In Singapore, a Capital Market Service license ( CMS ) is required for entities that provide certain financial services. Obtaining a CMS license can bring many benefits to your business, such as offering a broader range of services and greater funding access. This article will explain what services require a CMS license in Singapore and the benefits of having one.
- What is a CMS License and its uses
A Capital Market Service (CMS) license is a type of business license that allows a company to provide financial services in Singapore. These services include investment banking, securities dealing, Futures trading, and fund management. A company must meet certain eligibility criteria set by the Monetary Authority of Singapore (MAS) to obtain a CMS license.
Once a company has been granted a CMS license, it will be subject to ongoing regulation by MAS. This includes requirements such as maintaining adequate capital levels, keeping accurate records, and putting in place risk management systems. Licensees must also disclose information about their business to potential investors.
The CMS license regime was introduced in 2004 in response to the globalization of the financial industry. MAS aims to promote stability and confidence in Singapore’s capital markets by establishing a regulatory framework for the financial services sector.
- Benefits of having a CMS License in Singapore
A Capital Market Service (CMS) license in Singapore is highly beneficial for businesses as it allows them to conduct fund-related activities, including acting as a fund manager, dealing in securities, providing corporate finance advice, and acting as a financial adviser. This license is essential for businesses that want to offer these services to clients in Singapore. Applying for a CMS license is straightforward, and the requirements are not overly demanding. Once a business has been granted a CMS license, it can operate without significant restrictions. This makes it an ideal option for companies that want to offer these services in Singapore.
