Singapore’s finance minister has said the government intends to change the rules for open-ended investment companies (OEICs) to encourage funds to list on the local stock exchange, according to a report by the Straits Times.
Speaking at the Investment Management Association of Singapore (IMAS) annual conference on Wednesday, Senior Minister of State for Finance and Law Indranee Rajah was quoted as saying:
“The Monetary Authority of Singapore and ACRA (Accounting and Corporate Regulatory Authority) are studying the introduction of an OEIC framework for investment funds that will facilitate local domicile of funds while continuing to ensure strong protection for investors.”
OEICs are investment funds that investors can access via exchange-listed shares. As they are open ended, there is no limit to the number of new shares the investment company can issue.
The Straits Times reported that the government hopes to make the changes within a year.
IMAS responded positively to the announcement, with chairman Nicholas Hadow reportedly saying: “OEIC’s are flexible alternatives to the unit trust structure already well established in the UK and available in other financial centres such as Luxembourg and Dublin.
“The introduction of an OEIC framework will enable asset managers to domicile their investment vehicles in Singapore, encourage the development of the asset servicing eco-system here and further cement our position as a globally competitive asset management hub.”