Singapore Amends Hedge Fund Regulations To Require Registration

Aug 9 2012 | 1:40pm ET

Asia’s second-largest hedge fund center has completed a two-year process to update its alternative investment regulations.

The city-state’s amended rules went into effect this week. The most notable change is the elimination of the exempt fund manager status in favor of a new category, registered fund management company. While current EFMs will have to now register with the Monetary Authority of Singapore, they will not require a license.

Registered managers are also limited to 30 qualified investors and S$250 million in assets. Those with more investors or more assets will need to obtain a license.

EFMs have six months to register or acquire a license.

The new rules also impose stricter business conduct and capital requirements. Licensed fund management companies will have to undergo annual independent audits and employ independent custody and valuation services.

While the impact on licensed managers is seen as small, smaller currently exempt managers may feel the new rules more. All fund managers, registered or licensed, must have two “relevant professionals” resident in Singapore, and a firm’s board of directors must have at least two members with at least five years’ experience. A firm’s CEO is also required to have five years’ experience.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of