Licensing for EAM
Licensing requirement for EAM - Advising on Corporate Financing
The capital markets services (“CMS”) licence for advising on corporate finance is required, where the EAM also gives advice relating to the raising of funds by any entity or CIS, relating to the making of an offer to buy or sell specified products, or concerning a merger or take-over. This would most of all be the case, where an EAM also wants to assist its HNWI clients with regards to corporate finance transactions of the clients’ companies.
The EAM should be cautious with regards to conflicts of interest that its corporate finance activities may create vis-à-vis its discretionary and advisory asset management activities and put adequate controls and measures in this regard in place.
Generally, the EAM – even when already holding another licence, or even more in that case – must obtain the appropriate licence (or exemption thereof) from the MAS before starting to carry out the respective activity. Where the EAM already holds a CMS licence for fund management for the discretionary management of segregated accounts, we also strongly recommend that it informs MAS before starting to manage an investment fund although this is covered by the same licence.