Is a FMC allowed to conduct central dealing activity for funds managed by its related entities?
Yes for LFMCs, but no for RFMCs.
According to MAS (FAQs),
last revised on 1 March 2022
Yes; an LFMC that conducts central dealing activity for funds managed by its related entities should apply to add to its licence the regulated activity of dealing in capital markets products and indicate the type of financial instruments to be traded or dealt in. The FMC should ensure that it has met the relevant licensing requirements applicable to these activities, and has the requisite risk management systems and controls that are commensurate with the scale and complexity of the central dealing function. An RFMC should not engage in central dealing for funds managed by other persons, including its related entities.