Capital Markets Services Licence
The Capital Markets Services Licence is issued by the Monetary Authority of Singapore (MAS) for businesses engaging in regulated activities such as dealing in securities, fund management, and providing custodial services. Validity is agency-confirmed, with processing times available on the MAS website.
- Processing time
- available on the agency's website
- Issuing authority
- MONETARY AUTHORITY OF SINGAPORE (MAS)
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Who needs the Capital Markets Services Licence
This licence applies to Singapore businesses registered under the following SSIC industry codes:
- Required to operateDivision 64 — FINANCIAL SERVICE ACTIVITIES (EXCEPT INSURANCE AND PENSION FUNDING)
Includes: 64110 Central bank, 64120 Full banks, 64130 Wholesale banks, 64140 Merchant banks
Includes: 66110 Securities and commodities exchange, 66121 Stock, share and bond brokers and dealers, 66122 Foreign exchange brokers and dealers, 66123 Gold bullion brokers and dealers
What's involved in getting the Capital Markets Services Licence
The scope of the application — what must be in place, how the agency reviews, and where applications typically stall.
What this licence allows the business to do
The Capital Markets Services Licence permits businesses in Singapore to engage in various regulated activities under the Securities and Futures Act. This includes dealing in securities, trading in futures contracts, leveraged foreign exchange trading, advising on corporate finance, fund management, and providing custodial services, among others. Holding this licence is essential for any entity looking to operate legally in these financial sectors.
What must be in place before the licence can be granted
Before the licence can be granted, the business must ensure compliance with the Securities and Futures Act. This includes having the necessary infrastructure, such as a physical office, qualified personnel, and appropriate internal controls. Additionally, the business must demonstrate that it meets the regulatory requirements set forth by the Monetary Authority of Singapore (MAS), which may include having a robust risk management framework and compliance procedures in place.
How the agency reviews and decides
The MAS conducts a thorough review of the application, which includes assessing the business's operational capabilities, financial standing, and adherence to regulatory standards. The agency may also conduct interviews with key personnel and request additional documentation to ensure that the applicant is fit to hold the licence. This review process is critical to maintaining the integrity of Singapore's financial markets.
Common reasons applications stall
Applications for the Capital Markets Services Licence can stall for several reasons. Common issues include incomplete documentation, failure to meet the MAS's financial requirements, or inadequate internal controls. Additionally, if the business's proposed activities do not align with the regulated activities specified in the Securities and Futures Act, this can lead to delays or rejections. Engaging with professionals who understand the regulatory landscape can help mitigate these risks.
Capital Markets Services Licence FAQ
Do I need this licence to start operating?
Yes, any business intending to engage in regulated activities under the Securities and Futures Act in Singapore must obtain a Capital Markets Services Licence, unless an exemption applies. Operating without this licence can lead to significant legal repercussions.
What can my business do once licensed?
Once licensed, your business can legally engage in various regulated activities such as dealing in securities, fund management, and providing custodial services. This licence enables your business to operate within Singapore's financial markets and offer services to clients.
What happens if I operate without it?
Operating without a Capital Markets Services Licence can result in severe penalties, including fines and potential criminal charges. It can also damage your business's reputation and hinder future opportunities in the financial sector.
How does this fit relative to incorporating my company?
Obtaining a Capital Markets Services Licence is a separate process from incorporating your company. While incorporation is the first step in establishing a business entity, securing this licence is essential for those intending to engage in regulated financial activities. It is advisable to plan for both processes concurrently.
What's the most common reason applications get rejected?
The most common reason for rejection is the failure to meet the regulatory requirements set by the Monetary Authority of Singapore. This can include inadequate internal controls, incomplete documentation, or a lack of qualified personnel to manage the licensed activities.
Can a foreign-owned company hold this licence?
Yes, foreign-owned companies can hold a Capital Markets Services Licence in Singapore. However, they must comply with all regulatory requirements and demonstrate that they have the necessary infrastructure and personnel in place to operate within the financial sector.
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Other MAS licences
Application for Bank Representative Office
The Application for Bank Representative Office is required by the Monetary Authority of Singapore (MAS) for foreign banks wishing to establish a liaison office in Singapore. This office can conduct market research and feasibility studies but cannot engage in any business transactions. Validity is agency-confirmed, with processing times available on the MAS website.
Approved Clearing House (ACH) or Recognised Clearing House (RCH)
The Approved Clearing House (ACH) or Recognised Clearing House (RCH) licence is issued by the Monetary Authority of Singapore (MAS) for companies wishing to operate a clearing facility under the Securities and Futures Act 2001. Validity is confirmed by the agency, with processing times available on the MAS website.
Approved Exchange (AE) or Recognised Market Operator (RMO)
The Approved Exchange (AE) or Recognised Market Operator (RMO) licence is issued by the Monetary Authority of Singapore (MAS) for entities operating as exchanges or market operators. The validity is confirmed by the agency, and processing times can be found on the MAS website.
Financial Adviser's Licence
The Financial Adviser's Licence is required by the Monetary Authority of Singapore (MAS) for companies wishing to conduct regulated activities under the Financial Advisers Act 2001 (FAA). The validity period is confirmed by the agency, and processing time details can be found on the MAS website.
Insurer and Insurance Broker Licence
The Insurer and Insurance Broker Licence is required by the Monetary Authority of Singapore (MAS) for entities engaging in insurance activities, including insurers and insurance brokers. The validity period is confirmed by the agency, and processing times can be found on the MAS website.
Licensing and Authorisation for Banking Business
The Licensing and Authorisation for Banking Business is required by the Monetary Authority of Singapore (MAS) for financial institutions wishing to conduct banking business in Singapore, including setting up wholesale or merchant banks. Validity is agency-confirmed, with processing time available on the MAS website.