Key changes to MAS regulatory capital requirements for Singapore fund managers

On April 3, 2013, the Monetary Authority of Singapore (“MAS”) strengthened the risk-based capital (“RBC”) framework for licensed fund management companies (“FMCs”), as well as for other capital markets services (“CMS”) licensees. These changes were intended to more accurately reflect the risks undertaken by FMCs, to enhance the RBC framework and to strengthen the quality of capital required.

The MAS provided transitional periods for certain FMCs to allow them sufficient time to implement systems in compliance with the revised RBC framework, these categories include:

1. a FMC that was an exempt fund manager prior to August 7, 2012 and had applied for a CMS licence for fund management (“Fund Management Licence”) prior to February 7, 2013, and such application is granted by April 3, 2015 (“Existing EFM”);
2. a FMC that is a holder of a Fund Management Licence granted prior to 3 April 2013 (“Existing Licensed FMC”);
3. a FMC that is a registered FMC prior to April 3, 2013 and has applied for a Fund Management Licence which is granted by April 3, 2015 (“Existing Registered FMC”); and
4. a FMC (other than an Existing EFM or Existing Registered FMC) that had applied for a Fund Management Licence prior to April 3, 2013, and such application is granted by April 3, 2015 (“Newly Licensed FMC”).

1. the FMCs do not carry on any regulated activities other than fund management; and
2. the FMCs are incorporated and conducting business in Singapore.