Licensing Types
What does RFMC stand for, and what is its AUM and investor cap?
Registered Fund Management Company; ≤ S$250 million AUM and ≤ 30 qualified investors
Name one fund structure commonly used in Singapore.
VCC, Unit Trust, Limited Partnership, or Company
What type of risk relates to borrower defaults?
Credit risk
What is one periodic report fund managers must submit to MAS?
Quarterly or annual AUM and compliance reports
What is the typical total timeline to set up a fund in Singapore?
6–12 months (including setup, licensing, and launch)
What type of investors can an A/I LFMC serve?
Accredited and Institutional investors only
Which structure offers flexibility and tax benefits under Sections 13O and 13U?
Variable Capital Company (VCC)
Give an example of operational risk from the deck.
IT system failures, human error, fraud, cyberattacks, or regulatory non-compliance
What guideline governs tech risk in fund management operations?
MAS Technology Risk Management (TRM) guidelines
During which phase is the Private Placement Memorandum drafted?
Phase 1: Planning and Structuring
Which fund manager license was introduced in 2017 for VC firms?
Venture Capital Fund Manager (VCFM)
What structure is best suited for a PE fund with a small, qualified investor base?
Limited Partnership under RFMC
What risk is heightened when dealing in sovereign bonds?
Sovereign risk
What are the three elements required under cybersecurity measures?
Vulnerability assessments, data protection protocols, incident response plans
What are some key roles that need to meet MAS’s “fit and proper” criteria?
Directors, portfolio managers, compliance officers
Name two major differences between RFMC and Retail LFMC.
RFMC: Simpler registration, smaller AUM & investor cap. Retail LFMC: Can serve the public, higher capital requirement (S$1M), stricter compliance.
Which structure requires distinct regulatory considerations even before licensing?
Each structure—VCC, LP, Unit Trust—has unique regulatory impacts
How can fund managers mitigate counterparty risk in derivatives trading?
Collateral agreements
What global standards must fund managers now adapt to (name two)?
FATCA, CRS, BEPS
Name two stumbling blocks new fund managers often face.
Underestimating capital needs, navigating MAS regulations, fundraising challenges
What capital requirement is needed for a Retail LFMC license?
S$1,000,000 base capital
What is the main regulatory advantage of using a VCC structure?
Streamlined incorporation, tax exemptions, flexible capital flows
Why is cybersecurity considered a critical operational risk?
Cyberattacks can compromise data, disrupt systems, and damage credibility
Name two ongoing compliance tasks every licensed fund manager must fulfill.
Annual audits, on-site MAS inspections, continuous training, report submissions
List three tasks involved in Phase 1 of setting up a fund.
Define strategy, determine structure, draft offering docs, engage legal/compliance advisors, recruit key team members