Singapore Management Person Registration Exemption Seize New Wealth Management Opportunities

Singapore, as a global financial hub, has been continuously strengthening its position in the wealth management sector in recent years. In 2025, the Monetary Authority of Singapore MAS announced a registration exemption policy for certain qualified asset management companies, marking a key step in further developing the local wealth management industry. This article will conduct an in-depth analysis of the policy background, actual impact, and future opportunities, exploring how to seize this new opportunity.

1. Policy Background and Core

According to the latest announcement released by MAS in May 2025, starting from July 1, 2025, qualified asset management companies can apply for a registration exemption, meaning they do not need to apply for a formal Capital Markets Services License CMS to conduct certain specific types of asset management activities. This policy mainly targets small-scale, low-risk private funds and family offices.

According to The Straits Times, this policy adjustment aims to reduce compliance costs and enhance Singapore's competitiveness in the global wealth management market. MAS noted that this move helps attract more international asset management institutions to relocate their operations to Singapore, especially those looking to establish regional headquarters or operational centers in the Asia-Pacific region.

2. Market Changes Brought by the Policy

1. Reduced Compliance Costs, Attracting Foreign Investment

Previously, many small asset management companies chose to set up operations in other offshore centers with lower regulatory costs due to high licensing fees and ongoing compliance expenses. Now, with the implementation of the registration exemption policy, these companies can more easily establish branches or offices in Singapore, thereby benefiting from Singapore's mature legal system and well-developed financial infrastructure.

A recent report by Bloomberg showed that the number of family offices in Singapore increased by 18% in the first half of 2025, with many new institutions coming from Southeast Asia and the Middle East. This indicates that the policy adjustment is attracting more high-net-worth individuals and asset managers to focus on the Singapore market.

2. Promoting the Development of the Local Wealth Management Industry

In addition to attracting foreign investment, the policy also helps local wealth management companies expand their business. For some emerging local institutions, the registration exemption means they can enter the market more quickly, reduce initial investment, and focus on product innovation and service optimization.

Singapore also plans to support local companies through the Wealth Management Development Programme, offering training and market promotion, further solidifying its position in the Asian wealth management sector.

3. How Investors Can Seize New Opportunities?

1. Pay Attention to Policy Details and Clarify Applicable Scope

Although the registration exemption policy lowers the entry barrier, not all types of asset management activities are applicable. For example, institutions involved in public fundraising, cross-border sales, or complex derivative transactions still need to comply with existing regulatory requirements. Investors or relevant companies should carefully study the policy details to ensure their business complies with regulations.

2. Choose the Right Partners

For companies wishing to expand their business using this policy, choosing a local partner with rich experience and strong compliance capabilities is crucial. Collaborating with local law firms, accounting firms, or consulting companies can help reduce compliance risks and improve operational efficiency.

3. Leverage Singapore's International Advantages

Singapore has a broad international financial network and a multicultural environment, serving as a bridge between Asia and the global market. Investors can take this opportunity to establish a presence in the Asia-Pacific region, using Singapore as a platform to reach high-growth markets such as China, India, and Southeast Asia.

4. Challenges and Future Outlook

Although the policy brings many benefits, there are also certain challenges. For example, with more institutions entering the market, competition will become fiercer; at the same time, regulatory authorities may gradually tighten their scrutiny of exempted institutions to prevent systemic risks.

However, in the long term, Singapore's advantages in the wealth management sector remain evident. According to data from the Bank for International Settlements BIS, as of the third quarter of 2025, the asset management scale in Singapore has exceeded $1.5 trillion, making it the second-largest asset management center in Asia. Looking ahead, with the continuous improvement of policies and sustained market demand, Singapore is expected to play an even more important role in the global wealth management landscape.

Summary

The introduction of the registration exemption policy for fund managers marks an important step forward for Singapore in the wealth management sector. It not only reduces compliance barriers but also provides more development space for international capital and local institutions. For investors, this is an opportunity worth close attention. Only by thoroughly understanding the policy, accurately positioning the market, and flexibly responding to changes can one seize the initiative in this emerging trend and achieve long-term value growth.