Types Of Fund Managers

TYPES OF FUND MANAGERS

Do you want to start a fund management company?  If so, it is an RFMC, VCFM, or LFMC? Are you confused by the different acronyms? This article aims to decipher such acronyms to help you better understand the different types of fund management companies in Singapore.

Fund management is one of the regulated activities as set out in the Securities and Futures Act (SFA). 

Fund managers must be registered or regulated to manage third-party investors’ money in collective investment schemes or invest it in securities, including equities, fixed income, and financial derivatives.

There are different types of fund management companies – the category in which they fall would depend on the expected assets under management (AUM) and the type of clients they serve. 

Category 

Registration/Licensing

Target Clientele/ Expected AUM

RFMC

  • Registered Fund Management Company 

Registered Fund Management Company Notification

Restricted to 30 accredited & institutional investors.


Restricted to S$250 million AUM.

 

VCFM

  • Venture Capital Fund Manager 

CMS Licence 

(Venture Capital Fund Manager)

Restricted to only accredited and institutional investors.


Manages venture capital funds only. 

A/I LFMC

  • Accredited/Institutional  Licensed Fund Management Company

CMS Licence 

(Fund Management)

Restricted to only accredited and institutional investors.


No restriction on AUM.

Retail LFMC

  • Retail Licensed Fund Management Company

CMS License 

(Fund Management)

No restriction on type/number of investors.

No restriction on AUM.

The financial and staffing requirements of each category of the fund management company are set out in the table below.

Category 

Financial Requirements

Staffing Requirements

RFMC

  • Registered Fund Management Company 

Base capital of S$250,000

2 full-time Singapore-based employees, each with at least 5 years of relevant experience.

VCFM

  • Venture Capital Fund Manager 

None

2 full-time Singapore-based employees.

Category 

Financial Requirements

Staffing Requirements

A/I LFMC

  • Accredited/Institutional LFMC 

Base capital of S$250,000


Required to maintain financial resources which are more than its total risk requirements

2 full-time Singapore-based employees, each with at least 5 years of relevant experience.


An Independent and dedicated compliance function in Singapore is required if AUM is at least S$1 billion.

Retail LFMC

  • Retail Licensed Fund Management Company

Base capital of S$500,000 or higher


Required to maintain financial resources which are more than its total risk requirements

3 full-time Singapore-based employees, each with at least 5 years of relevant experience.


CEO must have at least 10 years of relevant experience.


An Independent and dedicated compliance function in Singapore is required.

The business model will determine how quickly MAS assesses, processes, and approves applications. It shouldn’t take longer than 4 months in simple circumstances where the applicant satisfies all requirements, and the presented paperwork is in order.

Lawyer Anywhere is the perfect solution for busy entrepreneurs who want to get their business off the ground quickly and easily. With our help, setting up your fund management company will be a breeze. We’ll walk you through the process step by step and answer any questions you have along the way. Contact us today to get started!

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Susan Tan

Senior Legal Executive

Qualifications:

With more than 10 years of experience in the financial industry, Susan Tan, who joined us from one of the leading corporate and investment banks in Singapore, provides invaluable expertise and knowledge in corporate secretarial.

She is conversant and familiar with the local regulations and requirements for business entities in Singapore.

As a member of our team, Susan is responsible for maintaining and updating the Company’s statutory registers and records, filing all necessary documents and forms with the Accounting & Corporate Regulatory Authority (ACRA), Ad-hoc assignments such as allotment and transfer of shares, amendment of Company’s Constitution and submission of Annual Return to ACRA.

Apart from corporate secretarial work, Susan has considerable experience and expertise in compliance advisory matters, making her a valuable member of our firm.