Fund Management

Although the terms are not conclusively defined, external or independent asset managers (“EAMs” or “IAMs”) provide asset management services for high net worth individuals (“HNWIs”). Multi-family offices (“MFOs”) generally offer broader services to their clients beyond asset management, including for example structuring of entities, accounting, operational management of particular assets or even concierge services.

Both types of service providers carry out the same kinds of regulated activities under Singapore financial regulation: They manage the assets of multiple clients on a discretionary basis, i.e. they take the investment decisions on behalf of the client, or they provide financial advice to the client, i.e. they make investment recommendations and the client takes the decision. Under Singapore financial regulations, the first activity falls under “fund management” and the second activity is providing a “financial advisory service”. Both activities require licensing by the Monetary Authority of Singapore (“MAS”) or exemption thereof.