The Monetary Authority of Singapore (MAS) – the country’s central bank – today revealed a streamlined framework for the regulation of VC fund managers.
The relaxed requirements for managing VC funds are intended to make it easier for startups to access growth capital.
The revised rules largely reflect proposals put forward by MAS alongside a public consultation earlier this year, after the Singaporean government’s Committee on the Future Economy (CFE) recommended that VC regulation be simplified in order to encourage more investment into the country.
Previously, VC fund managers have been treated similarly to managers of other types of investment fund – with the authorization process for new fund managers sometimes taking up to 12 months.
After the CFE published its report back in February, MAS noted that VC investment activities are substantially different from other fund types, since they exclusively invest in unlisted companies that are usually less than five years old, and do not accept new subscriptions after the close of a fund.
Moreover, it is typically only accredited and institutional investors that are able to participate in VC funding activities.