What Qualifications and Experience Are Required to Become a Fund Manager in Singapore?

What Qualifications and Experience Are Required to Become a Fund Manager in Singapore?


Introduction


Singapore’s position as a leading financial centre is built on strong regulation, professional standards, and market integrity. For individuals and firms seeking to operate in fund management, meeting the Monetary Authority of Singapore’s (MAS) expectations on qualifications and experience is a critical first step.

MAS does not apply a one-size-fits-all rule. Instead, it assesses whether key individuals and management teams are fit and proper to conduct regulated activities. Understanding these requirements early helps applicants structure their teams correctly and avoid delays during the licensing process.

MAS Expectations for Fund Management Professionals


MAS focuses on competence, integrity, and experience when reviewing fund management licence applications. The regulator evaluates not only academic qualifications but also practical industry exposure and the ability to manage investment and operational risks.

Under the MAS licensing requirements for fund managers in Singapore, applicants must demonstrate that their teams have sufficient expertise to manage funds responsibly, protect investor interests, and comply with ongoing regulatory obligations.

Academic and Professional Qualifications


Relevant Educational Background


While MAS does not mandate a specific degree, it expects senior management and licensed representatives to have relevant educational backgrounds. Common fields include finance, economics, accounting, business administration, or law.

A strong academic foundation supports MAS’s assessment that individuals understand financial markets, investment principles, and regulatory concepts.

Professional Certifications


Professional qualifications strengthen an applicant’s profile. Certifications such as CFA, CAIA, CPA, or ACCA are often viewed positively, particularly for portfolio managers and risk-focused roles.

Although not compulsory, these credentials demonstrate technical competence and commitment to professional standards.

Continuing Professional Development


MAS also values ongoing learning. Individuals involved in fund management should stay updated on regulatory developments, market trends, and risk management practices through continuous professional education.

Ongoing development reflects a proactive approach to compliance and professionalism.

Experience Requirements for Key Roles


Directors and Chief Executive Officer


MAS expects directors and the CEO to have relevant experience in fund management or related financial services. Typically, this includes several years of experience in investment management, financial advisory, or capital markets roles.

Beyond technical skills, MAS assesses leadership capability, governance experience, and the ability to oversee a regulated business.

Portfolio Managers and Investment Professionals


Portfolio managers should demonstrate hands-on experience in managing investment portfolios, executing trades, and implementing investment strategies. Experience should be relevant to the asset classes and strategies proposed in the business plan.

MAS may also assess past performance, decision-making responsibility, and familiarity with risk controls.

Compliance and Risk Management Personnel


Dedicated compliance and risk management resources are essential. MAS expects individuals in these roles to have experience with regulatory compliance, internal controls, and risk frameworks within financial institutions.

Even if some compliance support is outsourced, internal oversight must be provided by suitably experienced personnel.

Fit and Proper Assessment by MAS


Integrity and Regulatory Track Record


MAS conducts thorough background checks on key individuals. This includes reviewing past regulatory issues, disciplinary actions, or criminal records.

A clean regulatory and professional history is critical, as integrity is a core component of MAS’s fit and proper assessment.

Financial Soundness


Individuals in key roles must also demonstrate financial soundness. MAS reviews bankruptcy history and financial conduct to assess whether individuals can responsibly manage investors’ funds.

Financial integrity supports trust in the firm’s governance and operations.

Commitment of Time and Resources


MAS expects key individuals to devote sufficient time to their roles. Overcommitment to multiple directorships or roles may raise concerns about effective oversight.

Clear role definitions and time commitment help satisfy MAS’s expectations.

Team Composition and Collective Experience


Importance of a Balanced Management Team


MAS evaluates the collective experience of the management team rather than focusing on individuals in isolation. A well-rounded team with complementary skills in investment, risk, compliance, and operations is viewed favourably.

This approach recognises that fund management is a team-based activity requiring diverse expertise.

Experience Aligned with Business Model


The team’s experience must align with the proposed investment strategies and target investors. For example, managing retail funds requires different skills and regulatory awareness compared to managing institutional or accredited investor funds.

Alignment between experience and business model reduces regulatory risk.

RFMC vs LFMC Considerations


Requirements for RFMCs


Registered Fund Management Companies (RFMCs) generally face slightly lower thresholds, as they manage funds for accredited or institutional investors within prescribed limits. However, MAS still expects adequate experience and competence.

RFMC applicants must demonstrate that their teams can manage risks appropriate to their scale and scope.

Requirements for LFMCs


Licensed Fund Management Companies (LFMCs), especially those serving retail investors, face higher expectations. MAS applies more stringent scrutiny to management experience, governance structures, and compliance capabilities.

The level of experience required increases with the complexity and risk profile of the business.

Common Gaps Identified by MAS


Insufficient Relevant Experience


One common issue is applicants relying solely on academic qualifications without sufficient practical experience. MAS places significant weight on real-world exposure and decision-making responsibility.

Addressing this gap may require hiring experienced professionals or advisors.

Weak Compliance Expertise


Another frequent challenge is inadequate compliance experience within the team. MAS expects compliance to be embedded in operations, not treated as an afterthought.

Strengthening compliance resources early improves approval prospects.

Overreliance on Outsourcing


While outsourcing is permitted, MAS expects internal accountability. Overreliance on external providers without internal expertise may raise concerns during the review process.

Best Practices to Meet MAS Expectations


Early planning is essential. Applicants should conduct an internal assessment against regulatory expectations before submitting their application.

Strengthening the team, investing in training, and clearly documenting roles and responsibilities demonstrate readiness to meet qualifications needed to start a fund management company in Singapore and operate compliantly over the long term.

Conclusion


Meeting MAS qualification and experience requirements is a foundational step in establishing a fund management business in Singapore. The regulator looks beyond formal credentials, focusing on practical experience, integrity, and the ability to manage risk responsibly.

By assembling a capable, balanced management team and aligning expertise with the proposed business model, applicants can significantly improve their chances of securing regulatory approval and building a sustainable fund management operation.

Leave a Reply

Your email address will not be published. Required fields are marked *