Singapore Financial Licenses
Singapore is one of the leading international financial centers in the South-East Asian region. Obtaining a Singapore license can provide a tax efficient corporate structure in order to conduct sound investments. Following the financial crisis circa 2008, that brought worldwide attention to the financial industries regulatory frameworks and more specifically to the fund management industry; as a leading jurisdiction, Singapore started to implement measures in order to strengthen the jurisdictions regime in order to regulate the local fund management industry, therefore obtaining a Singapore license gives the company an additional reputation boost.
Click here to read more about the benefits of Singapore as a jurisdiction.
Registration & Licensing Fund Management Companies (RFMC)
Fund management companies are licensed under and governed by the Singapore Finance Companies Act and their key function is to provide fixed and saving deposits as well as credit facilities to both individuals and corporations. Registered Fund Management Companies in Singapore enables companies to conduct business in fund management with up to 30 qualified investors (a maximum of 15 can also be funds or limited partnership fund structures) and only where the total value of the assets managed does not exceed SGD $250 million.
Would an RFMC be the correct license for your business?
- They cannot acquire foreign currency denominated stocks, shares or debt securities.
- No more than 30 qualified investors (of which no more than 15 may be funds or limited partnership fund structures).
- The total value of the assets managed does not exceed SGD $250 million.
They may expand their scope of activities subject to MAS’ approval.
Read more about base capital & investor requirements: Singapore RFMC License Requirements.
Singapore Capital Markets Service License (LFMCs)
There are 2 categories of CMS Licence holders for fund management (known as LFMCs):
- Retail LFMC which are permitted to carry on business in fund management with all types of investors.
- A/I LFMC which are permitted to carry on business in fund management only with qualified investors.
Obtaining a Singapore CMS licence is suitable in situations when a corporation that carries out business in any of the following areas:
- 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.
Read more about the minimum capital investment requirements: CMS investment criteria.
Feel free to contact us for more information or support.