Articles and Events Summary
[Webinar Recap] A Quick Guide to Variable Capital Company (VCC)
On 15 July 2020, Argus Global collaborated with DBS Bank and In.Corp for a Live Webinar on the topic of Variable Capital Company (VCC). Nithi Genesan, Director of Compliance at Argus Global was one of the speakers at the Webinar. The session was highly informative and relevant.
You can view the webinar here.
MAS Consults on Environmental Risk Management Guidelines for Financial Institutions
Environmental risk has been recognized as a key global risk in recent years. It not only gives rise to reputational concerns, but also bears a financial impact on financial institutions through physical and transition risk. MAS has launched a set of three consultation papers on its proposed Guidelines on Environmental Risk Management for banks, asset managers and insurers and have identified three areas of proposed changes.
Read the details here.
Launch of FAQ section on Argus Website
Financial and Compliance matters in Singapore can sometimes be complex and confusing. We are often asked similar questions by our clients, which prompted us to launch an FAQ (Frequently Asked Questions) section on our website giving details on Singapore Fund Management Company (FMC), Variable Capital Company (VCC) and Singapore Payment Services Act (PSA).
Check out the FAQ Section related to Financial and Compliance matters here.
External Asset Managers in Singapore
External Asset Managers (EAM) enable clients to place their money with their choice of bank they prefer to use or recommended by the EAM. The client givens an EAM authority and power of attorney as a third party to represent them in managing the investment portfolio and asset allocation. In some instances, they come with a bank that they currently use. At all times, the money remains in the name of the client but the EAM makes decisions on how the assets should be managed.
Check out a short video on EAMs here.
Setting up Variable Capital Company (VCC) in Singapore
Singapore introduced an alternative fund framework, Variable Capital Company (VCC), to encourage more funds to be domiciled in Singapore and enhance the jurisdiction’s value as an international fund management centre. VCC came into operation in Singapore on 14 January 2020 which allows set up of collective investment schemes, whether open-end or closed-end.
Check out a short video on VCC here.
MAS revokes licence of Apical Asset Management for AML/CFT breaches
On 28 July 2020, the Monetary Authority of Singapore (MAS) revoked the Capital Markets Services (CMS) licence of Apical Asset Management Pte. Ltd. (AAMPL) for serious breaches of MAS’ Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) requirements. Based on their findings, MAS assessed that AAMPL has fundamentally breached its duty as a CMS licence holder to comply with the laws and rules governing its operations, warranting a revocation of its CMS licence.
To read the full article, please click here.
15 July 2020 – Strengthening Capital Markets Intermediaries’ Oversight over AML/CFT Outsourcing Arrangements
This guidance paper sets out MAS’ supervisory expectations of sound practices where AML/CFT control functions are outsourced. The paper is based on inspections of capital markets intermediaries, but the takeaways are applicable to other financial institutions, with the appropriate calibrations.
To view the paper, please click here.
15 July 2020 – Remote Gambling Act Order
Payment Blocking Order issued by the MAS to financial institutions, pursuant to section 21(3) of the Remote Gambling Act 2014, effective 22 July 2020.
To view the order, please click here.
21 July 2020 – Consultation Paper on the New Omnibus Act for the Financial Sector
This consultation seeks views on the harmonised and expanded power to issue prohibition orders, the regulation of virtual asset service providers created in Singapore for anti-money laundering and countering of financing of terrorism purposes, the harmonised power to impose requirements on technology risk management, and the provision of statutory protection from liability to mediators, adjudicators and employees of an operator of an approved dispute resolution scheme. MAS invites participants in the financial industry and other interested parties to submit comments by 20 August 2020.
To view the consultation paper, please click here.
27 July 2020 – CMI 32/2020 Good Practices for Disclosure of Actively Managed Funds
This circular sets out good disclosure practices for actively managed funds, following a thematic review carried out by the Monetary Authority of Singapore (MAS) on equity funds offered to retail investors. These good practices relate to disclosures of the investment objective and the extent to which the portfolio deviates, or can deviate from the reference benchmark, as measured in part by quantitative metrics such as active share and tracking error.
To view the circular, please click here.
28 July 2020 – Exemptions issued under s337(2) SFA – 2Q2020
This document lists the exemptions issued under section 337(2) of the Securities and Futures Act for the period from 1 April 2020 to 30 June 2020.
To view the exemptions, please click here.
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