On 24 October 2023, the Monetary Authority of Singapore (“MAS“) published the Consultation Paper on Repeal of Regulatory Regime for Registered Fund Management Companies (“Consultation Paper“) which (i) proposes to repeal the regulatory regime for Registered Fund Management Companies (“RFMCs“) as part of enhancing the regulatory regime for fund management companies (“FMCs“) and (ii) sets out MAS’ proposed transitional arrangements for existing RFMCs that intend to continue to carry on fund management business following the repeal. Existing RFMCs that are in operation may apply to become licensed fund management companies (LFMCs) that are restricted to serve accredited or institutional investors (“A/I LFMCs“). Feedback should be submitted by 31 December 2023 via the following link: https://go.gov.sg/rfmcrepeal.
The RFMC regime was introduced by MAS in 2012 to replace the previous Exempt Fund Manager (“EFM“) regime, to improve MAS’ regulatory oversight of fund managers and in recognition of the diversity of fund managers operating as EFMs. The RFMC regime was intended to make it easier for some of the EFMs to transition into a fully regulated regime. There are significant overlaps in the admission criteria and business conduct requirements for RFMCs and A/I LFMCs under the present law in areas such as risk management, asset custody, and asset valuation, with the main differences between the A/I LFMC and RFMC regulatory tiers being lower fees payable by RFMCs and the frequency and granularity of reporting requirements.
This Update spotlights the salient aspects of the new revised simplified regime after the repeal of the RFMC regime.
For more information, click here to read the full Legal Update.
