The Monetary Authority of Singapore (“MAS“) has issued a Consultation Paper seeking feedback on its proposed regulatory framework to allow retail investors to access private market investment (“PMI“) funds through authorised long-term investment funds (“LIFs“) with appropriate safeguards (“LIF Framework“). The LIF framework aims to align with the ongoing Equity Market Review by offering retail investors more investment options and potentially enabling private market funds to list on the exchange. Consistent with the global trend towards retailisation of private fund products, there is growing interest from Singapore retail investors in PMI funds. Presently, the regulatory requirements do not allow for the authorisation of a collective investment scheme (“scheme” or “fund“) that are PMIs.
The LIF Framework envisages two possible structures:
- A fund structure that makes direct PMIs (“Direct Fund“). Investors will have greater visibility of the fund’s underlying PMI assets, and be able to assess and choose the PMI manager that they wish to invest with.
- A long-term investment fund-of-funds (“LIFF“) structure that primarily invests in PMI funds. It will benefit investors who may wish to tap on the LIFF manager’s expertise in selecting and monitoring a LIFF’s underlying portfolio of PMI funds.
The two structures may require different regulatory safeguards. The LIF Framework also envisages the offer of both unlisted and listed fund investments.
Comments should be submitted to MAS by 26 May 2025.
This Update provides an overview of MAS’ key proposed requirements under the LIF Framework, and the feedback sought under the consultation. If you have any queries and/or would like to submit feedback, please feel free to reach out to our team members.
For more information, click here to read the full Legal Update.
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