Fund Management Company (FMC): Application
Who is exempt from the requirement to hold a CMS licence for fund management?
If the scope of a company’s fund management activities falls within certain categories, it may be eligible for an exemption from licensing or registration to conduct fund management.
Examples of such companies are those that:
- Manage a pool of immovable assets for accredited and institutional investors;
- Manage funds for related corporations; or
- Manage moneys belonging to a single group of related family members.
In certain scenarios, companies may need to apply to MAS specifically for exemption if they do not fall neatly within the pre-defined scope of exclusion.
Persons who are exempted under Paragraph 5(1) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations.
"Persons who are exempted under Paragraph 5(1) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations, including but not limited to the following:
1. A corporation which carries on business in fund management for or on behalf of any of its related corporations, so long as in carrying on such business, none of the capital markets products or spot foreign exchange contracts being managed, are held on trust for another person by the second-mentioned corporation, the result of any investment contract entered into by the second-mentioned corporation or beneficially owned by any person, other than the first-mentioned or second-mentioned corporation;
2. A person who carries on business in fund management in Singapore on behalf of qualified investors where the assets managed by it comprise securities issued by one or more bodies corporate or interests in bodies unincorporate, where the sole purpose of each such body corporate or body unincorporate is to hold, whether directly or through another entity or trust, immovable assets;
3. A person who carries on business in fund management in Singapore by managing the property of, or operating, a collective investment scheme the property of which does not include any capital markets products and all of the participants of which are qualified investors; and
4. A person who carries on business in fund management in Singapore by managing the property of, or operating, a collective investment scheme the property of which does not include any capital markets products and the units of which are not the subject of any offer or invitation for subscription or purchase on or after 8 October 2018."
Paragraph 5(1) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations
"A person whose dealing in securities is solely incidental to his carrying on business in fund management can be exempted from the requirements to hold a CMSL to carry on business in dealing in securities."
"A CMSL holder is exempt from the requirement to hold a financial adviser’s licence to act as a financial adviser in Singapore in respect of any financial advisory service provided that the CMSL holder has notified the MAS of its intention to commence business as an exempt financial adviser in respect of the relevant financial advisory service."
"A Registered Fund Management Company is exempt from the requirement to hold a financial adviser’s licence in respect of the marketing of any collective investment scheme that is managed by it in the course of carrying on its business in fund management for “accredited investors” and/or “institutional investors”."