The VCC (Variable Capital Companies) new corporate outline will grant fund managers greater cost savings and operational flexibility. Fund managers will also be able to incorporate new VCCs / re-domicile existing investment funds with comparable structures. This is achieved by transferring the registration to Singapore as VCCs via the ACRA’s online form.
Tejas Desai, partner at EY India told the Business Times commented:
The launch of VCC will raise the game for Singapore’s already robust fund management industry. It is expected to encourage fund managers to use Singapore as a master fund platform for US and European investors who have historically preferred jurisdictions such as Cayman Islands, Luxembourg or Ireland.
Over time, investment by Singapore fund managers into various Asian markets, including India, may flow through VCC structures.
The new structure is available for both open-end and closed-end funds, traditional and alternative funds whether private equity, venture capital, hedge fund or any other fund with different strategies. The VCC can be an umbrella entity with multiple funds or a stand-alone entity.
Recently as part of the pilot program started by MAS and Acra 20 investment funds have been incorporated or e-domiciled as VCCs by a group of 18 fund managers.
MAS assistant managing director Benny Cheysaid the new VCC framework will create greater prospects and opportunities for Singapore-based fund service providers such as legal tax advisers, accountants, fund custodians, and fund administrators.
To further attract international attention and investment to the new VCC framework in Singapore MAS has also created and launched a Variable Capital Companies Grant Scheme. The grant scheme will aid defray costs to do with incorporating and registering VCC by co-funding 70% of eligible expenses paid to Singapore-based service products. There is a minimum of three VCCs per fund with the grant capped at $150,000.
Recently Singapore has also seen investment in real estate with Singapore real estate is soaring thanks to China investors.
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