What procedures to take if my LFMC wants to cease business?
According to MAS (FAQs)
last revised 12 October 2021
The FMC should ensure an orderly winding down of its business prior to cessation. This includes but is not limited to: (i) putting in place communication plans to ensure sufficient notice period has been given to its customers, business partners and other relevant stakeholders regarding its cessation; and (ii) discharging all customer obligations and ensuring that customer assets and/or moneys have been accounted for and returned to customers before it ceases.
The FMC should also ensure that all funds and managed accounts managed or advised by the FMC have been (i) transferred to another fund management company; and/or (ii) liquidated and all underlying assets and moneys returned to their beneficial owners or customers.
An LFMC that intends to cease the conduct of regulated activity is required to file a notice of cessation of business – Form 7 of the SF(LCB)R, not later than 14 days after the cessation of its business.