Controls and Disclosures to be Implemented by Licensed Securities-Based Crowdfunding Operators

In June 2016, the Monetary Authority of Singapore (MAS) streamlined the rules applicable to capital markets services licensees offering securities-based crowdfunding (SCF), to make it easier for start-ups and small and medium enterprises to access SCF. The rule changes were calibrated to strike the right balance between improving access to capital for businesses and protecting investor interests.

MAS has surveyed and engaged licensed SCF operators over the past year to develop further insights on their business operations. MAS’ review shows that there is scope for SCF operators to enhance their practices and controls in relation to due diligence conducted on issuers, management of defaults, and disclosures to investors. MAS sets out the measures that licensed SCF operators should have in place in these areas. These measures also serve to enhance transparency to investors to help them make better informed investment decisions on SCF offers.

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