RFMC – Registered fund management company
What is RFMC (Registered fund management company)?
- Must be registered with MAS to conduct regulated fund management activities under the Securities and Futures Act (SFA)
- To be eligible as an RMFC the assets under management (AUM) of the RMC should not be more than $250 million and it should not cater to more than 30 qualified investors.
- Of the 30 qualified investor, more than 15 funds with accredited investors as underlying investors should not be present.
- Individuals performing key functions in a fund management company such as portfolio construction and allocation, research and advisory, business development and marketing or client servicing are required to be representatives
The FMC can starts its business operations once the MAS authorizes its notification and includes the name of the RFMC in its online directory on the website of MAS.
RFMC (Registered fund management company) Requirements
- Can have a maximum of 30 accredited institutional investors (Out if which a maximum of 15 can be a fund or limites funds).
- To have a minimum base capital of 250,000 SGD
- Directors requirements:
- Minimum 2 numbers of Directors
- Minimum 5 years of relevant experience for Directors
- Executive Director: At least 1 out of 2 Directors minimum 2 of relevant professionals residing in Singapore: Relevant professionals residing in Singapore: Relevant professionals are employed full-time in the day-to-day operations of the company. They may include the executive directors, CEO, and representatives of the FMC.
- Min 2 (5 years of relevant experience is requires) of representatives residing in Singapore:
4. Risk Based Capital
RFMC are not subject to risk based capital, so there is no need to maintain an additional buffer. The requirement of risk-based capital applies on to the LMFCs.
5. Compliance Function
RFMCs are not mandated to have their own independent compliance department. An RFMC should ensure that it has adequate compliance arrangements commensurate with the scale, nature and complexity of its operations. This may take the form of an independent compliance function, compliance support from overseas affiliates and/or use of external service provides that meet the requirements set out previously.
6. Audit and Internal Audit
RFMC is subject to annual MAS audits and also internal audits