How to apply for a Capital Markets Service (CMS) Licence?
What are the admission criteria for a CMS license application?
The financial intermediary must have the following:
• Minimum of 2 directors, at least one is resident in Singapore.
• Chief Executive Officer with least 10 years of relevant experience and is resident in Singapore.
• Minimum of 2 full-time Singapore-based individuals for each regulated activity (except REIT management). Such individuals are required to be appointed as representatives under the SFA. The Monetary Authority of Singapore (MAS), that is the regulator in Singapore generally responsible for governing and enforcing financial markets regulations, is in charge of applications for (and the supervision of) capital markets intermediaries. As part of the application process, the MAS will be assessing each license application by taking into account the following factors:
• Fitness and propriety of the applicant, its shareholders and directors;
• Track record and management expertise of the applicant and its parent company or major shareholders; • Ability to meet the minimum financial requirements prescribed under the SFA;
• Strength of internal risk management and compliance frameworks; and
• Business model / plans and projections and the associated risks.
Whilst the MAS has published several guidelines to provide more clarity on the license application process, each financial intermediary’s model and activities may be different from another. Our licensing professionals will be able to provide you with appropriate advice to help you navigate the license application process.