Multi Family Office

How are Multi family offices regulated in Singapore?

A Multi-Family Office (MFO) usually provides fund management and financial advisory services to more than 1 family office, therefore the licensing exemptions from the SFA and the FAA will not be applicable.

The MFO will have to apply to the MAS for a Capital Market Services Licence.

Capital Market Services License (CMS)
A company must hold a capital markets services (CMS) licence to conduct activities regulated under the Securities and Futures Act. Individuals representing CMS licensees or exempt financial institutions need to be appointed as representatives.

Who needs to apply?
If your company wishes to conduct regulated activities under the Securities and Futures Act (SFA) , it must hold a CMS licence. Individuals conducting regulated activities on behalf of CMS licensees or exempt CMS entities (such as banks) need to be appointed as representatives.

These regulated activities are:

  • Dealing in capital markets products
  • Advising on corporate finance
  • Fund management
  • Real estate investment trust management
  • Product financing
  • Providing credit rating services
  • Providing custodial services for securities

Capital markets products include securities, units in a collective investment scheme (CIS), over-the-counter (OTC) derivatives, exchange-traded derivatives and spot foreign exchange for the purposes of leveraged foreign exchange trading.

Companies which may be required to hold a CMS licence include broker-dealers, corporate finance advisers, credit rating agencies, real estate investment trust (REIT) managers, fund managers and securities-based crowdfunding (SCF) operators.