Deputy Prime Minister and Monetary Authority of Singapore (MAS) Chairman Tharman Shanmugaratnam announces review of the regulatory regime for venture capital managers.
Speaking at the launch of LATTICE80, the first innovation space and not-for-profit private sector initiative in Singapore dedicated to and designed for the support of financial technology (FinTech), Mr. Shanmugaratnam said that a forthcoming review of the regulatory regime for venture capital (VC) managers would seek to simplify the licensing process and explore the possibility of exempting VC managers from certain business conduct requirements currently applied to all asset managers. It was also revealed that MAS is looking at how existing incentives (including tax incentives) can be further enhanced to encourage VC managers and their funds to set up operations in Singapore.
Singapore has seen a flurry of fund managers launching operations in the city-state due to its status as a financial hub, available tax incentives, strategic position in Asia, and easy access to financing and support infrastructures. Already housing more than 300 FinTech startups and more than 20 global banks and insurance companies that have established innovation labs and research centres, this further enhancing of the regulatory regime with a view to VC customisation is welcome, and will undoubtedly help develop the FinTech eco-system in Singapore.
A six-month public consultation on the MAS proposals is expected to be launched in January 2017 with the aim of introducing accepted proposals by July 2017.