Capital Markets Services: Licence application
Capital Markets Services licence application: Requirements and Assessment criteria
When assessing an application to be an RFMC, LFMC or VCFM, MAS takes into account factors such as:
- Fitness and propriety of the applicant, its shareholders and directors.
- Track record and fund management expertise of the applicant and its parent company or major shareholders.
- Ability to meet the minimum financial requirements prescribed under the SFA.
- Strength of internal risk management and compliance systems.
- Business model/ plans and projections and the associated risks.
The company will need to appoint the following individuals:
- Minimum of 2 directors, at least one is resident in Singapore;
- Chief Executive Officer with least 10 years of relevant experience and is resident in Singapore;
- Minimum of 2 full-time Singapore-based individuals for each regulated activity (except REIT management). Such individuals are required to be appointed as representatives under the SFA.
Other requirements:
- Application must be for a corporation and its primary business activity must be one of the regulated activities specified in the Second Schedule to the Securities and Futures Act.
- Evidence of a positive track record, management skills, and financial soundness over the preceding five years. This also applies to any parent company of major shareholders.
- Have business plans and future projections in place.
- Adequate internal compliance systems.
- Ability to satisfy the minimum financial requirements which are listed in the Securities and Futures Act.
- Personal status of the applicant as well as those of employees, officers, and substantial shareholders.
- Approval from Monetary Authority of Singapore (MAS) to hire a CEO or Director who is a Singaporean resident.
- At least two full-time employees in each of the regulated activities for which the corporation is seeking a license. Each of these employees will also need to hold a Representative’s License for the activities as required by the Securities and Futures Act.
- If the applicant is applying for the license in order to deal in securities or trade in futures contracts, the applicant must have cumulative shareholders’ funds of S$200 million for securities dealing, and S$100 million for futures contract trading.
- If the applicant is applying for the license in order to engage in fund management, the applicant must have at least S$1 billion worth of global funds under management.
- If the applicant is applying for the license in order to engage in fund management or the advising on corporate finance matters of both, the Monetary Authority of Singapore (MAS) may decide to impose a license condition – one that specifies that the applicant has to purchase a Professional Indemnity Insurance policy and is in compliance with the basic requirements as stated by MAS.
- If the applicant is applying for a license in order to engage in fund management or advising on corporate finance matters of both, the Monetary Authority of Singapore (MAS) may decide to impose a license condition – one that specifies that the applicant has to purchase a Professional Indemnity Insurance policy and is in compliance with the basic requirements as stated by MAS."