Stricter Rules Aim to Strengthen Compliance but Could Push Smaller Firms Out

A new Bill passed in Singapore on July 2 introduces stricter regulations for corporate service providers, which could significantly impact the industry. The regulations are designed to curb money laundering activities and increase compliance standards. The new rules require entities offering corporate secretarial services to register with the Accounting and Corporate Regulatory Authority (Acra) as officially registered service providers.

Industry experts believe these changes will raise the bar for the sector, leading to enhanced checks and robust compliance systems. However, the tougher requirements could pose challenges for smaller providers, potentially pricing them out of the market. As the cost of meeting compliance standards rises, consolidation within the industry could occur, with larger firms better equipped to absorb the added costs.

These changes are aimed at creating a “level playing field” among corporate service providers, but the long-term effects could reshape the landscape, making it harder for smaller businesses to compete.