A new regulatory framework will be put in place.
The Monetary Authority of Singapore (MAS) is working on initiatives to provide greater support to the city-state's asset management industry.
Speaking at the Investment Management Association of Singapore's (IMAS) 17th Annual Conference, Senior Minister of State for Law and Finance Indranee Rajah said that the central bank will roll out a couple of new measures initiatives to support the industry.
First, the central bank will introduce a new regulatory framework for open-ended investment companies (OEIC).
"An OEIC framework offers a more efficient fund administration structure for asset managers who domicile their funds in Singapore, compared to what is currently provided for under the Companies Act," Rajah said.
"The OEIC framework is therefore expected to encourage more asset managers to domicile their funds here and promote the development of the fund administration industry in Singapore," she added.
The framework is targeted to be rolled out within a year.
The central bank will also enhance its external fund manager programme. The new programme will offer stronger incentives to fund managers who are committed to deepening their presence in Singapore.
"The proposals to introduce an OEIC framework and to enhance the EFM programme are some of the on-going initiatives that MAS, in partnership with the industry and other stakeholders, is working on to consolidate Singapore’s position as Asia’s premier fund management hub now and into the future. The long term prospects remain positive,” Rajah noted.
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