The CMS license framework is designed to provide a conducive regulatory environment that supports the integrity of Singapore’s capital market activities.

Singapore’s well-developed infrastructure, political stability and sustainable economic growth are factors attracting inflows of foreign direct investment. This eventually results in a higher demand for capital market services (CMS). Together with the country’s outstanding reputation in capital market, starting a CMS company is a wise decision as it is likely to have a bright future with favourable growth conditions. Singapore’s financial institutions (FIs) need to hold a CMS license to conduct regulated business activities under the Securities and Futures Act (SFA).

Defining CMS License in Singapore

It is under the regulations of the Monetary Authority of Singapore (MAS). All Capital Market Services license holders can conduct regulated activities like fund management and legally enter into a contract.

Licensing Requirements.

As the license applicant, you will have to fulfil the following criteria:

  • At least 2 directors, with 1 of them based in Singapore;
  • CEO with at least 10 years relevant experience, resides in Singapore;
  • At least 2 full-time representatives who are based in Singapore (except for REIT management);
  • Must be able to fulfill the financial requirements that are applicable to the specific regulated activity; and
  • Robust risk management framework and compliance structure.

Are you intend to apply for a CMS license for fund management activities, make sure you read this licensing and registration guidelines.

The Application Procedures

If you are interested to apply for a CMS license, you will need to fill up Form 1 under the Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R).

You will have to pay for an application fee of $1000 which is non-refundable upon submission of application. If the license application gets approved, the license holder will need to pay an annual fee (from $2000 to $8000) depending on the types of regulated activities.

Processing Time for the License

If your application is completed with no missing document, the MAS will take around 4 months to review and process the application. In cases where additional documents are required or submission pack is incomplete, we will need to expect a longer time for MAS to process.

Conclusion

Starting a CMS company in Singapore can be a challenging task due to various admission criteria, ongoing requirements and complicated processes. Also, passing the inspections and assessment of the MAS is never an easy task. That’s where Hub comes into action. We assist you in filling in the forms and guide you through in setting out the best possible business plans for assessment. Now, you can forget the hassle of filling forms and waiting, let us work while you can sit back and relax.

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