Singapore Releases New Regulations for Securities Crowdfunding Platforms

The Monetary Authority of Singapore (MAS) launched a consultation paper in February last year proposing measures to facilitate access capital for startups and SMEs. With the responses received, 8 June 2016 MAS announced new measures to simplify the use of securities crowdfunding (SCF) for companies that are looking to raise funds, as well as for crowdfunding platform operators.

For platform operators, MAS will simplify the pre-qualifications needed for those raising less than S$5 million within 12 months, allowing them to do that without having to issue a prospectus. The changes will simplify checks needed for investors so that the process can be quicker and easier to execute.

Financial requirements for platform operators who raise funds only from institutional and accredited investors, will be reduced, making it easier for them to be licensed as dealing intermediaries, “as long as they do not handle or hold customer monies, assets or positions, and do not act as principal against their customers”. In practical terms, the minimum capital requirement will be reduced from S$250,000 to S$50,000, the minimum operational risk requirement will be reduced from S$100,000 to S$50,000 and the requirement for a S$100,000 security deposit will be removed.

In conclusion, this represent a positive development for those looking to start a new digital investing platform in Singapore, but it’s not the only good news. Last year the Financial Sector Technology & Innovation (FTSI) scheme launched, committing SGD $225 million ($167 million), in a five year plan to support financial technology innovation. In April MAS announced additional initiatives to boost the country’s position as a global hub for digital finance, with the launch of the first Singapore FinTech Festival, to be held from 14 to 18 November 2016, and it was just last week that MAS and the Australian Securities and Investments Commission (Asic) signed a new cooperation pact, called the Innovation Functions Cooperation Agreement, that will allow fintech firms in Australia and Singapore to speed up the process of entering each other's markets.
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Read the whole article and more details on Crowd Valley News.