Enhancing Regulatory Regime for Fund Management Companies
MAS issued a consultation paper on the proposed changes to the regulatory regime for fund management companies in April 2010. The proposals aimed to enhance regulatory oversight over fund management activities in Singapore and to formalise industry best practices. This would ensure that our regulatory regime keeps pace with global developments and would help to promote the sustainable growth of Singapore's fund management industry. Among the key proposals were changes to capital and competency requirements, as well as changes to business conduct requirements. These included the independent custodisation of customers' monies and assets, and the need for independent fund valuation.
Industry feedback has been positive. Most agreed with MAS' approach of calibrating the level of regulatory and capital requirements for different categories of fund management companies, based on the size and complexity of their businesses, the sophistication of their clientele, and their potential market impact. A paper was issued in September 2010 to respond to industry feedback on the proposed policies. MAS will consult the industry in the second half of 2011 on draft legislative amendments and these are expected to take effect in early 2012.
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