ASEAN KEY DESTINATIONS
MAS to Improve Access to Crowd-funding for Start-ups and SMEs
Singapore, 8 June 2016... The Monetary Authority of Singapore (MAS) announced today that
it will make it easier for start-ups and Small and Medium Enterprises (SMEs) to access
securities-based crowd-funding (SCF) in two ways.
2 First, MAS will make it easier for SCF platform operators to rely on the existing
regulatory framework for small offers, to raise funds through SCF including from retail
investors. For such platform operators, MAS will simplify the pre-qualifications that
currently allow issuers raising less than $5 million within 12 months to do so without having
to issue a prospectus.1
operators to document and disclose the key risks of SCF investments and obtain investors’
acknowledgement that they have read and understood these risks.
3 Second, MAS will reduce the financial requirements for SCF platform operators who
want to raise funds through SCF only from accredited and institutional investors. MAS will
ease the financial requirements for these platform operators to be licensed as dealing
intermediaries, as long as they do not handle or hold customer monies, assets or positions,
and do not act as principal against their customers. Both the base capital requirement and
minimum operational risk requirement for such intermediaries will be reduced from
$250,000 to $50,000. The requirement for a $100,000 security deposit will also be
removed. This will allow more qualifying SCF platform operators to operate in this
restricted space and takes into account the limited systemic and business conduct risks
posed by such intermediaries.
4 MAS will publish new guidelines on SCF-related advertising and Frequently Asked
Questions (FAQs) on lending-based crowdfunding. The new guidelines will clarify that the
advertising restrictions in the Securities and Futures Act (Cap. 289)2
platform operators from publicising their services and provide guidance on the manner in
which such advertisements can be made. The FAQs will help market participants, including
SCF platform operators, better understand the regulatory framework underpinning lending-
5 Mr Lee Boon Ngiap, Assistant Managing Director, Capital Markets, MAS said,
“Securities-based crowdfunding is a useful addition to our financing landscape. At the same
As a safeguard for investors, MAS will require these SCF platform
do not prohibit SCF
Monetary Authority of Singapore
10 Shenton Way MAS Building Singapore 079117 Telephone : (65) 6225-5577
time, SCF investments can be quite risky. The measures we are implementing seek to strike
the right balance between improving access to SCF for start-ups and SMEs and protecting
investor interests. The public consultation exercise has been very useful in helping us arrive
at this balanced approach.”
6 MAS’ response to the public consultation can be found here.
8 The public consultation will be open from 6 June 2016 to 8 July 2016. A copy of the public consultation paper is available on the MAS website
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