The Monetary Authority of Singapore (MAS) has released a consultation paper proposing a regulatory framework designed to expand retail investors’ access to private market investment funds.
This initiative addresses the growing interest from both retail investors and industry players in diversifying investment portfolios beyond traditional public markets.
Currently, retail investors in Singapore have limited access to private market investments such as private equity, private credit, and infrastructure.
The proposed Long-term Investment Fund (LIF) framework aims to bridge this gap by adapting existing requirements to better match the nature of private market investments and the specific needs of retail investors.
MAS is consulting on the appropriate regulatory requirements for two potential fund structures: Direct Funds, which offer greater visibility of the underlying private market assets, and Long-term Investment Fund-of-Funds (LIFF), which allows investors to leverage the fund manager’s expertise in selecting and monitoring a diversified portfolio of private market investment funds.
These options aim to cater to varying investor preferences and risk appetites.
In addition to the fund structures, the consultation paper seeks feedback on the appropriate regulatory safeguards for each structure and the scope of private market assets suitable for retail investors.
The proposed LIF framework aims to foster a robust and sustainable market for retail private market investment funds.
While distinct from the Equities Market Review Group’s measures, this proposal complements it by providing investors with a wider range of portfolio diversification options and creating a potential pathway for the listing of private market investment funds.
MAS invites feedback on the consultation paper, which can be submitted via this FormSG link by 26 May 2025.
Featured image credit: Edited from Freepik
