MAS Proposes to Streamline Regulatory Framework for Fund Managers

MAS Proposes to Streamline Regulatory Framework for Fund Managers

by October 25, 2023

The Monetary Authority of Singapore (MAS) is proposing to streamline the regulatory framework for fund managers by repealing the Registered Fund Management Companies (RFMCs) regime. Existing RFMCs will be approved as Licensed Fund Management Companies (LFMCs) upon application.

The RFMC regime was introduced in 2012 to facilitate the transition of Exempt Fund Managers (EFMs) into a fully regulated regime.

However, since then, the business models and risk profiles of RFMCs and accredited or institutional investors (A/I LFMCs) have increasingly converged, making the regulatory distinction between the two less meaningful.

MAS is proposing a simplified process for RFMCs that wish to apply to become A/I LFMCs. RFMCs will only need to submit a form during a prescribed application window, setting out their assets under management and confirming their ability to comply with the regulatory requirements for A/I LFMCs.

The regulator will retain the limit of S$250 million on the managed assets of RFMCs that transition to become A/I LFMCs. However, RFMCs can apply to MAS to uplift the limit on managed assets after the transition, if they have plans to grow their managed assets.

RFMCs that apply to become A/I LFMCs will not have to pay any application fees.

MAS will conduct a briefing for RFMCs to address any uncertainties over the transitional arrangements prior to the repeal of the RFMC regime.

Interested parties can submit their comments about the consultation by 31 December 2023.