Singapore’s fund management industry continues to be the most appealing and attractive choice for fund managers across the world. Positioned as Asia’s leading asset management centre, Singapore is currently well-equipped with approximately $3.4 trillion worth of assets under management (AUM) and 900 registered and licensed fund managers.

To perform regulated activities in Singapore under the Securities and Futures Act (SFA), such as engaging in a fund management business, the company must be registered with MAS or hold a Capital Markets Services Licence to operate as a:

• Registered Fund Management Company (RFMC)
• Licensed Fund Management Company (LFMC)
• Venture Capital Fund Manager (VCFM)

Key Licence Requirements

Fund Management Company – Types of Licences

Requirements	Venture Capital Fund Management (VCFM)	Registered Fund Management Company (RFMC)	Capital Markets Services Licence (CMS) / Licenced Fund Management Company
Amount of Assets under Management	Any amount.	Maximum of S$250 million.	Any Amount.
The number of Directors & Experience	Minimum of 2 directors. At least 1 of whom should be full-time and resident in Singapore. Minimum of 2 relevant professionals with at least 5 years experience and must be full-time residents of Singapore.	Minimum of 2 Directors with >5 years relevant industry experience. At least 1 must be an Executive and must be a full-time resident of Singapore. Minimum of 2 relevant professionals with at least 5 years experience and must be full-time residents of Singapore.	If investors are open to Retail: Minimum of 2 Directors with >5 years relevant industry experience. At least 1 must have >10 years of relevant experience, be an Executive Director and Singapore-resident. If investors are only Accredited Investors (A/I): Minimum of 2 Directors with >5 years relevant industry experience. At least 1 must be an Executive and must be a full-time resident of Singapore. For CMS / LFMC licence holders: Minimum of 3 relevant professionals with at least 5 years experience and must be full-time residents of Singapore.
Minimum Base Capital Requirements	No specific requirements.	S$250,000	At least S$500,000 (non- CIS) and at least S$1,000,000 (CIS).
Investor Type	Accredited and Institutional only (no Retail).	Limited to Qualified Investors.	LFMC A/I – only Accredited Investors LFMC Retail – no restrictions.
Type of Investment	Only in Venture Capital i.e., 80% of the fund’s portfolio should be in companies less than 10 years old.	No specific restriction.	No specific restriction.
Number of Investors	No Limits- Accredited Investors or Qualified Investors.	Maximum of 30 investors (which may include up to 15 funds).	No restrictions.
Compliance Arrangements	This function can be outsourced if the AUM is <S$1bn.	Can be outsourced as per the complexity and scale of business.	For AUM >S$1bn, to be in-house or can be outsourced. For LFMC Retail, to be in-house.
Professional Indemnity Insurance	None stipulated so far, but this should be commensurate to the scale, nature, and complexity of the specific setup.	Encouraged to be maintained.	Mandatory for LFMC Retail.
Reporting requirements	Annual.	Annual.	Annual / Quarterly.
Risk-Based Capital Requirements	At least 120% of operational risk requirements.	None.	At least 120% of operational risk requirements.

Criteria to Apply for a Fund Management Licence:

When reviewing an application, MAS considers factors such as:

• Fitness and propriety of the applicant, its shareholders, and directors.
• Track record and management expertise of the applicant and its parent company or major shareholders.
• Ability to meet the minimum financial requirements prescribed under the SFA.
• Strength of internal risk management and compliance systems.
• Business model/ plans and projections and the associated risks.

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How can Rikvin help? 

The fund management licence application timeline can take about 4 months. We will take care of the entire company setup process, assist you in securing a fund management licence smoothly and ensure that all the regulatory and compliance needs are met in Singapore.