The Monetary Authority of Singapore (MAS) highlighted that it will develop the initiative with the China Securities Regulatory Commission following their recent Supervisory Roundtable, allowing Singapore-domiciled funds to be sold into China and Mainland-domiciled funds to be sold into Singapore.
The Singapore-China MRF initiative is fully aligned with Singapore’s ambitions to be a leading international wealth management hub and an Asian hub for fund management and domiciliation, as outlined in the Industry Transformation Map (ITM) for financial services announced by MAS on 30 October 2017.
“Many global asset managers are already present in Singapore and will likely be very supportive of the scheme to gain access to Mainland China”.
said Rémi Toucheboeuf, Head of Product, Asset and Fund Services Asia at BNP Paribas Securities Services.
Singapore is already an active supporter of fund passport schemes. Along with Malaysia and Thailand, Singapore was one of the founding participants of the ASEAN Collective Investment Scheme (ASEAN CIS), which went live in August 2014. Singapore also remains an observer of the Joint Committee meetings for the Asia Regional Funds Passport (ARFP), which is scheduled to launch at the end of 2017.
“While negotiations for the ASEAN CIS and ARFP schemes were complicated by the number of countries involved, establishing the Singapore-China MRF could be a more straightforward process. We are optimistic that as a bilateral arrangement between Singapore and China, negotiations will be simpler than for the multi-market fund passport schemes”.
said Mr Toucheboeuf.
- The 2nd MAS-CSRC Supervisory Roundtable was held in Singapore on 31 October 2017.
- On 30 October 2017, MAS released an Industry Transformation Map for its financial services industry. Aims including developing Singapore into a centre of excellence for wealth management technology and innovation, and to position the city as an Asian hub for fund management and domiciliation.
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