Monday, October 19, 2009

Singapore to Abolish "Private Manager" Exemption

As reported by Bloomberg, hedge fund managers in Singapore will likely need to be licensed as a result of anticipated Singapore central bank regulation. Hedge fund managers in Singapore have been able to avail themselves of an exemption from holding a capital-markets services license as long as they managed funds on behalf of no more than 30 "qualified" investors, as defined by local laws. The new regulation would remove the current exemption in line with guidelines by the G20 and IOSCO.

While the new regulation is expected to raise the operational costs of hedge funds in Singapore, it is expected that "the potential cost burden will be modest and won’t damage the industry."

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