Capital Markets Services Licence (“CMS”)

SINGAPORE LICENSING

 

CMS licence is applicable in cases where a corporation that carries on a business in any of the following regulated activities: 

  • Dealing in Securities,
  • Trading in futures contracts;
  • Leveraged foreign exchange trading;
  • Advising on Corporate Finance;
  • Fund Management;
  • Real estate investment trust management;
  • Securities financing;
  • Providing custodial services for securities;
  • Providing credit rating services;
  • Securities based crowd-funding

Above may be subject to additional requirements

An application is made to the Monetary Authority of Singapore (“MAS”) to review, approve and grant the relevant licence.

 

CMS General Information and Requirements:

Specific types of regulated activities have additional criteria.

 

(a) Total Timeframe for application:

  • ~6  months (2 months preparation; 4-6 months MAS review/decision)

(b) Location:  

  • A corporation in Singapore; or Singapore Branch of foreign corporation with good ranking in home-country, provided that branch would be subject to proper management oversight for compliance purposes.
  • Must have permanent physical office in Singapore appropriately staffed (at least 2 full time employees)

(c) Board of Directors:

  • Minimum of 2 members; at least one of whom is the CEO (must satisfy additional requirements) and a resident in Singapore; and all of which must satisfy the Fit and Proper Criteria.

(d) Shareholding:

  • UBO majority Singapore citizens or Singapore permanent residents.

(е) Management Expertise:

  • 3 corporate finance professionals one of whom must be a substantial shareholder with 10 year acceptable track record; the other 2 with 5 years.

(f) Summary of Documents required:

  • Letter of Responsibility / Letter of Undertaking (where applicable), Declarations by Directors; Business Profile in accordance with records of ACRA; Shareholding Chart; Group Structure; Organisational Chart with reporting lines;  Financial Statements; Application Form, Notices and any other information deemed necessary by MAS including, however not limited to Business Plan, Outsourced Services and Counterparties, Anti-money laundering manual, internal controls and procedures manual, Executive Directors’ CVs, and Clean Criminal record certificates and non-bankruptcy certificates.

(g) Minimum Capital Requirements:

CMS Base Capital Requirements for Dealing in Securities:

Dealing in Securities (Clearing member for securities) S$5,000,000.00
Dealing in Securities (non-clearing member for securities) S$1,000,000.00
Dealing in Securities (non-member) S$1,000,000.00
Dealing in Securities (introducing broker) S$500,000.00
Dealing in Securities (restricted broker) S$250,000.00
Dealing in Securities (others) S$50,000.00

 CMS Base Capital Requirements for Trading in Futures Contracts:

Trading in Futures Contracts (Clearing member) S$5,000,000.00
Trading in Futures Contracts (non-clearing member) S$1,000,000.00
Trading in Futures Contracts (non-member) S$1,000,000.00
Trading in Futures Contracts (introducing broker) S$500,000.00
Trading in Futures Contracts (restricted broker) S$250,000.00
Trading in Futures Contracts (others)  S$50,000.00
Trading in Futures Contracts (clearing member limited to specified commodity futures contracts) S$1,000,000.00

CMS Base Capital Requirements for Trading in Commodities Futures Contracts:

Trading in  specified commodity futures contracts only (Clearing member) S$1,000,000.00
Trading in  specified commodity futures contracts only (non-clearing member) S$500,000.00
Trading in  specified commodity futures contracts only (non-member) S$500,000.00
Trading in  specified commodity futures contracts only (introducing broker) S$250,000.00
Trading in  specified commodity futures contracts only (restricted broker) S$250,000.00

 CMS Base Capital Requirements for other regulated activities under SFA:

Carrying out leveraged foreign exchange trading S$1,000,000.00
Carrying out securities financing S$1,000,000.00
Providing custodial services for securities S$1,000,000.00
Advising on corporate finance S$250,000.00
Providing credit rating services S$250,000.00

 CMS minimum Professional Indemnity Insurance fiscal Requirements:

Dealing in Securities and Trading in futures contracts

Member firms: 50% of revenue subject to CAP of S$25m

Non-Member firms: 50% of revenue subject to CAP of S$10m
Advising on Corporate Finance (including BCF) Provided upon request

 

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