Memorandum on Singapore Variable Capital Companies

"A major legislative milestone was reached for fund domiciliation in Singapore on 1 October 2018, with the Singapore Variable Capital Companies (VCC) bill voted and passed by parliament. The advantages of the VCC have been discussed and mooted since early 2017. The bill is currently being reviewed by a parliamentary committee and "will come into force in 2019."1

The VCC will be a new corporate entity type established under the Singapore Variable Companies Act (the ‘Act’)². Fund managers will be able to avail themselves of VCC in addition to private limited companies, limited partnerships and unit trust structures for fund management purposes.

The regulatory framework underpinning VCC has been specially designed by legislators for investment funds and enhances Singapore's position as a leading financial centre.

VCC will complement Singapore's fund management capabilities by diversifying fund structure options available here, allowing both fund management and fund domiciliation to take place locally.

This article was published in the 2018/2019 IFC Review. Click here to read the full article on pages 87-89.

^{1 Note from Indranee Rajah S.C. Minister in the Prime Minister's Office, Second Minister for Finance and Education dated 2 October 2018. Retrieved from http://www.singaporelawwatch.sg/Portals/0/Indranee%20Rajah%20Note%20on%20Variable%20Capital%20Companies%20Bill.pdf on 10 October 2018.}

^{2 References in this memo to sections of the Act refers to sections of Bill No. 40/2018 of the Singapore Parliament 2018. Retrieved from https://www.parliament.gov.sg/docs/default-source/default-document-library/variable-capital-companies-bill-40-2018.pdf on 11 Oct 2018.}