Showing 25 Q&A Sections for "securities"

  • Overview of digital tokens
    • Universal
      • What is a security token?
        "A Security Token is similar to owning stock or an equity interest in an asset, but it can also be a debt instrument. As the name indicates, so-called Security Tokens are themselves securities.
        FinReg
    • Singapore
      • Tax treatment of digital tokens in Singapore
        2.3 The general tax treatment for transactions involving the use of payment tokens, utility tokens and security tokens are as follows: Type of digital token Tax Treatment Payment token Payment token is regarded as an intangible property. Consequently, transactions involving the use of payment tokens as payment for goods or services are viewed as barter trade and the value of goods or services transferred should be determined at th
        GYK Group
  • Nature of Securities
    • Singapore
      • Definition of Securities in Singapore
        Securities generally means shares, units in a business trust or debentures. The Securities and Futures Act 2001 (SFA) prescribes the following definition of securities. “securities” means — (a) shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership; (b) debentures; or (c) any other product or class of products as may be prescribed,
        FinReg
      • What are securities-based derivatives contracts?
        Securities-based derivatives contract means any derivatives contract of which the underlying or any of the underlying is a security or a securities index.
        FinReg
  • Regulations for Offers of Securities (prospectus requirements)
    • Singapore
      • Do I need a prospectus to do crowd sourcing?
        Currently, any offer of securities is required to be made in or accompanied by a prospectus unless it qualifies for an exemption under Part XIII of the SFA. Further, intermediaries which deal in securities, including an intermediary operating an SCF (securities-based crowdfunding) platform which facilitates offers of securities, are required to hold a Capital Markets Services (“CMS”) licence under the SFA, unless exempted.
        FinReg
      • What is a prospectus and what are the requirements of issuing one?
        A prospectus is a document that presents a business to the investing public. It includes information such as the businesses assets and the nature of the company in order to give investors an informed decision on whether or not to purchase the companies securities. MAS has the final say as to whether or not to register or decline a prospectus if it does not comply with the SFA or for any other specified reasons. Legal Definition “prospectus” means any prospectus, notice, circular, material, a
        FinReg
      • Must an offeror of securities display cautionary statements on the internet?
        5.1 For offers made through the Internet, the offeror should ensure that cautionary statements are displayed to a potential investor before the potential investor is able to apply to subscribe for the securities, securities-based derivatives contracts or units in a CIS.
        FinReg
      • What should a prospectus for an offer of securities contain?
        Detailed provisions of what a prospectus must contain can be found under section 243 of the Securities and Futures Act (SFA); specifically subsection (3) below. 243.—(1) A prospectus for an offer of securities or securities-based derivatives contracts shall contain — (a) all the information that investors and their professional advisers would reasonably require to make an informed assessment of the matters specified in subsection (3); and (b) the matters prescribed by t
        FinReg
      • Are certain offers of securities exempted from prospectus requirements?
        Prospectus registration requirements do not apply to certain offers of securities or securities-based derivatives contracts (“exempted offers ”). These offers include: Offers where the minimum transaction amount is S$200,000 Small Offers – Total amount raised is S$5 million or less in 12 months Private Placement – Offers made to no more than 50 persons in 12 months Offers targeted at accredited or institutional investors
        FinReg
      • How long is a prospectus valid for?
        250.—(1) No person shall make an offer of securities or securities-based derivatives contracts, or allot, issue or sell any securities or securities-based derivatives contracts, on the basis of a prospectus or profile statement after the expiration of the period referred to in subsection (3). (3) The period under subsection (1) or (2) is — (a) in a case where the securities or securities-based derivatives contracts are debentures or units of debentures issued under a debenture
        FinReg
  • Nature of Moneylending services
    • Singapore
      • How is lending-based crowdfunding regulated? Does it fall under the Moneylenders Act?
        "Generally, securities-based fundraising from the public through equity-based crowdfunding is regulated by MAS under the SFA and the FAA. Therefore, such activity might constitute a regulated activity that requires a licence, but much will depend on the precise model." from the public through lending-based crowdfunding, or P2P lending, is regulated by MAS under the Securities and Futures Act (Cap. 289) (the “S
        FinReg
  • Nature of Cryptocurrencies
    • Singapore
      • What are the common ways crypto assets are used in Singapore?
        As for securities tokens, they are subject to the same securities laws as traditional securities. Hence, an exchange that enables trading in securities tokens is regulated under the Securities and Futures Act and subject to the same rules, especially on fair, orderly and transparent trading, as any securities exchange. The size of the securities tokens market today is also small.
        FinReg
  • Nature of Digital Payment Tokens (DPTs)
    • Singapore
      • Are crypto derivatives regulated in Singapore?
        MAS plans to regulate crypto derivative products offered to institutional investors, which will be listed and traded on approved exchanges and will be subject to the regulatory requirements and supervisory oversight under the Securities and Futures Act (SFA). Additional regulations may also apply under the PSA, including compliance with AML/CFT regulations.
        Holland & Marie
  • MAS outlook on Cryptocurrency
    • Singapore
      • Are cryptocurrencies and other crypto assets regulated in Singapore? If so, how are they regulated?
        They are not legal tender or securities. Persons that buy or sell cryptocurrencies, or facilitate the exchange of cryptocurrencies may be regulated under the Payment Services Act 2019 for money-laundering and terrorism financing risk only." "Offers of digital tokens that are securities may be regulated or exempted under the Securities and Futures Act, e.g. if they are offered to accredited or institutional investors only, or are exempted small offers and private placements.
        FinReg
      • What are MAS' views on blockchain and distributed ledger technology (DLT)?
        researched these technologies in Project Ubin, "a collaborative project with the industry to explore the use of Blockchain and Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities." "The project aims to help MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation.
        FinReg
  • Overview of Crypto trading
    • Singapore
      • Is DBS's digital exchange regulated?
        Yes, DBS DIGITAL EXCHANGE PTE. LTD. holds a Recognised Market Operator licence, which falls under the capital markets sector. "DBS, Southeast Asia's biggest bank, is to set up an exchange for digital assets, including cryptocurrencies, that will provide tokenisation, trading and custody services to institutional and accredited investors. The DBS Digital Exchange will use blockchain technology to provide a platform for fundraising through asse
        FinReg
      • How has MAS enforced their regulation towards crypto exchanges?
        It also issued a warning to eight crypto exchanges, stipulating that they inform the regulator before trading cryptocurrencies that are considered securities. This has meant that trading cannot commence until they have been appointed as an approved exchange or market operator." 2020
        FinReg
  • Regulations for Single Family Offices
    • Singapore
      • What are designated investments?
        stocks and shares of any company, other than a company that is — (i) in the business of trading or holding of Singapore immovable properties (other than the business of property development); and (ii) not listed on a stock exchange in Singapore or elsewhere; bonds, notes, commercial papers, treasury bills and certificates of deposit, but excluding those which are not qualifying debt securities and which are issued by any company that is — (i) in the business of trading or holding o
        EisnerAmper Singapore
  • Regulations for Fund Management Companies
  • Nature of Crowdfunding
    • Singapore
      • What is securities based crowdfunding?
        "The third type is securities-based crowdfunding, which is further divided into lending-based crowdfunding and equity-based crowdfunding." "Lending-based crowdfunding is when individuals lend money to a company and the company commits to repay the loan at pre-determined intervals and interest rate." "Equity-based crowdfunding is when individuals invest in shares sold by a company and receive a share of the profits in the form of a dividend or distribution." Source: Rivkin
        FinReg
  • Offers of Security Tokens
    • Singapore
      • Are offers and issues of security tokens regulated?
        "In a statement issued by the MAS on 1 August 2017, it clarified that the offer or issue of digital tokens in Singapore will be regulated by the MAS if the digital tokens constitute products regulated under the SFA. For example, where digital tokens represent ownership or security interest over an issuer’s assets or property, an offer of such tokens may be considered an offer of shares or units in a collective investment scheme under the SFA."
        FinReg
  • Nature of NFTs
    • Singapore
      • What type of non-fungible tokens (NFTs) will be regulated like securities?
        NFTs might be regulated as securities if they fit the definition of a "digital token", and the definition of a security under the Securities and Futures Act. "A digital token is a cryptographically-secured representation of a token-holder's rights to receive a benefit or to perform specified functions. A virtual currency is one particular type of digital token, which typically functions as a medium of exchange, a unit of account or a store of value."
        FinReg
  • Nature of Security Tokens
    • Singapore
      • What kind of digital tokens are securities under Singapore law?
        Digital tokens which fall within the definition of “securities” under the Securities and Futures Act (Cap. 289). "Digital tokens which fall within the definition of “securities” under the Securities and Futures Act (Cap. 289), including the following: (a) shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership; (b) debentures; or (c) any other product or class o
        KGP Legal LLC
  • Regulations for E-wallets
  • Regulations for activities relating to E-money
  • Fund Management Company (FMC): Application
  • Regulations for all Capital Markets Services
    • Singapore
      • Are there minimum entry and examination requirements for representatives of holders of CMS licence?
        Yes. MAS Notice SFA 04-N09 sets out the entry, examination and continuing education requirements for representatives, and the obligations of the financial institutions regarding their representatives. This Notice is issued pursuant to section 101 of the Securities and Futures Act (Cap. 289) (the “Act”) to the holders of a capital markets services (“CMS”) licence, exempt financial institutions (“exempt FIs”) and appointed represent
        FinReg
  • Overview of Capital Markets Services in Singapore
    • Singapore
      • How are capital markets regulated?
        According to Ravi Menon's speech on Singapore's approach to the regulation of capital markets The purpose of regulating capital markets is to safeguard the interests of investors, ensure that risks are kept to an acceptable level, promote efficient price discovery, and maintain confidence in the market. In Singapore, the regulatory framework for capital markets is underpinned by the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA). Consumers who invest in products or deal w
        FinReg
      • What type of investment products are regulated in Singapore?
        Any investment products that constitute “capital market products” under the Securities and Futures Act (Cap. 289). Any investment products that constitute “capital market products” under the Securities and Futures Act (Cap. 289), including securities, units in collective investment schemes, derivatives contracts, and spot foreign exchange contracts for the purposes of leveraged foreign exchange trading.
        KGP Legal LLC
      • What type of financial services are regulated in Singapore? Who needs a Capital Markets Services licence?
        Regulated activities under the Securities and Futures Act (Cap. 289), and financial advisory services under the Financial Advisers Act (Cap. 110). Regulated activities under the Securities and Futures Act (Cap. 289), and financial advisory services under the Financial Advisers Act (Cap. 110), including the following: 1. Dealing in capital markets products 2. Advising on corporate finance 3. Fund management 4. Real estate investment trust management 5. Product financing 6. Providing credit ratin
        Millennium Law LLCKGP Legal LLC
  • Regulations for Registered Fund Management Companies (RFMCs)
    • Singapore
      • What are the regulations in Singapore that apply to Registered Fund Management Companies (RFMCs)?
        Some of the key relevant regulations are: Securities and Futures Act (Cap. 289) (SFA). Specifically, the following parts of the SFA: Part IV Holders of Capital Markets Services (CMS) Licence and Representatives Part IX Supervision and Investigation Securities and Futures (Licensing and Conduct of Business) Regulations (LCBR) (Rg. 10) Registration conditions imposed on Registered Fund Management Companies (RFMCs) Guidelines on L
        FinReg
  • Nature of organised markets
    • Singapore
      • What are some examples of AEs and RMOs?
        Approved Exchange: Description of the arrangement: A corporation seeks to operate a securities market in Singapore. The person provides proprietary trading terminals for licensed intermediaries to enter orders and effect transactions on the securities market.
        FinReg
  • Multi Family Office
    • Singapore
      • 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. Licensing 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 licens
        EisnerAmper Singapore
  • Initial Coin Offerings (ICOs)
    • Singapore
      • What is an initial coin offering (ICO)? Is it regulated?
        Offers of sale of digital tokens are regulated in Singapore if the digital tokens constitute "capital markets products" under the Securities and Futures Act ("SFA"). When a digital token constitutes a "capital market products", the offer of the digital token may only be made to the retail public if the offer complies with, among other things, the prospectus requirements set out in Part XIII of the SFA, unless the offer is made pursuant to the exemptions prescribed in the SFA.
        Withers KhattarWong LLPRajah & Tann Singapore LLP
  • Staffing Regulations for all fund management companies and fund managers (LFMC, RFMC, VCFM)
    • Singapore
      • Business Conduct Requirements for Representatives
        These requirements are set out under FAA-N13 Notice on Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers (the “FAA Notice”) and SFA 04-N09 Notice on Minimum Entry and Examination Requirements for Representatives of Holders of Capital Markets Services Licence and Exempt Financial Institutions (the “SFA Notice”).
        FinReg
  • Nature of Single Family Offices (SFOs)
    • Singapore
      • How are Single Family Offices regulated in Singapore?
        SFOs can be exempted from licensing under the Securities and Futures Act (SFA) and the Financial Advisors Act (FAA) if it provides fund management and financial advisory services to related corporations. If an SFO is not sure whether it is exempted from licensing requirements, the SFO may seek a licensing exemption from MAS under section 99(1)(h) of the SFA.
        EisnerAmper Singapore