Types of Licences for Fund Managers in Singapore
The licensing for fund managers in Singapore is governed under the Securities and Futures Act (SFA). To conduct regulated Fund Management Activities in Singapore, it is compulsory for the company to be registered to operate as one of three types:
- Registered Fund Management Company (RFMC)
- Licenced Fund Management Company (LFMC)
- Venture Capital Fund Manager (VCFM)
1. Registered Fund Management Company (RFMC)
An RFMC is allowed to have:
- Up to 30 accredited and institutional investors,
- Up to S$250 million worth of Assets Under Management (AUM)
2. Licensed Fund Management Company (LFMC)
The 2 main types of LFMC’s are:
i. Retail LFMC: Allows fund management activities to include all types of investors, including retail investors
ii. Accredited / Institutional (A/I LFMC): Limited to only accredited and institutional investors
3. Venture Capital Fund Manager (VCFM)
VCFM’s manage venture capital funds that meet certain restrictions and criteria on the investment of the funds. The VCFM, similar to the A/I LFMC is limited only to accredited and institutional investors.
Some of the Required Criteria Include:
- Minimum Base Capital of S$250,000 for RFMC and LFMC
- Minimum of 2 full-time Singapore-based employees (Minimum 3 for Retail LFMC)
- Corporate representatives with minimum years of experience
- Annual corporate fee payable to MAS (S$4,000 for LFMC & RFMC, S$1,000 for VCFM)
Application Timeline
Usually 4 months.
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