Licensing & Business Operations

Under the Securities and Futures Act (SFA), any person who carries on a business in a regulated activity in Singapore must hold a Capital Markets Services (CMS) licence granted by the Monetary Authority of Singapore (MAS), unless exempted. Only a corporation may hold a CMS licence — individuals and partnerships cannot.

The regulated activities are set out in the Second Schedule to the SFA and include, among others: dealing in capital markets products (which covers dealing in securities such as shares and units in a business trust), advising on corporate finance, fund management, real estate investment trust management, product financing, providing custodial services, and providing credit rating services.

A CMS licence is granted for one or more specified regulated activities. A licensee may only conduct the activities stated on its licence; conducting an activity outside the scope of the licence is an offence. MAS may impose conditions or restrictions on a licence and may vary, suspend or revoke it.

For dealing in securities on the SGX-ST, a firm must hold a CMS licence for dealing in capital markets products and separately satisfy SGX-ST membership requirements.

Since the framework took effect, individuals who act as representatives are no longer separately licensed. Instead a principal (a CMS licence holder, bank or other exempt financial institution) lodges a notification with MAS to appoint an individual, and MAS enters the individual in the Public Register of Representatives. A person must not carry on a regulated activity as a representative unless entered in the register or otherwise permitted.

There are three classes. An appointed representative is notified by a principal and, once entered in the register, may carry on the regulated activity for that principal on an ongoing basis. A provisional representative is an individual who is, or recently was, licensed or regulated for the same activity in a comparable overseas jurisdiction for at least and who has relevant experience. Their status runs for a maximum of from the date their name is entered in the Public Register, and that window exists so they can sit and pass the CMFAS papers while already conducting the regulated activity. A is an employee of a related entity of the principal who is currently regulated for that activity overseas. They may be appointed for , with , and the principal can notify the second 3-month block only after the first has started.