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Approved Clearing House (ACH) or Recognised Clearing House (RCH) Licence

Clearing houses are licensed by MAS as approved clearing houses (ACHs) or recognised clearing houses (RCHs) under the Securities and Futures Act 2001 .
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Who needs to apply?

A company will need an ACH or RCH licence if it wishes to operate a clearing facility as defined under Part 2 of the First Schedule to the SFA .

What are the admission criteria and applicable requirements?

When assessing an application for an ACH or RCH licence, MAS takes into account factors such as:
  • Risk management in accordance with international standards and best practises.
  • Track record, management expertise and financial soundness of the applicant.
  • Ability to meet the minimum financial requirements prescribed under the SFA.
  • Strength of internal controls and systems.
  • Business plans and projections.
  • Corporate governance, fitness and propriety.

What are the applicable financial requirements?

The minimum base capital requirement for an ACH is $10,000,000.

The minimum base capital requirement for an RCH is $5,000,000.

How do I apply for an ACH or RCH licence?

An ACH or RCH licence is granted only to a corporation. To apply for a licence, submit the Form 1 - Application for Approval or Recognition as a Clearing Facility.

How much is the application fee and how do I make payment?

A non-refundable application fee of $4,000 is required. Please refer to payment instructions contained within the application form. 

What is the processing time required?

It will take approximately 9 months to process and approve a RCH application where the applicant meets all relevant admission criteria, has a straightforward business model, and the submission is complete and clear. MAS will require a longer time for complex cases, or where the submission is assessed to be incomplete or inaccurate.

Ensure that your application is complete, accurate, and accompanied by the requisite supporting documents.

What is the annual fee to be paid by a holder of an ACH or RCH licence?

Please refer to the Second Schedule of the Securities and Futures (Clearing Facilities) Regulations 2013 .

What is the validity of the ACH or RCH licence?

An ACH or RCH licence does not need to be renewed.

The licence is valid until:

  • The holder applies for cancellation of the licence.
  • The licence is revoked by MAS pursuant to section 56 of the SFA.

What if an ACH or RCH licencee wants to conduct other regulated activities under the SFA?

The entity should:

  • inform its MAS liaison officer of its intention to conduct other regulated activities
  • assess if it will require additional licence(s), or be eligible for any exemptions, to conduct other regulated activities and submit the relevant application(s).