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5. Clear-cut EAM advantage

One area where there is clear-cut advantage for Singapore is in the external asset manager (EAM) segment. Unlike Hong Kong-based EAMs which are required to apply for licensing based on specific activities conducted (e.g. brokerage, advisory, asset management), Singapore’s fund management regime encompasses all traditional EAM activities and is cognizant of the the fact that while they do not hold or control client assets, they cannot be effectively regulated like conventional financial advisers.

Singapore is also more understanding when it comes to retrocessions paid to EAMs, with deep considerations for both potential impact on clients and the sustainability of the segment.

Does this mean MAS is resourced with greater talent and knowledge? Possibly but one of the most cited reasons for its success is the regulator's willingness to engage and collaborate with practitioners to create a balanced and effective environment for business.