August 2012 - Enhanced Regulatory Regime for Fund Management Companiese
The Monetary Authority of Singapore (“MAS”) has issued the much anticipated enhanced regulatory regime for fund management companies (“FMCs”). These took effect from 7 August 2012, with certain transition provisions.
Overall, it is a progressive regulation. It reinforces the professional duty of care that fund managers have to their investors and the important role that they must play in ensuring the sustainability of Singapore’s fund management industry, which is in turn critical to ensuring the long term success or otherwise of their own businesses.
The enhanced regime codifies certain base-line safeguards for investors. Investors must continue to have confidence in entrusting assets to be placed and managed in Singapore. It levels the playing field in favour of serious players and will pose potentially difficult questions for those players who are not able to or not prepared to meet the minimum entry requirements to operate in Singapore. In the longer run, this enhanced regime will help further promote and strengthen global recognition of Singapore’s quality and trusted fund management industry and Singapore’s position as a leading asset management centre in Asia. This can only be in the longer term, in the interest of industry players too as their sustainability and growth ambitions in part relies on the continued support and growth from foreign investor assets.