The Monetary Authority of Singapore (MAS) on Wednesday announced changes to make it easier for startups and small and medium enterprises (SMEs) looking to raise funds via securities-based crowdfunding (SCF) platforms.
MAS said it will simplify checks for SCF platform operators to rely on the existing regulatory framework for small offers to raise funds, including from retail investors.
Under current rules, issuers raising less than $5 million within 12 months are not required to issue a prospectus. However, they have to document and disclose the key risks of SCF investments, and obtain investors’ acknowledgement that they have read and understood these risks.
In addition, MAS said it will reduce the financial requirements for SCF platform operators who want to raise funds through SCF only from accredited and institutional investors.
MAS will ease the financial requirements for these platform operators to be licensed as dealing intermediaries, as long as they do …