Singapore Hedge Fund Proposal
Singapore Proposes Rules that Raise Hedge Funds' CostsAlternative Investment Management Association, 5-7% of Singapore's 140 hedge funds only have one fund manager and would be required to add at least another manager. Hedge funds would also have to maintain a minimum of $182,000 in capital. Hedge funds would have 18 months to comply with these and other rules in the regulation.
Responding to a Reuters query, AIMA said 5-7 percent of about 140 Singapore-based hedge funds have only one fund manager and will need to find a second to comply with new regulations proposed by the Monetary Authority of Singapore (MAS).
This week, MAS proposed to replace its "exempt fund manager" regulatory regime for smaller funds with a new set of rules requiring all firms to have at least two full-time staff in Singapore. They are required to have a minimum of five years experience in fund management.
The new rules also require firms maintain a base capital of least S$250,000 ($182,200) at all times, which "should not be considered onerous for a serious player in the fund management business", according to AIMA.
Firms with assets under management exceeding S$250 million or that manage funds for retail investors must comply with additional rules such as employing a full-time compliance officer in Singapore and setting aside risk-based capital. Source