The Singapore Capital Markets Services (CMS) Licence
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. Once the licence application is approved, the Singapore entity will legally be able to start trading 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 to take for Singapore CMS licence applicationHealy Consultants Group PLC will assist our Client to register a Singapore Private Limited Liability Company and open a Singapore multicurrency corporate bank account. Kindly see this webpage for the steps required. Once these steps are complete, your Firm will be able to begin the CMS licence application.
- Securing physical office space: Healy Consultants Group PLC cannot supply our Clients 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;
- Preparation of documents: Healy Consultants Group PLC will 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;
- Capital injection: Before Healy Consultants Group PLC can 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;
- Submission of licence application: All going well, Healy Consultants Group PLC will prepare and submit the licence application to MAS.
Our service packagesHealy 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 with MAS;
Additionally, our Firm can also offer multiple additional support services, including i) accounting and book keeping ii) drafting of prospectus if your Firm is planning to issue structured products and iii) assistance to recruit employees.