In Singapore, entities that deal in capital markets products need to hold a capital markets services (CMS) licence under the Securities and Futures Act (SFA) administered by the MAS. However, there are certain exemptions that entities could rely on from requirement to hold CMS licence. e.g dealing in bonds, units in a collective investment scheme (funds) and commodities OTC derivatives if these activities are carried out for a certain class of investors.
Market operators are also able to rely on available exemptions. Market operators that facilitate offers or invitation to sell, purchase or exchange commodities OTC derivatives or commodities block futures do not need to be recognised by the MAS.
Certain exemptions are class exemptions while for other exemptions, entities are required to notify the MAS before the commencement of the exempted activities.
How we help Exempt Entities
We work with both exempt capital markets entities and exempt market operators to manage their compliance needs.
Exemption – we have local expertise to assist new entrants to scope their activities in Singapore (broking model, product scope etc.), and set out the position with regards to the exemption regime under the SFA. We will also project manage the notification to the MAS, including helping you with questions from the regulator.
Compliance support – we partner with exempt entities to meet their local compliance obligations, through ongoing compliance advisory, implementation support, focused compliance reviews, and short-term resourcing.
Market abuse – Market conduct rules and regulations are applicable to exempt entities. We help exempt entities to develop market abuse risk assessments, establish effective controls, calibrate and implement surveillance solutions.
Financial Crime – We help exempt entities meet their AML/CFT obligations and ensure strong controls are in place. We can prepare key documentation including, AML/CFT risk assessments, frameworks, policies and procedures.