Singapore’s central bank will strengthen liquidity risk management rules and overhaul its data collection regime for fund managers, as it seeks to bolster resilience in the country’s asset management sector amid heightened global economic uncertainty.
In a keynote speech at the Investment Management Association of Singapore’s (IMAS) 11th Regulatory Forum on Wednesday, Teo Kok Ming, executive director for investment intermediaries at the Monetary Authority of Singapore (MAS), said the industry had remained stable during recent market volatility but warned of continued macro risks, including geopolitical tensions, trade disruptions and cyber threats.
MAS plans to revise its 2018 liquidity risk management guidelines to align with updated international standards issued by the Financial Stability Board and the International Organization of Securities Commissions.
The updated rules will focus on matching fund redemption terms with underlying asset liquidity, expanding access to liquidity management tools such as swing pricing and anti-dilution levies, and improving governance practices related to the use of such tools. MAS will consult on the proposed changes later this year.
Teo said the changes were aimed at reinforcing fund managers’ preparedness for market stress and protecting investor interests.
He added that robust governance was essential, particularly for Variable Capital Companies (VCCs), a corporate structure launched in 2020 to boost Singapore’s competitiveness as a global asset management hub.
Findings from MAS’ recent thematic review revealed that some VCCs lacked appropriate custody arrangements for listed securities and showed weaknesses in anti-money laundering and counter-terrorism financing controls.
Teo reminded fund directors that they retain ultimate responsibility for compliance, oversight and due diligence, regardless of any delegation to eligible financial institutions.
In a bid to improve surveillance and risk detection, MAS will also replace its annual Fund Management Risk Assessment Questionnaire with a streamlined quarterly survey covering all fund strategies.
The new data collection framework, to be phased in from the second half of 2025, will offer standardised formats and reduced reporting burdens for smaller managers.
MAS will continue to gather daily data for authorised schemes, while avoiding duplication across regulatory filings.
Teo also warned of rising cybersecurity risks and impersonation scams targeting fund managers.
He cited cases where scammers created fraudulent websites mimicking legitimate fund companies, tricking investors into transferring money.
MAS urged firms to conduct regular online scans, issue public advisories if impersonated, and report such cases to the authorities. Entities found to be impersonating fund managers may be listed on the MAS Investor Alert List.
Despite growing threats, Teo said Singapore’s asset management industry had demonstrated resilience in recent months.
He called for continued collaboration between regulators and industry stakeholders to maintain the city-state’s position as a trusted and competitive fund management hub.