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Singapore Lets Hedge Funds Live A Little
The Singapore Exchange has decided to allow hedge funds to list – but not trade – beginning June 29.
The Singapore Exchange has decided to allow hedge funds to list but not trade beginning June 29. The idea is to make HFs more visible to institutional and accredited investors, but the only way to acquire them will be through the over-the-counter market. As such, the SGX is feeling generous, imposing on hedge funds listing rules and obligations that will be less onerous, compared to those for conventional funds, according to a statement from the exchange. Among key features of the new regulations: Hedge funds must have a minimum asset size of S$20 million (US$12.5 million) or US$20 million for Singapore and foreign currency denominated funds, respectively; an independent risk management function; at least one principal with a minimum of five years relevant investment management experience; announce its net asset value per unit, as soon as practicable after each month end, but no later than seven business days; and announce any material change in relations to operations such as change in investment manager, custodian, administrator or independent auditor.