MAS seeks feedback on allowing retail investors access to private market assets

[SINGAPORE] Retail investors in Singapore may soon be able to channel funds into private market assets, which have largely been the domain of richer individuals and the likes of pension and endowment funds.

Rising interest in the asset class is leading the Monetary Authority of Singapore (MAS) to ask for feedback on a regulatory framework that would give retail investors access private markets. This will be through authorised long-term investment funds (LIF).

“Recently, MAS has observed growing interest from retail investors for such investments, and interest from experienced industry players to offer private market investment fund products to retail investors,” it said in a statement on Thursday (Mar 27).

It has also issued a consultation paper proposing an LIF framework for private market investment funds; this is adapted from existing fund requirements to suit the asset’s characteristics and the needs of retail investors when investing in these funds.

The central bank has identified two potential fund structures – the first is the direct fund, which makes direct private market investments. This gives greater visibility of the underlying assets.