The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.

The Monetary Authority of Singapore
The Monetary Authority of Singapore last week launched a public consultation on its proposal to streamline the regulatory framework for fund managers. 

The Registered Fund Management Companies (RFMCs) regime will be repealed, and existing RFMCs that are in operation will be approved as Licensed Fund Management Companies (LFMCs) upon application. 

The RFMC regime was introduced in 2012, following the repeal of an earlier regime for Exempt Fund Managers to enable EFMs to transform into a fully regulated regime. EFMs in existence at that time had the option to apply to become either an RFMC or an LFMC. RFMCs are subject to lighter requirements in terms of how frequently they report, and the level of detail they must provide.

MAS said that since 2012, the business models and risk profiles of RFMCs and A/I LFMCs have increasingly converged, making the regulatory distinction between the two less meaningful. 

The regulator said existing RFMCs can continue operating as usual during the transition process; and MAS proposes a simplified process for RFMCs that wish to apply to become A/I LFMCs.

Interested parties can submit comments to the consultation by 31 December 2023.