Singapore’s Monetary Authority said on Thursday it is seeking feedback on a proposed regulatory framework for retail investors to invest in private market investment funds.
The move shows signs of growing interest among retail investors in such funds, as well as among industry players providing them, the central bank said in a statement.
Within the current funding regulatory framework, retail investors in Singapore have limited opportunities to gain private market investment.
Private market investments include private equity, private credit and infrastructure, which usually have less liquidity than public market investments, such as stocks, which means retail investors can easily access funds.
MAS said it has proposed a long-term investment fund or LIF framework for private market investment funds to adapt to existing funding requirements to suit the characteristics of private market investment funds and the needs of investing retail investors.
The two possible fund structures proposed are direct funds, which make direct private market investments, as well as long-term investment funds that are primarily invested in other private market investment funds, MAS said.
It said the proposal complements the Singapore Stock Market Review Group’s measures to revitalize the country’s stock market.
“It will provide investors with a variety of options to build a diverse portfolio while laying out avenues for potential private market investment funds,” MAS said.
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