In Singapore, the field of fund management is a highly regarded financial business. Fund management companies (FMCs) play an important role in providing asset management services to investors and driving the development of the financial market. There are two types of fund management companies: Registered Fund Management Companies (RFMCs) and Licensed Fund Management Companies (LFMCs).
RFMC (Registered Fund Management Company) is a type of fund management company in Singapore that specializes in fund management activities. The following is information about RFMC, including its definition, advantages, and registration process:
What is RFMC? RFMC is a fund management company registered with the Monetary Authority of Singapore (MAS) that primarily engages in fund management activities, including managing investment portfolios and funds. RFMC does not require a Capital Markets Services (CMS) fund management license, and companies previously known as Exempt Fund Managers (EFMs) are now referred to as RFMCs. However, RFMCs are subject to fewer compliance requirements and supervision.
Advantages of RFMC:
Flexibility: Compared to companies holding CMS licenses, RFMCs have fewer compliance requirements, giving them greater flexibility in certain aspects.
Low threshold: The capital requirements for registering as an RFMC are lower, and the requirements for directors and representatives are relatively simplified, which helps lower the entry barrier.
Scope of application: RFMCs can provide fund management services to no more than 30 qualified investors, including limited partners, and the total assets under management must not exceed SGD 250 million.
How to register as an RFMC: The following is a general process for registering as an RFMC, but please note that this process is based on previous circumstances and may be subject to changes based on the information you provide. It is recommended to consult the latest relevant information before registering to ensure compliance with the latest regulations.
Company registration: Determine the company name (in English only), provide the passports and identification cards of two directors after name approval, and proceed with company registration.
Office address: Find an independent office address, which can be done independently or through an agent.
Bank account opening: Open a company bank account and deposit funds.
Contact MAS: Contact the Monetary Authority of Singapore (MAS) to register as an RFMC. Submit the required documents, including company registration documents, business plans, equity structure diagrams, organizational structure diagrams, etc. Specific document requirements may vary.
Waiting for approval: The entire registration process generally takes about 3 months and may be extended due to review and other reasons.
Official operation: Once authorized by MAS and the company name is included in the online directory on the MAS website, the RFMC can officially commence fund management operations.
Fund management is one of the key businesses in the financial sector, and in Singapore, Registered Fund Management Companies (RFMCs) play an important role. Although RFMCs are subject to relatively less compliance regulation, their flexibility and scope of application make them a choice for some companies entering the fund management field. Registering as an RFMC requires meeting a series of conditions, including capital requirements, qualifications of directors and representatives, risk management framework, etc. However, this also provides companies with greater autonomy and development opportunities.