The Singapore Capital Markets Services (CMS) Licence in 2021
Since 2003, Healy Consultants Group PLC has been assisting our Clients to register fund management companies across the globe. Singapore is an attractive jurisdiction in which to establish a fund management firm because i) its capital and debt markets have an excellent global reputation and ii) the country has a stable legal framework and infrastructure.
What is a Singapore CMS Licence?
- A Capital Markets Services (CMS) licence is granted by the Monetary Authority of Singapore (MAS);
- Once the licence application is approved, the Singapore entity can legally trade in financial services including i) signing discretionary mandates with customers ii) signing legal contracts and iii) conducting investment activities.
What are the main requirements?
Regulatory requirement Registered Fund Management Company (RFMC) Licenced Fund Management Company (LFMC) LFMC - Retail License Registration License License Who can invest? Qualified investors Qualified investors No restrictions Max assets under Management (AUM) S$250 million No limit No limit Risk-based capital (RBC) requirements None 120% of operation risk requirement 120% of operation risk requirement Minimum base capital S$250,000 S$250,000 S$500,000 or S$1 million Number of directors Minimum 2 Number of other professionals Minimum 2 Minimum 2 Minimum 2 Professional indemnity insurance Not required, but recommended Not required, but recommended Required Representatives Minimum 2 full-time, Singapore residents Minimum 2 full-time, Singapore residents Minimum 2 full-time, Singapore residents Examinations TBD TBD Mandatory Fund administration Mandatory Custody arrangements Mandatory Compliance No specific requirements to fulfil compliance function For AUM of minimum S$1 billion, compliance function to be dedicated and independent from front office Compliance function to be dedicated and independent from front office Audit Internal and external audit mandatory Internal and external audit mandatory Internal and external audit mandatory AML framework Mandatory Risk framework Mandatory Reporting Annual Quarterly and annual Quarterly and annual
Steps for Singapore CMS licence application
- Healy Consultants Group PLC assists our Client to register a Singapore private limited liability company and open a Singapore multicurrency corporate bank account by following these steps;
- Healy Consultants Group PLC cannot supply our Client with a nominee qualified Singapore resident director, as MAS prohibits nominee appointments for fund management companies. We will, however, assist our Client to i) source a physical office in the city and ii) draft a lease agreement;
- We assist our Client to prepare i) employment contracts of all directors, with a description of their obligations and functions ii) a business model and strategic plan for the business and iii) an organisation chart;
- Before we submit the licensing application to the MAS, your firm will be required to inject a paid-up capital of at least S$250,000 to your Singapore corporate bank account;
- All going well, Healy Consultants Group PLC prepares and submits the licence application to MAS.
Our service packages
Healy Consultants Group PLC will project manage your fund management business set up from start to finish. Our standard service package includes i) company registration ii) company secretary and registered address services iii) opening Singapore corporate bank account iv) sourcing physical office space v) preparation of AML/CFT programmes and other required documents vi) securing a CMS license from the MAS;
Additionally, our Firm offers support services including i) accounting and book keeping ii) drafting of prospectus if your firm plans to issue structured products and iii) assistance to recruit employees.