MAS to study securities-based crowdfunding

The Monetary Authority of Singapore (MAS) on Monday published a consultation paper aimed at allowing companies to access alternative sources of funding through securities-based crowdfunding (SCF). -- PHOTO: ST FILE
The Monetary Authority of Singapore (MAS) on Monday published a consultation paper aimed at allowing companies to access alternative sources of funding through securities-based crowdfunding (SCF). -- PHOTO: ST FILE

SINGAPORE - The Monetary Authority of Singapore (MAS) on Monday published a consultation paper aimed at allowing companies to access alternative sources of funding through securities-based crowdfunding (SCF).

As a start, MAS will propose to facilitate SCF offers to accredited investors (AIs) and institutional investors (IIs) by easing the current financial requirements for intermediaries that deal in securities.

This is as long as they do not handle or hold customer monies, assets or positions and do not act as principal in transactions with customers.

The MAS said that this will allow potential SCF platform operators with lower financial resources to apply for a licence to offer SCF investments.

MAS will also clarify that the the advertising restriction for restricted offers made to AIs does not prohibit SCF platform operators from advertising their platforms, so long as reference is not made to any specific SCF offer listed on their platforms.

This clarification will provide certainty to potential SCF platform operators on the manner in which they can publicise their business, said MAS.

"These proposals seek to strike a balance between facilitating investments in start-ups and small businesses and ensuring that there are sufficient safeguards for investors," said Mr Lee Boon Ngiap, assistant managing director of capital markets at MAS.

"We look forward to feedback from investors and market participants on the proposals to promote a conducive and sustainable environment for securities-based crowdfunding in Singapore."

Interested parties can submit their comments to crowdfunding_consultation_2015@mas.gov.sg by March 18.