MSWG Weekly Newsletter 12 May 2017
12 May 2017
VOICE OF MSWG
NEW LICENCE FOR DIGITAL INVESTMENT MANAGEMENT SERVICES
With effect from 9 May 2017, fund management companies offering automated discretionary portfolio management services will have to apply from the Securities Commission (SC) for a licence to operate. A new digital framework introduced by the SC sets out the licensing requirements and rules of conduct. Among the requirements are requisite technology capabilities, risk management and cyber security resilience and appropriate management strategy & policies.
It is hoped that this will result in increasing the cost-efficiency of the fund-management and thus benefiting investors. With lower cost complemented by “risk-aversion”, private unit trusts may be a viable alternative.