MAS sets criteria for managers in new Singapore hedge fund scheme

The Monetary Authority of Singapore has outlined the criteria it will use to select investment managers for a new hedge fund programme aimed at attracting firms to open or expand operations in Singapore. The details were provided in a written parliamentary reply dated Sept. 8 from Gan Kim Yong, deputy prime minister and MAS chairman.

MAS will evaluate managers on the scale and nature of activities they plan to run in Singapore, their plans to develop investment capabilities locally, and their approach to hiring and training Singaporean staff. The authority will also take managers’ investment strategies into account.

Appointed firms will be monitored against the development commitments they make when joining the programme. MAS will review fund performance as part of assessing whether the programme meets its objectives, but selection will not rely solely on past returns.

The regulator intends to measure how selected managers contribute to Singapore’s asset management ecosystem through local investment and trading that involve other financial intermediaries. Managers will be expected to present concrete plans for the type and scale of Singapore operations and for building local investment teams.

MAS is consulting market participants and has not published detailed eligibility rules or a timetable for implementation. Singapore’s asset management industry grew at a compound annual rate of 7.5% over the past five years to almost SGD7 trillion (about $5.5 trillion). MAS noted hedge funds form a growing part of the sector. The authority will monitor appointed managers’ adherence to their stated development plans and assess outcomes against the programme’s aims.