MAS FAQs on Licensing and Business Conduct (Non-Fund Management)¶
Source: Frequently Asked Questions on Licensing and Business Conduct (Other Than for Fund Management Companies) Reissued: 11 December 2025 Legislation: Securities and Futures Act (Cap. 289) / Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10)
Disclaimer: These FAQs provide guidance on MAS policy and administration of the SFA and regulations. They do not constitute legal advice.
A) Licensing¶
Q1: What activities are regulated under the SFA?¶
The regulated activities (Second Schedule to the SFA) are: 1. Dealing in capital markets products (securities, units in CIS, derivatives contracts, spot FX for leveraged trading, and such other products as MAS may prescribe) 2. Advising on corporate finance 3. Fund management 4. Real estate investment trust management 5. Product financing 6. Providing custodial services 7. Providing credit rating services
Any person wishing to conduct these activities must obtain the requisite licence under the SFA, unless specifically exempted.
Q2: What types of licences are granted under the SFA?¶
A person wishing to carry on a business in any regulated activity must hold a Capital Markets Services (CMS) licence for that activity. A CMS licence is granted only to a corporation (not individuals). An individual conducting regulated activity for a CMS licence holder must be an appointed, provisional, or temporary representative of that CMS licence holder.
Q3: Is there a need to renew a CMS licence?¶
No. A CMS licence is issued as an electronic licence (e-licence) accessible via the CoRe system on the MAS-Tx portal (https://mas-tx.mas.gov.sg). No renewal is needed. The licence is valid until: - (i) The holder ceases to carry on business in every type of regulated activity (must notify MAS via Form 7 within 14 days) - (ii) The licence is revoked by MAS - (iii) The licence lapses per SFA section 95
Q4: Does a CMS licence holder need a separate FA licence under the FAA?¶
No. A CMS licence holder is an exempt Financial Adviser -- it is exempted from the FA licence requirement for any financial advisory activity, so long as that advisory activity is not its main business. However, an exempt FA must still comply with all relevant FAA provisions and is required to lodge with MAS: - (a) Form 26 -- Notice of commencement of business (not later than 14 days prior to commencing) - (b) Form 27 -- Notice of change of particulars (within 14 days of change) - (c) Form 28 -- Notice of cessation of business (within 14 days of cessation)
Q5: How to expand CMS licence scope to add regulated activities?¶
Apply to MAS using Form 5 pursuant to SF(LCB)R, submitted with the prescribed application fee. Upon approval, MAS issues a new e-licence reflecting additional regulated activities and licence conditions. The company must commence the new activities only after the new e-licence is issued. Retain the most current version of the e-licence.
Q6: Does a nominee company need a CMS licence for providing custodial services?¶
No, so long as: - The nominee company does not hold itself out as providing custodial services - Its business is providing nominee services - Holding of customer assets is solely incidental to the nominee services
This includes nominee companies set up by financial institutions to facilitate their custodial services for specified products held on trust.
Q7: Can a CMS licence holder for dealing in capital markets products operate discretionary accounts?¶
Operating discretionary accounts is considered fund management under the SFA (managing a portfolio of capital markets products or entering spot FX contracts for customer funds). A dealing-only CMS licence holder must apply to add fund management to its licence.
Conflict of interest rule: A representative appointed for dealing in capital markets products cannot also operate discretionary accounts on behalf of customers. Companies licensed for both dealing and fund management must use separate representatives for each activity.
Regnify Implementation Notes¶
- The CMS licence types and regulated activity categories directly map to the activity checkboxes in Forms 3A, 3B, and 3C.
- The exempt FA status (Q4) is relevant when validating whether a principal needs to file FAA forms in addition to SFA forms.
- The dealing vs. fund management conflict (Q7) should be flagged as a validation rule when the same representative attempts to register for both activity types.
- Form numbers referenced (Form 5, 7, 26, 27, 28) relate to corporate-level filings, not individual representative appointments.