On October 24, MAS launched a comprehensive public consultation to streamline the regulatory norms for fund managers. The proposed changes involve phasing out the Registered Fund Management Companies (RFMC) regime. This is a crucial move to reinforce regulatory oversight and enhance the standards of the industry.
Introduced in 2012, the RFMC regime succeeded the Exempt Fund Managers (EFMs) regime. It went a long way in enhancing regulatory oversight. MAS is proposing that existing RFMCs re-register as Licensed Fund Management Companies (LFMCs), to align with current industry standards and cater to accredited or institutional investors (A/I LFMCs).
Transitioning Process and Key Changes
Existing RFMCs interested in becoming A/I LFMCs will be required to submit a detailed form within a prescribed application window. This form will specify their assets under management and confirm their commitment to adhere to regulatory requirements established for A/I LFMCs.
RFMCs can continue their operations as usual during the transition period. MAS will retain the SGD 250 million limit on managed assets and a maximum of 30 accredited or institutional investors for RFMCs. RFMCs opting for this transition will not incur any application fees. This will facilitate a smooth transition and encourage the participants of the market to adapt to the evolving regulatory norms.
According to MAS, the RFMC regime has helped in the transition from the EFM regime. A number of RFMCs have become A/I LFMCs, and new entrants are willing to carry out management in Singapore. They are not interested in applying to be RFMCs, but A/I LFMCs.
Next Steps
Participants of the industry can provide their valuable feedback and insights on these proposed changes to MAS till December 31. This brings an opportunity for stakeholders to contribute to regulatory adjustments to further refine them.
At the IMC Group, we understand the significance of staying informed and engaged in regulatory discussions. We encourage our partners to actively participate in the consultation process. This ensures that they can consider diverse perspectives in shaping the future of fund management in Singapore.
