Proposed Framework for Singapore Variable Capital Companies (S-VACC)

19 Jul 2017 LegisWatch

On 23 March 2017, the Monetary Authority of Singapore ("MAS") published the Consultation Paper on the Proposed Framework for Singapore Variable Capital Companies (the "Consultation Paper"). Recognising the restrictions involved in the use of a company structure for collective investment schemes ("CIS"), as well as the potential economies of scale that can be reaped by umbrella funds, the Consultation Paper proposes to offer an alternative structure known as the Singapore Variable Capital Company ("S-VACC") to sponsors of investment schemes. The S-VACC is a new corporate structure tailored to the needs of CIS, in addition to the common unit trust structure commonly employed by mutual fund managers in Singapore today. The proposed S-VACC aims to offer flexibility in relation to changes in paid-up capital, efficiency in administering sub-funds and greater privacy for investors. However, the S-VACC will share some characteristics of a company structure, such as mandating a board of directors and imposing statutory duties on the directors.

If you have any queries or would like to know more about how these changes may impact you, please contact:

LOW Kah Keong

Head – Asset Management & Funds Practice
d +65 6416 8209
Click here to see Kah Keong’s CV.