Nature of Licensed Fund Management Companies (LFMCs)

What are the financial requirements to qualify as a Licensed Fund Management Company (LFMC)?

According to MAS (Pages)
Accredited/institutional LFMC:
- Minimum base capital of S$250,000
- Required to maintain financial resources which are in excess of its total risk requirements
Retail LFMC:
- Minimum base capital of S$500,000 or higher
- Required to maintain financial resources which are in excess of its total risk requirements

FinReg business tip

There are two subcategories of Licensed Fund Management Companies (LFMCs) - Accredited/Institutional LFMCs and Retail LFMCs. A/I LFMCs carry on business in fund management with qualified investors (as defined under the Securities and Futures Act only) while Retail LFMCs carry on business in respect of all types of investors, including retail investors.