The Monetary Authority of Singapore (
MAS) has offered to facilitate the supply of digital advisory services, while following the regulatory framework governing financial advisors and fund managers.
The MAS released a consultation paper on Wednesday, stating that digital advisory firms will not be required to have a separate licence. Instead, these firms will enjoy significant concessions, according to the proposal. It added that digital advisers that engage in fund management and target retail investors will be exempt from the requirements for track record and minimum assets under management (AUM).
Currently, traditional fund managers that serve retail investors must have an AUM of SGD1 billion and a five-year corporate track record to obtain a licence, reports the Business Times.
However, digital advisers must also comply with several safeguards. The proposal says that portfolios must be diversified and contain non-complex assets. Firms’ key management staff must have relevant collective experience in fund management and technology. An independent audit of the business must also be conducted within a year of operation.
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