The Monetary Authority of Singapore has proposed arrangements for a smooth transition for existing Registered Fund Management Companies (RFMC) consequent to the intended repeal of the RFMC regulatory regime. The regime repeal and transitional arrangements will be set out in subsidiary regulations to the Securities and Futures Act 2001.
The RFMC framework was established after the Exempt Fund Managers (EFM) regime was repealed to improve MAS' regulatory control over fund managers, thereby aiding some EFMs transition into a fully regulated regime.
The admission criteria and business conduct requirements of RFMCs and licensed fund management companies (LFMCs) serving only accredited or institutional investors (A/I LFMCs) are mostly similar. However, as RFMCs are limited to serving up to 30 accredited or institutional investors and to managing not more than S$250million of assets (AUM Cap), there are some differences in financial, reporting and appointment requirements for RFMCs and A/I LFMCs.
As many RFMCs have changed status to become LFMCs, MAS has taken the view that the RFMC framework has served its purpose of transitioning EFMs. Accordingly, MAS will repeal the RFMC regime from 1 August 2024 to harmonise and simplify the requirements for fund management companies. It has already ceased accepting applications for registration of RFMCs since January 2024.
MAS intends to implement the following transitional arrangements for existing RFMCs:
Existing RFMCs that wish to continue their operations should be mindful of the transition deadlines and take the necessary steps to comply with the regulatory requirements applicable to licensed fund management companies.
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Disclaimer: This article is for general information only and does not constitute legal advice.
