Expanding Your Asset Management Footprint in Singapore

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Fund management sector in the Asia Pacific is set to shine brightly as worldwide investors are optimistic about the investment returns in this region. They are willing to put their money in different types of investment vehicles available in the local financial markets. Within Singapore, relative economic stability and a business-friendly regulatory environment have contributed to an exponential growth of the fund management industry, which eventually contributes to the increase in the establishment of fund management entities here. For instance, one of the leading global asset managers, Barings has recently announced their plan to expand its presence in Singapore with the aim of exploiting new regional investment opportunities.

Based on the latest market news published on Asian Investor, the Monetary Authority of Singapore (MAS) has revealed in their annual report that the assets under management (AUM) in Singapore has experienced spikes of 17% in year 2020 despite the global economic slowdown due to Covid-19 outbreak. At the same time, the number of registered and licensed asset managers is climbing up as well, with 86 new asset managers successfully registered or obtained relevant licences from MAS in the first three quarter of 2020. This signifies a strong market performance and we can expect the figure to keep rising when global asset managers and asset owners have greater confidence in Singapore’s long term prospects. In the foreseeable future, we can expect Singapore’s fund management industry to evolve into a mature industry and be able to make significant contribution to the country’s GDP growth through positive net inflows.

Conclusion

So, what is becoming increasingly clear is that there are plenty of opportunities to start up a fund management company in Singapore. In accordance with Securities and Futures Act (SFA), companies involving in fund management activities have to apply for a capital markets services (CMS) licence to operate as a Licensed Fund Management Company (LFMC) or a Venture Capital Fund Managers (VCFM). Meanwhile, fund management companies operating on a smaller scale can register with MAS as a Registered Fund Management Company (RFMC). Read more on the process of setting up a hedge fund in Singapore.

Is your company considering or in the licence application or registration process? Contact us today to connect with our experts.

How we can help

Alder offers integrated solutions for clients who wish to set up a fund management company in Singapore which include:

• Offer Professional Advice on the Specific Licence Requirements
• Assist with the CMS Licence Application
• Assist with the Registration as an RFMC
• Review the Submission Documents (Form 1A, Form 3A, Form 11, Form 22A whichever applicable)
• Liaise with MAS on Licence Application-related matters
• Provide On-going Compliance Support Post-Licence Approval

Reference Materials

Koh, N. (2021). ‘Assets under management in Singapore rises 17% to $3.5 trillion’, Asian Investor, 30 June. Available at: https://www.asianinvestor.net/article/assets-under-management-in-singapore-rises-17-to-3-5-trillion/470753

Monetary Authority of Singapore (2020). ‘2019 Singapore Asset Management Survey’. Available at: https://www.mas.gov.sg/-/media/MAS/News-and-Publications/Surveys/Asset-Management/Singapore-Asset-Management-Survey-2019.pdf