Following the lead of governments in the US and Europe, the Monetary Authority of Singapore [MAS] will re-examine its regulation of investment fund managers, including private equity, real estate, and hedge fund managers.
“MAS will consult the public within the next two weeks on proposals to enhance our regulatory regime to ensure that it remains sound and responsive to the changing needs of the various stakeholders in the fund management industry,” MAS said in an emailed statement Monday. “This will include a re-examination of how we regulate investment managers (including alternative fund managers) and the way in which they interact with their investors and other stakeholders. This is essential for the long term and sustainable growth of the fund management industry.”
The process will take “an open and consultative approach with the industry”, and MAS stressed that it is committed to building Singapore as a fund management and alternative investment hub.
Many large private equity fund managers and funds of funds managers have offices in Singapore, including AXA Private Equity, 3i, Actis, Adams Street Partners, and HarbourVest.
MAS said it has set up a dedicated department to supervise intermediaries in the fund management industry, including alternative investment managers, and to drive new regulatory policies for fund management activities.
As the European Union and the United States debate legislation that would overhaul regulation of their financial systems, countries in other parts of the world are following suit. In February, South African Minister of Finance Pravin Gordhan said in a speech that the government was in the process of reforming the country’s financial regulation system, including expanding oversight of “hedge funds, private equity and credit ratings agencies”.