MAS to loosen rules for VC fund managers

VC managers' directors and representatives no longer need at least five years of experience in fund management.

The Monetary Authority of Singapore (MAS) loosened some rules for venture capital (VC) fund managers to shorten the authorisation process.

MAS will no longer require VC managers to have directors and representatives with at least five years of relevant experience in fund management.

They will also not be subjected to the capital requirements and business conduct rules that currently apply to other fund managers.

MAS will still retain regulatory powers to deal with errant VC managers.

In order to qualify for the VC manager regime, a VC manager has to offer only to accredited or institutional investors and meet three other characteristics.

First, the VC must invest in business ventures that are not listed on a securities exchange. It must also invest at least 80% of committed capital in securities that are directly issued by startups that are no more than ten years old.

Lastly, the units of their funds must not available for a new subscription after the close of fund-raising must be redeemed at the end of the fund life.