Regulatory Alerts2021-06-29
Added
MAS Notice 1018 on Private Equity and Venture Capital Investments for Merchant Banks
The Monetary Authority of Singapore issued this notice to regulate private equity and venture capital investments held by merchant banks, defining the scope of such investments and establishing strict holding periods of up to seven or twelve years depending on management involvement. The regulation mandates robust risk management frameworks, independent valuation practices, and specific qualifications for personnel, while prohibiting merchant banks from participating in the day-to-day management of investees except under extenuating circumstances. Additionally, the notice imposes comprehensive record-keeping and reporting obligations, requiring banks to submit detailed schedules of their investments and any holdings exceeding permitted durations to the Authority.