Hedge fund managers are regulated like any other fund manager that manages third-party funds in 6 Singapore. Small or boutique fund managers, that manage funds for accredited investors , are subject to less stringent licensing requirements because investor protection concerns are less acute. Smaller 7 firms, with fewer than 30 qualified investors , are exempted from licensing. Hedge fund managers should find such operating structures conducive, as they are typically small outfits managing funds for a limited number of institutions and high net worth individuals. MAS applies the same risk-focused and differentiated approach to the marketing of hedge funds. MAS does not regulate offers of collective investment schemes and hedge funds to professional and institutional investors in the financial sector as these investors are adequately skilled to evaluate for themselves the investment characteristics of hedge funds. Similarly, financial institutions can offer hedge funds to sophisticated investors on the strength of an offering memo. MAS’ regulatory oversight of the marketing of hedge funds is focused on retail investors. Retail investors may not be familiar with the differences between a hedge fund and a typical collective investment scheme. In particular, key aspects such as legal structure, investment objectives, trading strategies and fees may not be fully appreciated. Unlike unit trusts where a growth fund usually invests in stocks and an income fund in bonds, there is no simple correlation between investment style and asset exposure for hedge funds.

Attention therefore was given for banking institutions to accord a special focus on providing financial services to SMEs, in particular in strengthening their facilities, outreach and services to SMEs. Today, all commercial banks have dedicated SME divisions and Bumiputera Development Units that are responsible for providing lending as well as ancillary support and advisory services to the SMEs. The commercial banks also have a specific client charter for SMEs, providing the necessary information to facilitate SMEs in applying for financing. The strategy to provide increased access to financing is also reinforced by the provision of information and financial advisory services to SMEs. In 2005, Bank Negara Malaysia established Laman Informasi, Nasihat dan Khidmat (or the LINK), as a one-stop centre for SMEs to obtain information and raise matters on access to financing directly with Bank Negara Malaysia. The LINK has dedicated staff that provides financial advisory services including for dealing with problems of obtaining financing and for restructuring of existing loans. To date, about 11,000 SMEs have sought assistance from the LINK. Another important initiative in disseminating information to the SMEs is the establishment of the SMEinfo Portal, an information gateway for SMEs. The Portal provides comprehensive information required by SMEs, including details on the Government's financial and non-financial assistance, financing products for SMEs by the financial sector, training programmes as well as advise on how to start and manage a business. The Portal also provides a platform for SMEs to advertise their products  BIS Review 13/2007  1  and services.