The Monetary Authority of Singapore has issued a consultation paper seeking comments on draft legislation to implement a revised regulatory regime for fund management companies to enhance business conduct.

Date: Oct 7, 2011

Tags: Singapore, Regulation, Fund management

The Monetary Authority of Singapore (MAS) has issued a consultation paper seeking comments on draft legislation to implement a revised regulatory regime for fund management companies (FMCs) to enhance business conduct.

The regulator is proposing that FMCs put in place a risk management framework over their fund management operations to identify, address and monitor the risks associated with the assets they manage.

The MAS is also proposing that FMCs which operate under the notification regime undergo independent annual audits.

In addition, the regulator intends to apply a new Capital Markets and Financial Advisory Services examination for representatives of licensed retail FMCs which manage or offer specified investment products to persons who are not accredited or institutional investors.

MAS wants to receive comments on the draft legislative amendments and proposals in the consultation paper by 26th October 2011.

The revised regime is expected to take effect in early 2012.