On March 27, 2025, the Monetary Authority of Singapore (MAS) announced a proposal to allow retail investors to participate in private market investment funds, a move aimed at expanding investment opportunities for the general public. This initiative responds to growing interest from both retail investors and industry players in accessing private market assets, such as private equity, private credit, and infrastructure, which have traditionally been available only to institutional and accredited investors due to their illiquid nature and higher risk profile.
To address these challenges, MAS introduced the concept of a long-term investment fund (LIF) framework specifically designed for retail investors. The framework proposes two main fund structures: direct funds that invest directly in private market assets, and long-term investment fund-of-funds (LIFFs) that primarily allocate resources to other private market investment funds. The direct fund structure offers investors greater transparency over the underlying assets, while the LIFF structure allows retail investors to benefit from the expertise of professional fund managers in selecting and monitoring a diversified portfolio of private market funds.
The proposed framework aims to adapt existing fund regulations to the unique characteristics of private market investments, ensuring an appropriate balance between investor protection, risk management, and access. MAS is seeking industry and public feedback on the regulatory requirements for these fund structures, including manager qualifications, product safeguards, and disclosure standards. The consultation period is open until May 26, 2025.
If implemented, these rules would provide retail investors in Singapore with a broader range of investment options, supporting greater portfolio diversification and potentially paving the way for the listing of private market funds. The proposal also complements ongoing efforts to revitalize Singapore’s equities market and strengthen its position as a leading investment hub in the region.
(Source: Reuters)
