SINGAPORE: The Monetary Authority of Singapore (MAS) is proposing a regulatory framework for retail investors to invest in private market investment funds, it announced on Thursday (Mar 27).
This would provide retail investors with more investment choices, said the regulator, adding that it has observed growing interest from retail investors for such investments.
Experienced industry players are also interested in offering private market investment fund products to retail investors, said MAS in a press release.
A private market investment fund is a fund that invests in private assets, or ones not traded on public exchanges. Under the current regulatory framework for funds, retail investors in Singapore have “limited access” to private market investments such as private equity, private credit and infrastructure, said MAS.
The proposal will equip investors with a wider variety of choices in building well-diversified portfolios while creating a pathway for the potential listing of private market investment funds, said MAS in the press release.
Under the proposal, two types of fund structures are being considered.
The first is a direct fund, which makes direct private market investments. This, said MAS, allows for greater visibility of the underlying assets
The second option is a long-term investment fund-of-funds structure, which primarily invests in other private market investment funds.
This would be beneficial for investors who want to tap on the fund manager’s expertise in selecting and monitoring a diversified portfolio of private market investment funds.
MAS is seeking feedback on the proposed regulatory framework, especially since the two structures may need different regulatory safeguards.
“MAS is also seeking views on the scope of private market investment assets that can be suitably offered to retail investors,” it said in the press release.
Comments can be submitted via the FormSG link by May 26.
