The Monetary Authority of Singapore (MAS) has launched a public consultation on a proposed regulatory framework to expand retail investors’ access to private market investment funds, the central bank said.
Under the current regulations, retail investors in Singapore have limited opportunities to invest in private market assets such as private equity, private credit, and infrastructure.
The MAS said it has observed growing interest from retail investors and industry players seeking to offer such products.
To meet this demand, the MAS has proposed the Long-term Investment Fund (LIF) framework, designed to provide retail investors with a broader range of investment options.
The framework is tailored to suit the characteristics of private market funds while addressing the needs of individual investors.
The proposed LIF framework features two potential fund structures. The first is a Direct Fund structure, which directly invests in private market assets, offering investors greater transparency regarding the underlying investments.
The second option is a Long-term Investment Fund-of-Funds (LIFF) structure, which primarily invests in other private market funds.
This allows investors to leverage the expertise of LIFF managers in curating and managing diversified portfolios.
MAS is seeking feedback on the appropriate regulatory requirements for each structure, recognizing the distinct safeguards that may be necessary.
Additionally, the consultation paper invites views on the types of private market investment assets suitable for retail investors.
The proposal is part of the central bank’s broader efforts to enhance investment opportunities for retail investors.
While it is not directly linked to the Equities Market Review Group’s measures, the MAS said the framework could complement those initiatives by offering diversified investment options and potentially paving the way for the listing of private market funds.
The consultation paper is available on the MAS website, with the central bank welcoming comments from stakeholders until May 26, 2025.
