Singapore - MAS and ACRA launch Variable Capital Companies Framework
Yesterday the Monetary Authority of Singapore ("MAS"), together with the Accounting and Corporate Regulatory Authority ("ACRA") launched the Variable Capital Companies ("VCC") framework in Singapore. The VCC is a new corporate structure that can be used for a wide range of investment funds, providing fund managers with greater operational flexibility and cost savings.
It is envisaged that VCCs will be utilised across both traditional and alternative fund management strategies, and as open-ended or closed-end funds. Fund managers are also permitted to re-domicile their existing investment funds (with comparable structures) by transferring their registration to Singapore as VCCs.
The MAS has also launched a Variable Capital Companies Grant Scheme, which will help defray costs involved in incorporating or registering a VCC by co-funding up to 70% of eligible expenses paid to Singapore-based service providers. The grant is capped at S$150,000 for each application, with a maximum of three VCCs per fund manager.
The MAS had previously identified the asset management industry as a key area of growth in Singapore and the wider Asia Pacific region. The launch of the VCC framework is part of the MAS' drive to encourage more funds to be domiciled in Singapore, and enhance the country's value as an international fund management center.