SINGAPORE Law and Practice Contributed by: Doos Choi, Pierre Dzakpasu, Janelene Chen and Pieter de Ridder, Mayer Brown
ume lies in the mid market, where a bi-lateral loan by a single private credit fund (or a small club) is most common. That said, given the right opportunity, large cheques can be written and, although there are a handful of funds that may have the firepower to take on these larger situ - ations by themselves, they will typically be syn - dicated across a number of investors. A correlation can be drawn between deal sizes and the size of the relevant economy where the investment opportunity resides. The Peo - ple’s Republic of China represents the biggest regional economy, so it is no surprise that (until its recent economic malaise), the biggest deals were being transacted there. The other regional economies are smaller by comparison, so it less common to come across similarly sized invest - ments in issuers based in those other econo - mies. The regional fundraising environment has remained challenging, with macro-economic headwinds and the prevailing geopolitical envi - ronment. Generally speaking, there has been a flight towards the larger fund managers operat - ing global strategies. 1.9 Impending Regulation and Reform See 2.2 Regulators of Private Credit Funds . 2. Regulatory Environment 2.1 Licensing and Regulatory Approval Lending in Singapore The main pieces of legislation in Singapore which regulate the activities of banks, money brokers and money lenders are as follows: • the Banking Act 1970; • the Securities and Futures 2001 (SFA);
• the Moneylenders Act 2008 (MLA); and • the Payment Services Act 2019. The extent to which a private credit lender must be licensed will depend on the types of activities in which it wishes to engage and the extent to which it can rely on exemptions specified within the relevant ordinances. While not specific to private credit funds, reg - istration requirements under the following ordi - nances may also be relevant: • the Business Registration Act 1974; and • the Companies Act 1967 (CA). There is no general requirement for a lender to obtain a licence or regulatory approval solely by reason of taking the benefit of security over assets located in Singapore. 2.2 Regulators of Private Credit Funds The Monetary Authority of Singapore (MAS) is the main regulatory body overseeing banking activities and the securities and futures markets in Singapore and regulating institutions involved in credit markets, particularly from the perspec - tive of managing financial stability and ensuring prudent lending practices. While there is currently no specific regulatory body or legislation targeted at private credit funds in Singapore, whether the activities of a private credit fund falls within the purview of the MAS will depend on the types of investment activities in which it engages. The MAS partners with private credit managers with a strong track record and that are keen to anchor their regional headquarters in Singapore through a private market programme for man - agement of USD5 billion of funds.
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