The new framework, which is expected to be rolled out within the next 12 months, aims to encourage more asset managers to base their funds in Singapore and promote the development of the city-state’s fund administration industry, said senior minister of state for law and finance Indranee Rajah.
Addressing delegates at the 17th annual conference of the Investment Management Association of Singapore (IMAS), Rajah said: “Singapore plays a key role in developing regional initiatives that provide asset managers here with enhanced access to more markets. These include the Asean collective investment scheme and the Asia region funds passport scheme.”
“A new Oeic structure would help MAS build on its current critical mass, depth and level of maturity.”
More efficient structure
She continued: “An Oeic framework offers a more efficient fund administration structure for asset managers who domicile their funds in Singapore, compared to what is currently provided for under the Companies Act.
“For example, an Oeic caters to the core activities of an investment fund, which include the issuance and redemption of shares on a regular basis, valuation of a fund’s net assets and the appointment of fund managers and fund custodians.
“It also allows an umbrella fund structure containing several sub-funds to be set up. These sub-funds can be operationally distinct with different investment objectives, investors as well as assets and liabilities.”
