Why use Outsourced Compliance Services (OCS)?

Outsourced compliance services allow fund managers to access ongoing compliance advisory, monitoring and oversight support without the lead time and cost of recruiting senior in-house compliance staff.

An outsourced compliance service provider can bring deep, strategy-specific expertise to a firm without the lead time and cost of recruiting senior in-house compliance staff. Beyond day-to-day support, firms also benefit from shared expertise and regular industry updates: concise briefings on regulatory developments, enforcement trends and evolving market practice that smaller teams may not have the resources to monitor internally.

A word of caution though, is that outsourcing compliance does not transfer regulatory responsibility away from the fund manager. MAS expects the CEO and directors of Fund Management Companies (FMC) to remain ultimately responsible for their firms’ compliance and regulatory obligations, with outsourced providers supporting management through ongoing advisory, monitoring and oversight.

Fund Managers Have More Options Today

Fund managers today have greater flexibility in how they structure their compliance function. Compliance support no longer needs to rely solely on a fully in-house team or a permanently on-site compliance resource. With clearer governance frameworks, secure digital workflows and more mature outsourcing models, outsourced compliance support is increasingly a practical and credible option for regulated firms.

This gives fund managers access to experienced compliance professionals and broader institutional support without the need for a full-time senior hire. Outsourced compliance arrangements can cover areas such as regulatory advisory, compliance monitoring, policy reviews, MAS filing support, staff training, incident escalation support and ongoing regulatory updates.

That said, firms should ensure any outsourcing arrangement complies with the Monetary Authority of Singapore’s requirements under the Securities and Futures Act and related MAS guidance — particularly the expectation that compliance arrangements remain effective, competent and appropriately overseen. While external providers may support the firm’s compliance framework, the FMC’s CEO and directors remain ultimately accountable for all compliance and regulatory matters. Firms should therefore maintain clear governance structures, documented policies and procedures, and appropriate oversight over outsourced service providers.

For many fund managers, this combination of expertise, scalability and ongoing advisory support makes outsourced compliance services an attractive governance solution.

Read more on: Compliance Requirements for Singapore Fund Managers

Important note: MAS states in Appendix 2 of its Guidelines on Licensing, Registration and Conduct of Business for Fund Management Companies that the CEO and directors of the FMC remain ultimately responsible for all compliance and regulatory matters. This responsibility is non-delegable, regardless of how the firm structures its outsourced compliance arrangement.

The Benefits of Outsourced Compliance Services

For fund managers considering outsourced compliance support, the advantages are practical across a range of operational and regulatory needs:

Specialised expertise:
Outsourced compliance providers bring experienced professionals with strategy-specific knowledge — equipping firms with access to practical guidance, best practice policies and regulatory insight without lengthy recruitment cycles.

Cost efficiency:
Engaging outsourced compliance support can be more economical than maintaining a fully in-house senior compliance function, particularly for emerging or mid-sized FMCs that require flexible rather than permanent resourcing.

Ongoing advisory and oversight:
Established providers support firms through regular monitoring, advisory discussions, compliance reviews and governance processes. This helps management maintain oversight of regulatory obligations while strengthening the firm’s overall compliance framework.

Scalability and flexibility:
Compliance support can be scaled to align with the firm’s regulatory calendar, operational growth and business activities — whether for periodic reviews, MAS submissions, annual compliance programmes or ad-hoc regulatory matters.

Continuity and shared expertise:
A team-based outsourcing model reduces key-person dependency and provides continuity of support. Firms also benefit from broader market exposure and shared expertise through regular updates on regulatory developments, enforcement actions and industry expectations.

How Alder Can Help

Alder provides practical and experienced outsourced compliance support tailored to MAS-regulated fund managers. Our services are designed to support management through ongoing advisory, oversight and operational compliance assistance, while recognising that responsibility for compliance ultimately remains with the FMC’s management and board.

Our support includes:

• Senior compliance professionals with strategy-specific expertise — available for regular discussions, ongoing advisory support and regulatory guidance.
• Compliance monitoring and governance support — including documented policies and procedures, periodic reviews and oversight frameworks.
• Regulatory and operational support — assisting with MAS filings, compliance calendars, internal controls and ongoing compliance obligations.
• Regular industry updates and shared expertise — concise briefings on regulatory developments, enforcement trends and evolving market practice relevant to FMCs.

We design compliance solutions that align with local regulatory expectations while integrating practically into a firm’s existing operations and governance structure.

All services are provided recognising that the regulated firm retains ultimate responsibility for compliance. To discuss a tailored OCS solution and obtain a free consultation and quotation, contact Alder here.