Qualified Investors and manage up to S$250 million in assets under management. All other fund management companies will have to apply for a license. The FMCs thus licensed can either be a A/I licensed FMC or Retail Licensed FMC.
The revised regime requires FMC to follow some operational practices that are aimed at improving their transparency. Rules requiring independent custody and valuation of investor assets, as well as requirements for FMCs to undergo independent annual audits by external auditors are some of the measures in this direction. The revised regulations will have severe cost impacts in the FMCs in Singapore; however it must be noted that in light of the post-financial crisis, the asset management industry globally is facing tighter regulations. The recent enhancements align the Singapore’s FMC regulatory regime more closely with the regulatory framework of other financial hubs, such as Hong Kong.
The region’s strong growth prospects in the long term continue to attract capital investments into Asia leading to wealth accumulation among individuals and corporate. The regional demographics also underscore the prospects of the fund management industry. Against this backdrop, Singapore, in order to sustain its position as a leading wealth management center, must streamline and enhance its regulatory framework to ensure the interest of the investors, while promoting the growth of FMCs. The objective of the recent revamp is to ensure transparency and competence of fund managers and thereby to augment investors’ confidence.
Commenting on the impact of the new regime Mr. Bakhda added, “Robust risk management practices, stronger corporate governance frameworks and enhanced transparency, and higher disclosure standards are the need of the hour. The recent enhancements will bolster the confidence of investors who are currently risk averse.”
“Besides the escalation of startup costs and compliance costs, there are distinct advantages as the tightened rules will act as a stimulant for managers to improve operational processes and governance and, as a result their productivity and marketability. The new regulations will undoubtedly improve the quality of new entrants and to some extent the resultant mergers and exits will consolidate the FM sector in Singapore. Established in 1998, Rikvin has since partnered with thousands of investors, entrepreneurs and professionals in their pursuit to access business opportunities overseas. Rikvin’s areas of expertise include Singapore subsidiary registration, offshore company setup, accounting, taxation, Singapore payroll services and other related corporate services. Rikvin is also a licensed employment agency with the Ministry of Manpower (MOM) and offers a full spectrum of Singapore employment pass services for foreign professionals who wish to relocate to Singapore.
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For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/8/prweb9810821.htm