On 27 March 2025, the Monetary Authority of Singapore (MAS) issued a consultation paper on a proposed regulatory framework to allow retail investors to access private market investments through authorised long-term investment funds (LIFs).
The main objective of the proposed LIF framework is to offer retail investors access to private market investments in a way that manages risk, contributing to a diversified investment portfolio. This MAS proposal follows similar initiatives in other jurisdictions, such as the UK and Europe, which have expanded the distribution of LIFs to retail investors.
Under the LIF framework, the MAS has identified two possible structures for a LIF:
(a) Direct Fund
A Direct Fund would offer investors with enhanced transparency regarding the fund's underlying private market investment assets. Additionally, investors would have the opportunity to evaluate and select the private market investment manager they prefer to invest with.
(b) Long-Term Investment Fund-of-Funds (LIFF)
A LIFF structure would be advantageous for investors who want to leverage the LIFF manager's expertise in selecting and overseeing the fund's underlying private market investment funds. Additionally, a LIFF would offer diversification by investing in different underlying fund managers or different investment strategies, sectors, or geographic areas.
The MAS expects the two structures to have distinct regulatory safeguards. The public consultation, which is open until 26 May 2025, seeks comments and views on the regulatory requirements for each structure.
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