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MAS simplifies rules for VC managers

MAS simplifies rules for VC managers

The Monetary Authority of Singapore (MAS) said a simplified regulatory regime for managers of venture capital funds (VC managers) will come into immediate effect, to facilitate start-ups’ access to capital.

The new framework comes following public consultation on the proposal put forward by the regulatory body earlier this year. It will simplify and shorten the authorisation process for VC managers.

MAS will no longer require VC managers to have directors and representatives with at least five years of relevant experience in fund management. VC managers will also not be subjected to the capital requirements and business conduct rules that currently apply to other fund managers.

In admitting and supervising VC managers, MAS will focus primarily on existing fit and proper and anti-money laundering safeguards under the Securities and Futures Act. It will also retain regulatory powers to deal with errant VC managers.

‘The simplified VC manager regime recognises the lower risks posed by VC managers given their business model and sophisticated investor base,’ said Lee Boon Ngiap, assistant managing director of capital markets.

‘It will enhance the operating environment for VC managers to play a greater role in supporting start-up and growth stage businesses.’

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