Alder supports fund managers, venture capital firms, and investment businesses applying for a CMS license in Singapore.
From eligibility review, licence strategy to document preparation and MAS submission support, we help clients navigate the licensing process with confidence.
What Is a CMS License in Singapore?
It is a licence issued by MAS (Singapore’s central bank & financial regulatory authority) for businesses carrying on regulated capital markets activities under the Securities and Futures Act. Depending on the business model, this may include:
- Dealing in Capital Markets Products (e.g.: securities, CIS, OTC derivatives)
- Advising on Corporate Finance
- Fund Management
- REIT Management
- Provision of Credit Rating Services
- Provision of Custodial Services
- Providing Financing
Whether a CMS license is required should be assessed early when planning to set up a fund, as the proposed investor base, fund strategy, operating model, and internal governance arrangements can all affect the licensing pathway. In particular, businesses will often need to consider whether an Licensed Fund Management Company (LFMC) or Venture Capital Fund Management (VCFM) framework is more suitable.
Who Our CMS License Support Is For
Fund Management Licences We Support
A/I LFMC
For fund managers serving accredited and institutional investors in Singapore. This pathway is commonly used by firms managing private capital under a Capital Markets Services licence with a more limited investor scope than retail fund managers.
Retail LFMC
For fund managers targetting retail investors under a broader regulatory regime. This licence carries higher regulatory expectations and is generally suited for businesses offering investment products to the wider public.
VCFM
For managing qualifying venture capital funds in Singapore. Designed for managers focused on private investments in start-ups and growth-stage businesses, with a streamlined regulatory framework compared to other fund management licence types.
VCC Setup
For businesses planning to establish a fund in Singapore and structure it appropriately from the outset. This includes guidance on fund vehicle selection, VCC structuring, investor model, and aligning the proposed setup with the relevant licensing pathway.
Flip me
Beyond licensing support, we can also assist with the incorporation and establishment of the relevant entities, making us a practical one-stop shop for businesses looking to launch their fund on the right footing.
LFMC vs VCFM: Which Route Fits Your Business?
| LFMC | VCFM | |
|---|---|---|
| Core purpose | For broader fund management activity in Singapore. | For fund management only in respect of venture capital funds. |
| Investor base | A/I LFMC serves qualified investors only. Retail LFMC can serve all types of investors. | Serves qualified investors only. |
| Strategy scope | More suitable for firms managing a wider range of fund strategies or mandates. | Narrower regime focused on qualifying VC funds. |
| Flexibility | Generally more flexible if the business may expand beyond venture capital. | Best suited where the business is intended to remain VC-focused. |
| Best fit for | Private fund managers, multi-strategy managers, or firms planning broader fund activities. | Venture capital managers investing in start-ups and growth-stage businesses. |
Our CMS License Application Process
1.
Initial Consultation with Alder for Eligibility & license pathway assessment
2.
Prepare Supporting Documents & MAS License Application Forms for Submission
3.
Liaison with MAS on your behalf & Interview Prep to Obtain In-Principal Approval
4.
Post-Approval Compliance Setup & Ongoing Advisory
