Singapore central bank consults on regulatory structure for fund managers

(Reuters) – The Monetary Authority of Singapore (MAS) on Tuesday launched a public consultation on its proposal to streamline the regulatory framework for fund managers.

The country’s central bank is proposing a simplified process for existing registered fund management companies (RFMCs) that wish to apply in order to become licensed fund management companies (LFMCs).

RFMCs have similar admission criteria and business conduct requirements as LFMCs that serve only accredited or institutional investors (A/I LFMCs).

The RFMC regime, introduced in 2012, will be repealed as all existing registered fund managers get approved as licensed fund management companies.

“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,” the MAS said in a statement.

RFMCs will have to declare their assets under management and confirm their ability to comply with the required regulatory requirements under the new framework, it said.

The central bank will, however, retain the S$250 million ($183.03 million) commitment limit on the managed assets of these RFMCs that transition to licensed fund managers.

MAS had in 2020 said it would be committing S$250 million over the next three years to enhance an existing scheme as part of efforts to accelerate growth in the country’s financial sector.

($1 = 1.3659 Singapore dollars)

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