On 20 October 2017, the MAS announced a simplified regulatory regime for managers of venture capital funds (“VCFM”) with immediate effect. The new regime simplifies and shortens the authorisation process for VC managers to enable them to play a greater role in supporting start-up and growth stage businesses. The MAS also updated its “Guidelines on Licensing, Registration and Conduct of Business for Fund Management Companies” and “FAQs on the Licensing and Registration of Fund Management Companies”.
VC managers are no longer required to have directors and representatives with at least 5 years of relevant experience in fund management. VC managers are not subjected to the capital requirements and business conduct rules that currently apply to other fund managers. MAS will focus primarily on existing fit and proper and anti-money laundering safeguards under the SFA. The MAS does retain regulatory powers to deal with errant VC managers.