How do you determine if a fund is a major fund?
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The list of fund management companies are listed in the Financial Institutions Directory. Show
Who needs to apply?If your company wishes to conduct regulated fund management activities under the Securities and Futures Act (SFA) , it must be registered with MAS or hold a capital markets services (CMS) licence to operate either as a:
Individuals performing key functions in a fund management company, such as portfolio construction and allocation, research and advisory, business development and marketing or client servicing are required to be representatives. You can find out more about fund management activity and the various types of fund management authorisation statuses here. MAS also publishes a Licensing and Registration Report for Capital Markets Intermediaries (including fund management companies) here. What are the admission criteria and applicable requirements?When assessing an application to be an RFMC, LFMC or VCFM, MAS takes into account factors such as:
In addition, your company would need to operate from a dedicated and secure office space that is accessible only by your company’s directors and staff. For more information on the admission criteria and applicable requirements, please refer to the Guidelines on Licensing, Registration and Conduct of Business for Fund Management Companies. For more information on the common approvals, notifications and other regulatory submissions relevant to fund management companies, please refer to the Compliance Toolkit for Approvals, Notifications and Other Regulatory Submissions to MAS for Fund Managers. VCFMs are subject to a simplified set of admission criteria – please refer to Appendix 7 of the aforementioned guidelines. What are the applicable financial and staffing requirements?
How do I apply for licensing or registration?
What is the processing time required?Due to the higher volume of applications to MAS presently, we expect to take up to 6 months to review LFMC and RFMC applications, and up to 4 months to review VCFM applications. An in-principle approval is issued to successful applicants at the conclusion of our review process. Applicants have up to 6 months to fulfil requirements set out in the in-principle approval. These requirements typically relate to provision of undertakings, topping up of share capital or formalising the appointments of certain key personnel. The timeline for this phase depends on how speedily the applicant can fulfil the requirements. Applications may experience a longer review period, if the applicant does not fully meet relevant admission criteria, has unique and complex business models, or does not submit all necessary forms, information and documents in the initial application. The applicant should also expect a longer review period if it makes significant changes after making its initial application. MAS may require a fresh submission in such situations. What is the validity of the licence or registration?The licence or registration is valid until:
All entities that are registered or holding a CMS licence to conduct regulated fund management activities are listed on the Financial Institutions Directory. Correspondingly, all fund managers that ceased to be registered or hold a licence will be removed from the Financial Institutions Directory. How do you tell if a fund is a major fund?A major fund is defined as those funds whose revenues, expenditures/expenses, assets or liabilities are at least 10 percent of the total for their fund category (governmental or enterprise) and 5 percent of the aggregate of all governmental and enterprise funds in total.
Which is always a major fund?(The general fund is always considered a major fund, regardless of its individual balances.)
What are the three major categories of funds?CLASSIFYING FUNDS-GAAP BASIS - 7420. The generally accepted accounting principles (GAAP) basis classification divides funds into three broad fund categories: Governmental, Proprietary, and Fiduciary.
What does Major funding mean?MAJOR FUND means a governmental or enterprise fund reported as a separate column in the basic fund financial statements.
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