Fund licensing is meant to assist business employers within the brand licensing sector that are struggling during the pandemic.
Fund licensing management activities in Singapore are regulated by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (Cap. 289) (SFA).
In order to manage an investment, a fund manager license is required in Singapore. The fund managers planning to market a fund will need to obtain a Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (Chapter 289) (SFA). A minimum capital requirement must be met to qualify for the CMS License.
Those who want to open a corporation in Singapore and apply for a fund manager license must also register with the Monetary Authority within the city-state (MAS) and must comply with a few requirements.
In order to apply for the fund manager license in case of a fund management company in Singapore, a local or a foreign investor must register a company with ACRA under the following conditions:
- The company must have a minimum of 2 directors with at least 5 years of experience in the financial industry;
- At least one of the directors must be a Singapore citizen or resident and must be appointed as an executive director;
- The minimum share capital for obtaining the fund manager license is 250,000 SGD;
- The documents required for registration are the same as for any other type of company in Singapore;
- The fund management company must have a permanent head office in Singapore;
- Different criteria can apply, based on the number of investors the Singapore company will service
The requirements mentioned above apply to fund management companies servicing a maximum number of 30 investors and managing assets with a worth of maximum 250 million SGD.
Special requirements apply when seeking to get a fund manager license with the aim of administering assets with a value of more than 250 million SGD. The Singapore company formation requirements in this case are a minimum of 3 directors, out of which 2 must reside or relocate to Singapore, and a share capital which can go up to 1 million SGD.
How Bluebox can Help?
If you want assistance in fund licensing with the purpose of setting up a fund management company ,our dedicated advisers are here to help you identify your goals, and explain the process to achieve it with a simple and comprehensible approach. With our dedicated advisers guiding you every step of the way and ensure proper solutions with detailed guidance.
To grow beyond their home markets, companies need to manage regulatory risks, overcome cultural differences and provide competitive advantages.
With more rigorous regulations and local enforcement, Bluebox Global can help clients manage increasingly rigorous regulations with a practical focus. We have a multidisciplinary approach to our legal work, with colleagues in tax, consulting, finance, and risk management, as well as professionals focused on certain sectors and industries. Bluebox Global works cross-functionally to provide its clients with a holistic perspective.
In addition, we understand the resource constraints placed on your business by commercial litigation, when it is unavoidable. So, when planning your legal strategy with us, we focus on the business case: the financial consequences of litigation in the context of your commercial objectives; and, where appropriate, we stress the efficiency of alternative dispute resolution, such as arbitration or mediation.
We provide support to clients in the following areas:
- Commercial Advisory
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- Full-Scale Pre-Insolvency Solutions
- Agency disputes & Partnership disputes
- Transfer Pricing Documentation, Intra-Group Contracting
How Bluebox can Help?
The legal services that we offer are for the application of rules, laws, and regulations in Singapore and global markets.
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The Variable Capital Company (VCC) is a new corporate form for investment funds established by the Variable Capital Companies Act, which went into force on January 14, 2020. The VCC will be a great addition to Singapore’s existing investment fund arrangements.
With the Variable Capital Company (VCC), several collective investment schemes (whether open-end or closed-end) can be collected under a single corporate entity while being ring-fenced from one another. Unit trusts, limited partnerships, limited liability partnerships, and corporations are all alternatives to the new corporate entity form. The VCC’s umbrella structure allows sub-funds to share a board of directors and customary service providers, like the same fund manager, custodian, auditor, and administrative agent.
Certain administrative responsibilities, such as general meeting holding and prospectus preparation, can also be merged. Members may hold shares that are referred to a specific sub-fund held by the VCC if the VCC is set up as an umbrella fund with numerous sub-funds.
Advantages of a Variable Capital Company
- A VCC has a variable capital structure that allows for the issuing and redemption of its shares to be done in a variety of ways. Fund managers have more freedom to satisfy dividend payment requirements because it’s possible to pay dividends out of capital as well.
- A VCC is set either as one independent fund or as an umbrella fund with two or more sub-funds, each having its own portfolio of segregated assets and liabilities. There may be cost savings for fund managers that organise their funds as umbrella VCCs by employing common service providers across the umbrella and its sub-funds.
- Both open-ended and closed-end fund strategies can benefit from a VCC.
- By moving their registration to Singapore as VCCs, fund managers can create new VCCs or re-domicile their existing foreign investment funds with similar structures.
- VCCs are required to keep a shareholder registry, which does not have to be made public. This record, however, must be made available to public authorities upon request for regulatory, supervisory, and law enforcement reasons.
The purpose of VCC
- For both standard and non-traditional fund strategies (both open-ended and close-ended)
- To list funds for the purpose of information listing and trading
- As a mechanism for pooling and investing, it eliminates the need for multi-tiered fund structures.
Our Services
- Help incorporate you VCC
- Putting together your legal paperwork
- Assist with compliance from the start.
- Assist as the Secretary of the Company
- Assist you as a Registered Filing Agent.
- Become your registered office.