CONSULTATION PAPER ON THE PROPOSED FRAMEWORK FOR VARIABLE CAPITAL COMPANY (VCC) PART 2

The Variable Capital Companies Act (“VCC Act”) was passed in Parliament on 1October 2018. The VCC Act provides the legislative framework for the incorporation, operation, and regulation of a new corporate structure that is tailored for collective schemes, known as the variable capital company (“VCC”).The Monetary Authority of Singapore (“MAS”) is now consulting on (i) the proposed new regulations for the VCC framework; and (ii) other amendments to existing rules and regulations, such as the SFR(CIS), CIS Code and AML/CFT notice for VCCs, to provide the operational framework to facilitate the implementation of this new regime. The proposed regulations are adapted from existing regulations under the Companies Act (Cap. 50) (“CA”). Among other things, these proposed regulations set out details in relation to the operation of the VCC framework, including the incorporation of a VCC, the registration of sub-funds and the re-domiciliation to Singapore of foreign corporate entities as VCCs.The VCC complements the existing structures available for use by fund managers in Singapore, namely unit trusts, companies incorporated under the CA and limited partnerships governed under the Limited Partnerships Act. The introduction of the VCC will provide an additional structuring option for Singapore-based fund managers to domicile their investment funds locally and enhance Singapore’s position as a full-service international fund management centre.MAS invites interested parties to provide their comments and feedback on these proposed regulations. Please submit comments by 30 May 2019 via email to vcc@mas.gov.sg.Date: 30th April 2019Click to read the full article (MAS News and Publication Releases)

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