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Simplified Regime for VC Fund Managers

February 21, 2017 - Regulatory Updates

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The Monetary Authority of Singapore (“MAS”) published a consultation paper proposing a simplified regulatory framework for venture capital (“VC”) fund managers. This is part of MAS’ broader strategy to promote financing for start-ups in Singapore.

The MAS has emphasises that it will retain its regulatory powers under the simplified framework. This means that VC managers will still be required to implement ongoing compliance policies such as conflicts of interest policies, adequate disclosure to investors, AML/CFT requirements as well as others. VC firms will also still have to implement adequate compliance monitoring procedures, and it is likely that MAS will apply more scrutiny to those ongoing procedures since VC firms will be under a simplified approval framework.

Key changes for VC managers announced by MAS:

  1. Removal of the 5 year relevant fund management experience requirement for VC managers’ to directors and representatives;
  2. Generally, shortened application process;
  3. Removal of the base capital and risk-based capital requirements; and
  4. Removal of the requirement for independent valuation, internal audits and submission to MAS of audited financial statements.

The removal of the aforementioned business conduct requirements are based on the notion that VC funds should generally pose lower risks to financial markets and investors because they are typically only offered to accredited and institutional investors.

If you would like to discuss any of these topics in more detail, please contact Aaron Weiss at Lawson Conner (Singapore) Pte Ltd via aweiss@lawsonconner.com / +65 3163 6196. www.lawsonconner.com/asia.

Lawson Conner assists financial institutions with implementation of MAS Regulations via practical compliance solutions for regulated businesses. Should you have any questions about these MAS guidelines and the potential implications for your business.

For more information, please contact Aaron Weiss
Email: aweiss@lawsonconner.com 
Tel: +65 3163 6196



Andrew Frost
Director, Investment Management Services

E: afrost@lawsonconner.com


Joe Woodbury
Director, Investment Management Services

E: jwoodbury@lawsonconner.com