MAS issues updated Guidelines on Liquidity Risk Management Practices (Fund Management Companies)

30 July 2026

On 2 July 2026, the Monetary Authority of Singapore (“MAS”) published an updated version of the Guidelines on Liquidity Risk Management Practices (Fund Management Companies) (“Guidelines”).

The revised Guidelines clarify MAS’ expectations on certain aspects of the previous version of the Guidelines, including:

• the removal of exchange-traded funds from the scope of the Guidelines;
• alignment between redemption terms and liquidity of fund assets;
• the adoption of anti-dilution liquidity management tools;
• the incorporation of explicit and implicit costs, including market impact of asset sales into redemption costs;
• strengthening governance and enhancing disclosures on the design and use of liquidity management tools; and
• a holistic assessment of liquidity risks.

In addition, MAS updated the Code on Collective Investment Schemes (“CIS Code”) to strengthen portfolio liquidity in money market funds by introducing expectations on eligible deposits that are placed with financial institutions.

Fund management companies are to comply with the updated Guidelines and CIS Code no later than 2 January 2027.

Background

MAS published a consultation paper on 17 December 2025 to seek feedback on proposed updates to the Guidelines. In its response to feedback published on 2 July 2026, MAS said that it carefully considered the feedback received and incorporated it where it agreed with the feedback.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

• Guidelines on Liquidity Risk Management Practices (Fund Management Companies) [SFA 04-G08]
• Code on Collective Investment Schemes
• Response to Feedback Received on Updates to the Guidelines on Liquidity Risk Management Practices (Fund Management Companies)