the MAS’s efforts to streamline the processes for fund management companies, particularly for those transitioning from Registered Fund Management Companies (RFMCs) to Licensed Fund Management Companies (LFMCs).
The consultation, launched on October 24, 2023, aims to make the regulatory environment more efficient as Singapore continues to attract significant asset inflows due to its political stability, favorable tax policies, and fund-friendly regulations. Total assets under management (AUM) in Singapore rose 16% to S$5.4 trillion in 2021, exceeding global growth in AUM.
MAS is proposing a simplified process for existing RFMCs, which have similar business conduct and admission criteria to A/I LFMCs, to become licensed fund managers. The RFMC regime, introduced in 2012, will be repealed, as the distinction between RFMCs and A/I LFMCs has become less relevant over time.
The central bank expects RFMCs transitioning to LFMCs to declare their assets under management and confirm their ability to meet the new regulatory requirements. While a S$250 million limit on managed assets will remain in place initially, companies may apply for a higher limit thereafter. Comments on the proposal are open until December 31, 2023.
