The MAS has provided further guidance in relation to the simplified regulatory regime for VC managers.
The Monetary Authority of Singapore (MAS) has on 27 November 2017 provided further guidance in relation to the simplified regulatory regime (VCFM Regime) for managers of venture capital funds (VC managers). Please see the elexica article on "Simplified rules for venture capital managers" for more detail.
The MAS has revised the Guidelines on Licensing, Registration & Conduct of Business for FMCs (Guidelines), and the FAQs on the Licensing and Registration of Fund Management Companies (FAQs).
In particular, the Guidelines clarify that VC managers are required to have at least two directors, at least one of whom should be full-time and resident in Singapore; and at least two full-time resident professionals and representatives, who may include the directors.
The Guidelines also provide that VC managers should avoid any conflicts of interest and, where such conflicts arise, ensure that they are resolved fairly and equitably.
The revised FAQs issued on 27 November 2017 have also clarified that a fund manager that acts as an investment adviser or sub-adviser, or provides research to another investment manager, may operate under the VCFM Regime if the advice and research it provides relate to a fund that meets the eligibility criteria of a venture capital fund.
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