On 2 February 2023, the Financial Services Commission (FSC) released a communique to inform the public and relevant stakeholders of new application procedures with regard to Collective Investment Scheme (CIS) and Closed-End Fund (CEF) [hereinafter collectively referred to as “Funds"].

The new processes will aim to increase the efficiency of the application process for Funds and are applicable with immediate effect. The FSC is further looking to implement these procedures for other types of licences in the future.

Going forward, Management Companies (MCs)/applicants will need to provide confirmations and undertakings – via the FSC One Platform – in the approved form together with:

• A signed declaration by two resident directors of the MCs/applicants; and

• A legal certificate confirming that the constitutive documents and the offer document accompanying the application are in compliance with the Securities Act, the Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008, other relevant Acts, any guidelines issued by the FSC and any other applicable Laws.

The FSC further notifies MCs/applicants that penalties against them and the two resident directors are applicable in the event of the false declaration by the latter.

Incomplete applications which are deficient will not be entertained by the FSC unless the shortcomings have been addressed within 15 days.

Furthermore, within 6 months of the issuance of authorisation, the FSC will conduct an on-site inspection.

Access the full communique from the FSC here for more information.