Name
Global FinTech Guide
Country _ Name
Singapore
SectionTitle
Asset and portfolio management
Body
FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.

Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.

Introduction

Attitude of the country towards modern asset and portfolio management services

Fund management is generally dominated by traditional asset management services, but FinTech startups such as Endowus, Stashaway and Syfe have are reportedly seeing increased revenues in the past few years of operation. Established market participants such as Phillip Securities, DBS and Singlife have also started offering digital management services that provide customers with data-driven and automated advisory tools. This signifies a shift towards greater acceptance of modern, technology-driven asset and portfolio management services.


Legal affairs

Obligations and requirements to provide asset and portfolio management, or ancillary services described above

Fund management is a regulated activity under the Securities and Futures Act 2001 (SFA), under which a company must be issued a Capital Markets Services (CMS) Licence to carry out fund management. Companies licensed to carry out fund management under a CMS Licence are one of three categories:

  • retail LFMC – providing services to all investor profiles;
  • A/I LFMC – providing services to qualified investors only; and
  • Venture Capital Fund Managers (VCFM) – providing services in respect of venture capital funds with qualified/ accredited investors only.

Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

Providers using FinTech to provide asset and portfolio management services are still subject to the licensing regime under the SFA, as described above.


Economic conditions

Market size for asset and portfolio management services and biggest companies in this business area

Pursuant to data published by MAS, there are SGD 5.4 trillion assets under management as of 2023 and the market is expected to grow significantly. Major asset management firms include Blackrock, UBS and JP Morgan Asset Management. Notable digital marketplaces such as Alta have emerged in Singapore recent years.

Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

N/A

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