Knowledge & Insights

The Monetary Authority of Singapore ("MAS") has published its response to feedback provided on its Consultation Paper on the repeal of the regulatory regime for Registered Fund Management Companies ("RFMC").

In its response, MAS has indicated that it is targeting to repeal the existing RFMC regime on 1 August 2024. Existing RFMCs which intend to continue to conduct fund management activities must apply to be a licensed fund management company (restricted to serving accredited and institutional investors) by submitting the prescribed Form 1AR. MAS will inform RFMCs on the outcome of their application within a month and expects to issue CMS licences to the successful applicants by end of July 2024.

As the transition process (from a RFMC to a licensed fund management company) has been simplified, MAS will also impose a cap on the AUM of these newly licensed fund management companies via a licence condition. The fund management company may subsequently apply to MAS for this cap to be lifted – MAS will consider various factors, including the applicant's compliance track record, internal controls, risk management and compliance arrangements, stability of its board and senior management team, and the extent of any changes to the applicant's business model and investment strategy. To provide guidance on the transition process, MAS will organise a virtual briefing in April 2024 for existing RFMCs as well. MAS' response to the feedback can be accessed here.

Our Financial Services Regulatory Practice has advised on a broad range of issues that concern Financial Institutions, including licensing of fund managers and other capital markets intermediaries. Reach out to our Financial Services Regulatory Practice Partners Elaine Chan, Rosabel Ng, Chan Jia Hui, Tian Sion Yoong to understand more about these latest developments, or find out more about our practice here.