Compliance Corner: South Korea, FSC, Singapore

Editorial Staff

22 May 2020

South Korea
South Korea has taken further steps to get ready for a funds passporting regime in Asia, designed to boost the region’s investment management sector and economic growth.

The ARFP, signed by New Zealand, Australia, Japan, Thailand and South Korea in 2016, facilitates the offering of liquid and well diversified managed funds among the signatory economies.

The North Asian country’s Financial Services Commission said that its government has given the green light to the the revisions enforcement decree of the Financial Investment Services and Capital Markets Act, to get ready for the ARFP, which kicks in from 27 May this year.

In some ways, the progamme mirrors the pan-European investment funds structure known as UCITS, under which funds can be bought and sold throughout the European Union without having to be separately registered in each of the 27 member states. There have been moves to create a similar kind of system in Asia with its fast-growing investment sector.

Publicly offered local funds with at least $500 million in assets under management and $1 million or more in capital, and at least two board members with five years or more of management experience in the financial sector can apply to be registered as passport funds.

Registered passport funds will be operated through securities and short-term financial instruments, sales of derivatives and securities lending agreements, the FMC said in a statement yesterday.

Singapore
Financial institutions in Singapore can reopen more customer service locations from 2 June as the Asian jurisdiction moves to ease lockdowns imposed because of COVID-19.

The Monetary Authority of Singapore said that it will allow firms to have more onsite staff to meet increased customer needs as some businesses re-open, as well as serving customers using online and offline channels more efficiently.

Most staff will, however, continue to work from home as telecommuting remains the default for jobs that can be managed from home, the MAS said in a statement.

Businesses in the financial sector will have to put strict safe management measures in place, including staggered start times and flexible work hours, to ensure that safe distancing can be maintained at work premises and in the public transport system, MAS said.

“Customer service locations of insurance companies, fund managers, and brokers will re-open to process essential customer transactions, such as facilitating account opening, updating account information, dealing with insurance policy enquiries, and processing claims and applications for relief measures. Money changing services will also resume,” the statement said.

“FIs providing financial advice on banking, insurance and investment products, and private banks offering wealth management advice, will be permitted to have in-person meetings with their customers at their business premises only with MAS approval and subject to additional safe management measures,” it said.

The regulator urged people to continue using digital services as much as possible.