The Securities and Futures Act 2001 governs capital markets activity in Singapore, and the costs of compliance range from a S$1,000 capital markets services (CMS) licence application fee to base capital requirements that can reach S$1,000,000 for certain regulated activities. This guide breaks down the fees, thresholds and timelines that firms actually face.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What the Securities and Futures Act covers
The Securities and Futures Act is the main statute regulating securities, derivatives, fund management and market operators in Singapore. It is administered by the Monetary Authority of Singapore (MAS). Anyone carrying on a regulated activity, such as dealing in capital markets products or fund management, generally needs a capital markets services licence unless an exemption applies. Section 82 of the Securities and Futures Act 2001 establishes the prohibition on carrying on a regulated activity without a licence, which is why licensing sits at the centre of the cost picture. The statute is published on Singapore Statutes Online and licensing guidance sits with MAS.
Who needs to comply
Fund managers, brokers, corporate finance advisers, custodians and market operators all fall within the Act. Family offices are frequently structured to rely on exemptions rather than hold a full licence, which changes the cost profile substantially. Company directors overseeing a regulated subsidiary should understand how these obligations interact with general corporate governance, as covered in our note on the director’s duty to act in good faith.
Cost and fee breakdown (2026)
The application fee for a capital markets services licence is S$1,000 per regulated activity, with an annual fee of S$4,000 per regulated activity for most holders. Base capital requirements vary by activity: fund management for accredited or institutional investors commonly requires S$250,000 base capital, while retail fund management can require S$1,000,000. Representatives must be appointed and, where applicable, notified to MAS. Legal and compliance set-up for a licensed entity typically costs S$20,000 to S$60,000, and ongoing compliance support runs S$2,000 to S$10,000 a month depending on scale.
Timelines
MAS review of a complete CMS licence application generally takes four to six months, and longer where the applicant’s shareholding or business model raises questions. Firms should budget for a pre-application period of two to three months to prepare the business plan, compliance manual and fit-and-proper documentation. Registered fund management company and exemption routes have shorter lead times but their own conditions.
Step-by-step: obtaining a CMS licence
First, confirm the regulated activities and whether an exemption is available. Second, incorporate or restructure the operating entity and inject the required base capital. Third, appoint fit-and-proper directors, a CEO and representatives. Fourth, prepare the compliance framework, including risk management and anti-money-laundering policies. Fifth, submit the application through the MAS portal with the S$1,000 fee. Sixth, respond to MAS queries until approval.
Common mistakes and gotchas
Firms frequently underestimate base capital and risk-based capital requirements, misclassify their regulated activities, or assume an exemption applies when it does not. Hiring plans also matter early, because appointing representatives and senior staff can trigger employment and immigration steps; see the Workplace Fairness Act employer obligations for the hiring-side context.
Related guides
Startups raising capital should read our explainer on convertible notes and SAFEs in Singapore, which addresses instrument choices that can intersect with securities regulation.
Documents and information you will need
A licence application requires a detailed business plan, group structure chart, financial projections, evidence of base capital, fit-and-proper declarations for directors and key officers, a compliance manual, and anti-money-laundering and countering-the-financing-of-terrorism policies. Representatives’ qualifications and examination records must be documented. MAS also expects clarity on outsourcing arrangements and technology risk management. Assembling these before submission shortens the review and controls advisory cost.
Consequences of getting it wrong
Carrying on a regulated activity without the required licence is a serious offence attracting fines and potential imprisonment, and MAS can impose prohibition orders on individuals. Deficient compliance frameworks can lead to enforcement action, reputational damage and loss of licence. Because MAS supervises on a continuing basis, ongoing compliance spending is not optional; it is the cost of retaining authorisation.
How we can help
Raffles Corporate Services handles the full lifecycle described above: gathering the documents, meeting the deadlines, and coordinating with the relevant authority so nothing falls through the cracks. We work with a panel of corporate and employment law firms where formal legal advice is needed, and we keep fees transparent and fixed where possible so you can budget with confidence. Engaging early, before deadlines loom, is consistently the cheapest path.
FAQs
How much does a CMS licence cost? The application fee is S$1,000 per regulated activity and the annual fee is S$4,000 per activity, on top of base capital and professional set-up costs.
How long does MAS take to approve a licence? A complete application usually takes four to six months, sometimes longer.
Can a family office avoid licensing? Many single-family offices are structured to rely on statutory exemptions rather than hold a licence, subject to conditions.
What base capital is required for fund management? Commonly S$250,000 for accredited or institutional fund management and up to S$1,000,000 for retail fund management.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.