What is required to offer units in a Collective Investment Scheme?
A Collective Investment Scheme must be authorised/recognised by MAS. An offer of a unit in a CIS must be accompanied by a MAS-registered prospectus and product highlights sheet.
Offers of units in a collective investment scheme (“CIS”) to investors in Singapore are regulated under Division 2 of Part XIII of the SFA . Unless exempted, an offer of units in a CIS must comply with the following requirements:
- The CIS must be authorised (if it is constituted in Singapore) or recognised (if it is constituted outside Singapore) by MAS
- The offer of units in a CIS must be made in or accompanied by a MAS-registered prospectus and product highlights sheet
The CIS and their managers and trustees must also comply with MAS’ Code on Collective Investment Schemes (CIS Code).
You may apply for authorisation of a CIS using Form 1 on OPERA.
MAS may authorise a CIS, if:
The manager holds a capital markets services licence
There is a trustee approved under section 289 of the SFA
You may apply for recognition of a CIS using Form 2 on OPERA.
MAS may recognise a CIS, if:
- The laws and practices of the CIS jurisdiction afford to investors in Singapore, protection equivalent to that provided by authorised schemes
- The manager is licensed or regulated in its principal place of business
- There is an appointed Singapore representative