Asia Newsletter | February 2023

NEWSLETTER: In this edition of our newsletter, we take a look at findings from the recent MAS round of inspections on Venture Capital Fund Managers (VCFMs) in Singapore. The VCFM regime has provided a streamlined and, therefore, slightly faster-to-market option for certain types of fund manager, with quicker MAS processing time for a VCFM licence (three months) as compared to LFMC or RFMC (five months) which should contribute to the overall growth of the industry. The inspections tell us, as ever, the MAS is careful to balance being business friendly and protecting the market and consumers.

In Hong Kong meanwhile, notable is the publication of the FSTB consultation on enhanced regulation of crowdfunding activities. The proposals suggest a rather innovative solution to try to bring together the patchwork of existing law when crowdfunding. Among many other regulatory measures, these can potentially trigger SFC regulated activities, moneylending activity under the Money Lender Ordinance or even banking activity regulated by HKMA.

The backbone of the proposed approach is to establish a new Crowdfunding Affairs Office (CAO), and part of the consultation asks if the CAO should be given its own regulator-like enforcement powers enabling it to prosecute. The jury is possibly out as to whether adding a new CAO body will increase or reduce the complexity for crowd funders, but an interesting development all the same.

Don’t miss our other global updates below, including the SEC’s ambitious rulemaking agenda.

Rebecca Thorpe
Chief Executive Officer

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