Further guidance on the simplified venture capital manager regime

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.

Latest amendments

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).

Guidelines

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.

FAQs

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.

If you have any questions or would like to find out more, please contact us.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.