Fund Management Licence in Singapore: CMS, LFMC & VCFM Explained
The licence tiers that let you manage a fund in Singapore — capital, headcount and the post-RFMC rules — and when you don't need your own at all.
A fund management licence in Singapore is the authorisation from the Monetary Authority of Singapore (MAS) that lets a company manage investment funds for clients. The main licence is the Capital Markets Services (CMS) licence for fund management, held by a Licensed Fund Management Company (LFMC). Venture capital managers can instead use the lighter Venture Capital Fund Manager (VCFM) registration. The older Registered Fund Management Company (RFMC) regime was repealed on 1 August 2024.
Crucially, a licence is something the manager holds — not the fund. A VCC is a vehicle, not a licence; it must appoint a licensed manager (a "Permissible Fund Manager"), but that manager can be your own company or an existing one. If your goal is simply to launch a fund quickly, read can you run a VCC without your own licence? first.
What licence do you actually need to manage a fund in Singapore?
Fund management is a regulated activity under the Securities and Futures Act. To carry it on, your company generally needs a CMS licence for fund management — making it an LFMC — unless it qualifies under the VCFM regime or a specific exemption. The right tier depends on two things: who your investors are (accredited/institutional only, or also retail) and what you invest in (venture capital gets its own lighter track).
LFMC Singapore: Licensed Fund Management Company tiers
When people say LFMC Singapore they mean a Licensed Fund Management Company — a company that holds the CMS licence for fund management from MAS. The LFMC is not a single licence but a set of tiers, split by the type of investor you serve. There are two LFMC tiers — the A/I LFMC and the Retail LFMC — sitting alongside the separate VCFM registration for venture capital managers. Choosing the right LFMC tier is the first licensing decision, and it is driven almost entirely by whether you will take retail money.
The two LFMC tiers and the VCFM track
An A/I LFMC serves accredited and institutional investors only; a Retail LFMC may additionally serve retail investors and carries a higher bar. The VCFM is a lighter registration confined to qualifying venture capital funds. The table below sets the three side by side.
| Licence | Who it serves | Base capital | SG-based pros | MAS review |
|---|---|---|---|---|
| A/I LFMC (CMS) | Accredited & institutional investors only | S$250k | ≥2 | ~6 months |
| Retail LFMC (CMS) | Retail + accredited + institutional | S$500k (S$1m if retail CIS) | ≥2 | ~6 months+ |
| VCFM | VC funds (qualifying criteria) | No regulatory minimum | ≥2 | ~4 months |
| RFMC | Repealed 1 August 2024 — transitioned to A/I LFMC via Form 1AR | |||
What is an A/I LFMC?
The Accredited/Institutional LFMC is the workhorse licence for boutique and mid-sized managers. It may serve only accredited investors (high-net-worth individuals and entities meeting MAS wealth/income thresholds) and institutional investors. It carries a S$250k base capital requirement and must maintain risk-based capital of at least 120%. Following the RFMC repeal, the old S$250k AUM cap that limited smaller managers is gone — an A/I LFMC can now scale AUM without an upper bound. For the build-out process, see setting up your own independent asset manager.
What is a Retail LFMC?
A Retail LFMC may additionally serve retail investors. Because retail money carries more protection obligations, the bar is higher: S$500k base capital (rising to S$1m where the manager runs a retail collective investment scheme), more demanding compliance, audit and disclosure requirements, and a track record expectation. Most new boutiques start as A/I and only move to retail when a genuine retail product justifies it.
What is a VCFM and when does it fit?
The Venture Capital Fund Manager regime is a streamlined registration for managers of qualifying VC funds. It has no regulatory minimum base capital and a faster MAS review (around four months), reflecting that VC funds invest in illiquid, non-retail businesses. The trade-off is scope: VCFMs are confined to qualifying VC funds and cannot freely pivot to liquid or retail strategies. The detail — including how the RFMC repeal interacts with VCFM — is on VCFM & the RFMC repeal.
What happened to the RFMC regime?
The Registered Fund Management Company was a lighter-touch registration capped at S$250m AUM and 30 qualified investors. MAS repealed it on 1 August 2024, transitioning existing RFMCs to A/I LFMC status through a streamlined Form 1AR process and removing the AUM cap in the process. New managers can no longer register as an RFMC — the entry point for accredited/institutional managers is now the A/I LFMC. Anyone reading a guide that still presents the RFMC as a live option is reading pre-August-2024 information.
Common requirements across the licence tiers
- At least two Singapore-based professionals — typically a CEO/director and a representative, resident in Singapore.
- Fit-and-proper directors, shareholders and representatives.
- Risk-based capital of at least 120% and the relevant base capital floor.
- A compliance function, independent audit, professional indemnity insurance and proper risk management.
- A physical Singapore office and genuine substance — MAS expects the manager to be run from Singapore.
What are the LFMC application and annual fees?
Separate from the base capital you must hold (S$250k for an A/I LFMC, S$500k-S$1m for a Retail LFMC), MAS charges application and ongoing licence fees. These are modest next to the capital and staffing commitment, but they are the hard numbers competitors rarely publish. The figures below are indicative current ranges — confirm the exact amounts with MAS before applying.
| Fee | Indicative amount | Notes |
|---|---|---|
| CMS licence application fee | ~S$1,000 | Non-refundable, paid with the Form 1 application per regulated activity |
| Representative lodgement fee | ~S$200 per representative | Per appointed representative notified/lodged with MAS |
| Annual licence fee | ~S$2,000-8,000 | Recurring, scaling with the regulated activities and the company's scope |
| Base capital (for context) | S$250k (A/I) · S$500k-1m (Retail) | Held, not a fee — plus risk-based capital of at least 120% |
The fees are not the obstacle — the base capital, the two Singapore-based professionals and the ongoing compliance, audit and PI-insurance burden are what make a licence a serious commitment. That is exactly why many managers launch under an existing manager first (below) and only pay for their own licence once AUM justifies the fixed annual cost.
Licence, or borrow one? The trade-off
Getting your own licence buys control and your own brand, at the cost of capital, headcount and roughly six months of review. Appointing an existing Permissible Fund Manager lets you launch a VCC in weeks with no base-capital lock-up — you keep investment input while the licensed manager carries the regulatory obligations. Many managers start borrowed and licence up later once AUM justifies it. The full comparison, with costs and objection-handling, is on running a VCC without your own licence.
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Speak to a specialist →How licensing connects to the rest of your setup
The licence sits underneath the VCC vehicle and is one of the four building blocks in how to start a fund in Singapore. Once the manager is sorted, most funds layer on a 13O or 13U tax incentive and appoint their service providers. External asset managers often use this licensing decision as the bridge from advising to managing — see from EAM to licensed fund manager.
Frequently asked questions
What licence do you need to manage a fund in Singapore?
To carry on fund management you generally need a Capital Markets Services (CMS) licence for fund management from MAS, held by a Licensed Fund Management Company (LFMC). Venture capital managers can instead register as a Venture Capital Fund Manager (VCFM). The older RFMC regime was repealed on 1 August 2024.
What is the difference between an A/I LFMC and a Retail LFMC?
An A/I LFMC may only serve accredited and institutional investors and carries a base capital requirement of S$250k. A Retail LFMC may also serve retail investors and carries a higher base capital requirement of S$500k (S$1m where it manages a retail collective investment scheme), plus heavier compliance obligations.
Was the RFMC regime abolished?
Yes. MAS repealed the RFMC regime on 1 August 2024. Existing RFMCs were transitioned to A/I LFMC status via a streamlined Form 1AR process, removing the old S$250k AUM cap that applied to RFMCs.
Do I need my own licence to launch a VCC?
No. Every VCC needs a MAS-licensed Permissible Fund Manager, but you can appoint an existing licensed manager rather than getting your own CMS licence. This avoids the base capital lock-up and the multi-month MAS review.
VCC Singapore is an independent informational resource and is not a regulator, law firm or tax adviser. Licensing tiers, capital and headcount requirements are set by MAS and change periodically — confirm the current figures before acting. This page is general information, not legal, tax or financial advice.