08/08/23

FAMILY OFFICES: MAS consults on proposed framework for single-family offices

As published on: globalcompliancenews.com, Tuesday 8 August, 2023.

On 31 July 2023, the Monetary Authority of Singapore (MAS) published a Consultation Paper setting out a proposed regulatory framework for Single Family Offices (SFOs) in Singapore. The new measures under this proposed framework allows MAS to enhance its surveillance and defence against money laundering risks within the SFO sector.

The proposed SFO framework introduces a harmonised set of qualifying criteria that SFOs must fulfil in order to be exempted from licensing requirements under the Securities and Futures Act 2001 (SFA) to conduct fund management in Singapore. In addition, SFOs will be required to comply with new notification and annual reporting requirements.

Key proposed measures under the framework

We summarise the key measures under the proposed SFO framework in the table below.

Proposed transitional arrangements

MAS proposes a transitional period of six months from the effective date of the proposed SFO framework for all SFOs with existing licensing exemptions to confirm their ability to comply with the new Qualifying Criteria and notify MAS of the same².

The existing licensing exemption that an SFO has been relying on prior to the implementation of the new SFO framework would either be withdrawn upon the SFO’s filing of the requisite notification to MAS, or, at the end of the transitional 6-month period, whichever is earlier. SFOs that have filed the notification with MAS are allowed to continue operating in Singapore without the need to obtain MAS’ acknowledgement. SFOs that are unable to meet the Qualifying Criteria (and are thus unable to file the notification), and continue to carry on business in fund management after the transitional 6-month period will be considered to be in breach of the SFA.

The MAS seeks comments on this consultation paper by 30 September 2023, 11.59 PM.

Tags

Singapore Family Offices