Regulations for representatives

    Can a holder of a capital markets services licence have representatives based outside Singapore?

    Representatives of a Singapore-based CMS licence holder regulated by MAS can be based outside Singapore.

    MAS, however, requires the CMS licence holder to provide reason(s) for the individual to be based overseas (section on "Overseas-based Representative" in Form 3A). We also experienced instances where MAS limited the number of overseas-based representatives for an LFMC, presumably to ensure that the core of the Singapore-licenced company remains in Singapore.

    The individual carrying on business in any type of regulated activity on behalf of the CMS licence holder, even carrying out such activity abroad, must be registered with MAS as a representative (sec. 99B(3) SFA). The representative also remains restricted to carrying out regulated activities for not more than one principal unless otherwise approved by MAS (sec. 99J(1) SFA) or if the principals are related corporations (sec. 99J(2) SFA). Furthermore, the representative remains subject to all obligations under Singapore regulations. No difference in treatment (from a Singapore regulatory perspective) between a representative based locally and a representative based abroad is indicated.

    Nonetheless, the CMS licence holder must also be mindful of local regulations applicable to its representatives based outside Singapore, including cross-border regulations regarding the solicitation and execution of the CMS licence holder's services for customers in other jurisdictions.