Compliance
Compliance Corner: Monetary Authority Of Singapore, Funds Regulation Changes
The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.
The Monetary Authority of Singapore
The Monetary
Authority of Singapore last week launched a public
consultation on its proposal to streamline the regulatory
framework for fund managers.
The Registered Fund Management Companies (RFMCs) regime will be
repealed, and existing RFMCs that are in operation will be
approved as Licensed Fund Management Companies (LFMCs) upon
application.
The RFMC regime was introduced in 2012, following the repeal of
an earlier regime for Exempt Fund Managers to enable EFMs to
transform into a fully regulated regime. EFMs in existence at
that time had the option to apply to become either an RFMC or an
LFMC. RFMCs are subject to lighter requirements in terms of how
frequently they report, and the level of detail they must
provide.
MAS said that 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 regulator said existing RFMCs can continue operating as usual
during the transition process; and MAS proposes a simplified
process for RFMCs that wish to apply to become A/I LFMCs.
Interested parties can submit comments to the consultation by 31 December 2023.
