LICENSED FUND MANAGEMENT COMPANIES

fundmanagement

LICENSED FUND MANAGEMENT COMPANIES

To conduct business as a licensed fund management company in Singapore, the company has to apply for a Capital Markets Services licence under Monetary Authority of Singapore (MAS).

MAS is the main regulatory body for companies that are holding the Capital Markets Services license and as Singapore is ranked as one of the major financial hubs in the world under the Global Financial Centres Index, there are additional reporting requirements imposed on licensed fund management companies in Singapore.

Additional Requirements

The additional reporting requirements are regulated under the Securities and Futures Act Chapter 289 (“SFA”) which requires licensed fund management companies to submit 3 additional reporting documents quarterly namely Form 1, Form 2 and Quarterly income and expenditure form.

Every year end, the licensed fund management companies have to submit additional annual forms, Form 1, Form 2, Form 3, Form 4, Form 5 and Form 6.

Form 1 will contain information related to the Assets and Liabilities of the Company while Form 2 includes the computation of Base Capital Funds, the computation of Financial Resources/Total Risk Requirement Ratio and the Adjusted Assets Threshold. Forms 3 and 4 are statements relating to the accounts of a holder of a capital markets services licence while Form 5 and Form 6 are reports from Auditor.

The submissions deadline for the quarterly forms is within 14 days after the quarter end. This is stipulated under the SFA para Para 27 (6): Every statement referred to in paragraph (1) or (5) shall be lodged with the Authority no later than 14 days….

Although the submission of these quarterly forms is only once per quarter, the Act does require the Company to maintain the required Base Capital ratios and the ratio of aggregate indebtedness to aggregate resources at all times, failing which MAS has the authority to require the license holder to report at more frequent intervals or even to suspend its license.

Over at Pikai, we understand the importance of having up to date accounting information for managing the compliance requirements for licensed fund management companies. The current advantages of having live bank feeds in Xero, and our ability to provide timely figures allows the Company to manage their compliance needs. As bookkeepers and accountants to licensed fund management companies, we have the experience to ease your compliance requirements at reasonable rates.

For more information please contact us here.