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.
