Key Details on the RFMC Regulation Changes
The Monetary Authority of Singapore (MAS) has released important responses regarding the repeal of the Registered Fund Management Companies (RFMC) regulatory framework.
For detailed information on MAS’s responses, please access the full document here.
Transition Timeline and What You Need to Know
- Repeal and Transition: MAS is targeting to repeal the RFMC framework on 1 August 2024. FMCs currently operating under this regime must apply to become A/I LFMCs to continue their regulated activities beyond this date.
- Application Window: The window for submitting Form 1AR, required for the transition to A/I LFMC status, is from 1 April 2024 to 30 June 2024.
Maintaining Smooth Operations and Meeting Compliance
- Ongoing Operations: During the Form 1AR application process, RFMCs should expect to continue to operate without disruptions. It is vital for RFMCs to start familiarizing with the A/I LFMC regulations early, as the additional regulatory requirements will apply immediately post-transition.
- Addressing Current Compliance Matters: Firms with unresolved regulatory issues can still apply for the A/I LFMC license, but must resolve these issues post-transition.
Highlight on the UAE’s Compliance Progress
The UAE’s recent exit from the FATF Grey List on 23 February 2024 marks a significant milestone for the country. Having been under increased monitoring since 4 March 2022, the UAE’s journey reflects a steadfast commitment to enhancing its AML/CTF frameworks.
AUM Cap Considerations and Adjustments
- AUM Cap Continuation: The S$250 million assets under management (AUM) cap for RFMCs will remain in effect post-transition to A/I LFMC status. Requests to review this cap can be made in the future, subject to MAS’s evaluation of the firm’s capability to manage a larger asset pool.
Guidance on Transitioning from RFMC to A/I LFMC
As the regulatory framework for fund management evolves in Singapore, The Ascent Group is ready to assist you through this transition. Leveraging our deep regulatory knowledge and strategic insights, we can help to make your shift from RFMC to A/I LFMC not just compliant, but beneficial for your growth strategy.
For a smooth transition or any inquiries, our experts are just a call away. Let’s ensure your fund management practices are future-proofed and aligned with Singapore’s regulatory advancements.
For more information on how these updates may impact your business or to explore personalized compliance solutions, contact our support team. We’re here to turn compliance challenges into opportunities for your growth.
