Investment Funds in Singapore

Foreign investors targeting the financial industry in Singapore can choose to set up investment funds here. With a highly-regulated financial sector, Singapore is an excellent financial center in Southeast Asia, being commended various times for the assistance it offers to foreign enterprisers.

Those who want to open investment funds in Singapore have several options and must also comply with the laws related to this industry. Our Singapore company formation specialists can offer information on the investment funds industry in the city-state.

Legislation related to investment funds in Singapore

Foreign professional investors who want to start investment funds in Singapore must comply with the following laws:

• -          the Code for Collective Investment Schemes Act, also known as the CIS Regulations;
• -          the Securities and Futures Act;
• -          the Financial Advisers Act;
• -          the Financial Advisers Regulations.

The Singapore Company Act also provides for the type of structures which can be used when opening an investment fund. Speaking of investment vehicles, at the beginning of the year the government included a new type of company for the incorporation of investments funds: the variable capital company. Our company registration agents in Singapore can offer more information on this matter.

Types of investment funds in Singapore

The following types of investment funds can be established in Singapore:

• -          open-ended retail funds;
• -          closed-ended retail funds;
• -          foreign funds.

These types of funds can further be divided in various sub-types, among which equity and hedge funds are among the most appreciated in Singapore.

Requirements to start an investment fund in Singapore

In order to set up a Singapore investment fund, an investor must comply with a few requirements imposed by the Monetary Authority of Singapore, the main regulatory body for the financial markets in the city-state. Among these requirements are:

• -          selecting one of the available types of companies which can be registered as investment companies;
• -          applying for a capital markets license;
• -          appointing a manager who will administer the fund.

For full information on how to create an investment fund in the city-state, please feel free to contact our company formation advisors in Singapore.