The Monetary Authority of Singapore ( MAS ) made a recommendation for a regulatory framework for retail investors to make investments in private market investment funds on Thursday ( Mar 27 ).  ,
The regulator said the move would give retail owners more options for making purchases, noting that they are becoming more and more interested in such investments.  ,
Experienced market players are also interested in supplying retail investors with products from personal business investment funds, according to MAS in a media release.  ,
A personal business expense fund is a fund that invests in either personal or non-publicly traded assets. Retail traders in Singapore have “limited access” to secret market investments like private capital, private funds, and infrastructure, according to MAS.  ,
According to MAS in the press release, the proposal will provide investors with a wider range of options for building well-diversified portfolio while opening the door for the potential list of personal market investment money.  ,
Two different finance types are being considered in the plan.
The first is a strong fund, which invests directly in the private sector. According to MAS, this gives the underlying assets greater awareness.
A long-term purchase fund-of-funds structure, which generally invests in other secret market investment funds, is the next option.  ,
Investors who want to evaluate and monitor a diverse portfolio of secret market investment funds may benefit from this.  ,
MAS is looking for opinions on the proposed regulation model, especially considering that the two constructions may require different regulatory protections.  ,
In the media release, it stated that “MAS is also seeking views on the range of personal business purchase assets that can be appropriately offered to retail investors.”  ,
By May 26th, submit opinions via the FormSG website.  ,