Singapore's government has been actively involved in making the country a vital fund management center of Asia. The flexible business regulations, excellent infrastructure, and support from the government for wealth management have made Singapore a lucrative destination for fund managers to choose company registration in Singapore.
Fund managers usually offer advice and make decisions for a limited partnership for which they typically form a fund management company (FMC). In Singapore, fund managers can take up fund management in four ways as per the guidelines set by the Securities and Futures Act (SFA):
An institutional fund management company is also called a licensed, accredited fund management company. Such a fund management company works with institutional investors and accredited investors known as qualified investors. Institutional fund management service needs the 'capital markets services license issued by the Monetary Authority of Singapore (MAS).
A licensed retail fund management company deals with retails investors, who are nonprofessional, individual investors. Retail investors usually make small investments as compared with institutional investors. Such a fund management option needs the 'capital markets services license issued by the Monetary Authority of Singapore (MAS).
A registered fund management company is only registered with the MAS and is exempted from licensing conditions related to the other fund management choices. In addition, it does not need to have any risk-based capital needs.
In Singapore, the VC fund management comes under a relaxed regulatory regime of MAS. A few of the relaxations for VC fund managers are that they can serve multiple investors, have no minimum base capital need, have no minimum risk-based capital need, and more. Consequently, this allows VC funds to speed up their registration process, expedite fund management, and lessen barriers to market entry.
To make Singapore a hub for wealth management, the government has laid down flexible regulations and offers various fund management licenses. Thus, offshore fund managers can choose from institutional fund management, licensed retail fund management, registered fund management, or VC fund management as per their needs.