Application for Venture Capital Fund Manager (VCFM) Licence
Updated: Jul 19, 2020
A VCFM may only manage funds that meet the following criteria:
(i) invest at least 80% of committed capital in securities that are directly issued by an unlisted business venture that has been incorporated for no more than ten years at the time of initial investment;
(ii) invest up to 20% of committed capital in other unlisted business ventures that do not meet sub-criterion (i), i.e. they have been incorporated for more than ten years at the time of the initial investment, and/or the investment is made through acquisitions from other investors in the secondary market;
(iii) must not be continuously available for subscription, and must not be redeemable at the discretion of the investor; and
(iv) are offered only to accredited and/or institutional investors.
Who needs apply
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.
When assessing an application to be a VCFM, MAS takes into account factors such as:
- Fitness and propriety of the applicant, its shareholders and directors.
- Track record and fund management expertise of the applicant and its parent company or major shareholders.
- Ability to meet the minimum financial requirements prescribed under the SFA.
- Strength of internal risk management and compliance systems.
- Business model/ plans and projections and the associated risks.
In addition, your company would need to operate from a dedicated and secure office space that is accessible only by your company’s directors and staff.
Financial and staffing requirements
There is no minimum base capital and other financial resource requirement.
Minimum of 2 full-time Singapore-based employees
If you hire or appoint individuals to conduct a regulated activity under your licence, you have to appoint and identify these individuals as your representatives for that regulated activity.
Applying for licensing or registration
SECTION 1: INFORMATION ON THE COMPANY AND ITS SHAREHOLDERS
Provide business profile for the incorporation of the Company as filed with the Accounting and Corporate Regulatory Authority (“ACRA”) of Singapore.
Provide organisational chart of the Company.
Provide the shareholding chart that shows how the Company is related to each of its shareholder (including natural persons), and to its related entity(s), subsidiary(s) and branch(s) (where applicable). Information on other forms of controlling interests should also be included in the chart. The chart should indicate the percentage of shareholdings or controlling interests held by each person, the date of incorporation and the place of incorporation of each entity.
SECTION 2: INFORMATION ON THE COMPANY'S PROPOSED BUSINESS PLAN
Provide business plan of the Company (i.e. brief description of proposed business model and outline of the activities, and the profile of key principals including major shareholders).
Provide details of fund(s) to be managed or advised: Name of fund, Place of incorporation/domicile, Appointed fund manager, Role of the Company, if not manager to the fund, Investment by sector, Geographical focus, Latest/Targeted AUM (S$)
Set out details of any shareholdings where the individual owns 5% or more of the total number of voting shares in the business or corporation in Singapore or elsewhere: Name of entity, Place of incorporation/establishment, Nature of business, Related entity (Yes/No), Date of acquisition (DD/MM/YYYY), % shareholding in corporation
There is a non-refundable application fee of S$1,000 upon submission of the application.
There will be annual corporate fee of S$4,000 for the licence or registration status.
MAS expects to take not more than 4 months to review and process an application if the business model is straightforward, the applicant meets the relevant admission criteria fully, and the application is complete and clear. For more complex cases, or cases where information is assessed to be incomplete or inaccurate, MAS will need a longer time to review the application.
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