Offers of Collective Investment Schemes
What is a Collective Investment Scheme
A collective investment scheme is an arrangement in respect of any property which satisfies the following elements:
- Participants have no day-to-day control over management of the property
- Either or both characteristics are present:
- Property is managed as a whole by or on behalf of the manager
- Participants’ contributions are pooled, and profits/income from which payments are to be made are pooled
- (Purported) purpose or effect of the arrangement is to enable participants to participate in or receive profits/income arising from the property
Requirements for Offers of Collective Investment Schemes
Offers of units in a collective investment scheme (“CIS”) to investors in Singapore are regulated under Division 2 of Part XIII of the SFA . Unless exempted, an offer of units in a CIS must comply with the following requirements:
- The CIS must be authorised (if it is constituted in Singapore) or recognised (if it is constituted outside Singapore) by MAS
- The offer of units in a CIS must be made in or accompanied by a MAS-registered prospectus and product highlights sheet
(A) Authorisation
You may apply for authorisation of a CIS using Form 1 on OPERA.
MAS may authorise a CIS, if:
- The manager holds a capital markets services licence
- There is a trustee approved under section 289 of the SFA
(B) Recognition
You may apply for recognition of a CIS using Form 2 on OPERA.
MAS may recognise a CIS, if:
- The laws and practices of the CIS jurisdiction afford to investors in Singapore, protection equivalent to that provided by authorised schemes
- The manager is licensed or regulated in its principal place of business
- There is an appointed Singapore representative
Exempted Offers
Authorisation / recognition of a CIS and prospectus registration requirements do not apply to certain offers of units in a CIS (“exempted offers”). These offers include:
- Small Offers – Total amount raised is S$5 million or less in 12 months
- Private Placement – Offers made to no more than 50 persons in 12 months
- Offers targeted at accredited or institutional investors
Restricted Schemes
Restricted schemes are schemes that are offered only to “relevant persons” as defined in section 305(5) SFA, or at a minimum of S$200,000 per transaction. Restricted schemes are exempted from scheme authorisation or recognition and prospectus requirements, subject to certain conditions being met.
In particular, restricted schemes must submit a notification to MAS through the CISNet portal and be entered into MAS’ list of restricted schemes, before an offer is made. MAS will enter a CIS into the list of restricted schemes, if –
- The offer is made in or accompanied by an information memorandum that contains salient information about the restricted scheme; and
- The manager is licensed or regulated to manage the scheme property in the jurisdiction of its principal place of business and is fit and proper
Restricted Non-CMP Schemes that have a licensed manager and that wish to be entered into MAS’ list of restricted schemes may do so by submitting the online notification required for other restricted schemes.
As a condition for ongoing exemption, all restricted schemes must lodge an annual declaration every 12 months. More information on restricted schemes can be found in section 305 of the SFA and the Sixth Schedule to the Securities and Futures (Offers of Investments)(Collective Investment Schemes) Regulations .
Key Resources
For details of the relevant requirements and available exemptions, you may refer to:
- Division 2 of Part XIII of the SFA
- Securities and Futures (Offers of Investments)(Collective Investment Schemes) Regulations
- CIS Code
- CIS Practitioner's Guide
- FAQs on Offers of Shares, Debentures and CIS
Please refer to Regulations and Guidelines for a full list of the relevant regulations and guidelines relating to offers of units in a collective investment scheme.
Collective Investment Scheme Listings
The current lists of authorised, recognised and restricted schemes as well as approved trustees of CIS can be found at these links:
- Retail schemes under the SFA
- Retail schemes approved as Qualifying CIS under the ASEAN CIS Framework
- Property funds authorised under the SFA
- Restricted schemes notified under the SFA
- CIS trustees approved under the SFA