MAS Regulations and Licences

On 25 September 2025, the Monetary Authority of Singapore (MAS) issued the Guidelines on Standards of Conduct for Digital Advertising Activities. These new rules, effective 25 March 2026, apply to all financial institutions (FIs) and their appointed digital marketers — including agencies, affiliates, and influencers (“finfluencers”).

As the economy of Singapore grows dynamically, investors are attracted to explore the opportunities and invest their money here. As a result, we can expect the hedge fund industry to perform well in the country. Singapore is competing alongside with Hong Kong, to become the top location that connects fund managers with asset owners who are looking for companies to assist with portfolio management.

In accordance with the Securities and Futures Act (SFA), fund management companies in Singapore need to register themselves with MAS. Otherwise, the company should at least hold a Capital Markets Service Licence to continue operations.

Collective Investment Schemes (CIS) allow investors to pool funds into a managed portfolio of assets such as equities, bonds, or cash. Administered under the Monetary Authority of Singapore (MAS), all CIS offers must comply with the Securities and Futures Act (SFA) and the Code on Collective Investment Schemes.

Global capital markets participants are broadly classified into three groups — buy-side, sell-side, and financial intermediaries. While sell-side firms focus on issuing and selling securities, buy-side firms invest in them for fund management purposes. This article explores the buy-side segment, including hedge funds, private equity, and venture capital.

Singapore’s strong trade network and the signing of RCEP have deepened regional integration and boosted investor confidence. The hedge fund industry benefits from these developments, attracting significant inflows from global investors. Fund managers operating in Singapore are required to hold a Capital Markets Services (CMS) licence under MAS regulations.

The Monetary Authority of Singapore (MAS) regulates all payment service providers under the Payment Services Act (PSA). This unified licensing framework covers key activities such as e-money issuance, money transfer, and digital payment token services, ensuring safe and compliant operations within Singapore’s growing FinTech ecosystem.

The RFMC regime has been officially repealed by MAS, with all fund managers now transitioning to the A/I LFMC framework. The change streamlines regulatory oversight and supports Singapore’s growth as a trusted global fund management centre.

Singapore’s well-developed infrastructure, political stability and sustainable economic growth are factors attracting inflows of foreign direct investment. This eventually results in a higher demand for capital market services (CMS). Singapore’s financial institutions (FIs) need to hold a CMS licence to conduct regulated business activities under the Securities and Futures Act (SFA).

The Monetary Authority of Singapore (MAS), as Singapore’s central bank and financial regulator, oversees the licensing and supervision of financial institutions (FIs) under five main sectors — Banking, Capital Markets, Financial Advisory, Insurance, and Payments.