Variable Capital Company (VCC)
The Variable Capital Company (VCC) is an investment fund structure that complements the range of investment fund options in Singapore.
What is a Variable Capital Company (VCC)?
The Variable Capital Company (VCC) represents a new investment fund structure introduced under the Variable Capital Companies Act, effective from January 14, 2020. This new structure adds to the range of investment fund options available in Singapore.
The VCC Act and its related regulations are overseen by the Accounting and Corporate Regulatory Authority (ACRA). All VCCs must be managed by an authorized fund manager. Compliance with anti-money laundering and counter-terrorism financing regulations for VCCs falls under the jurisdiction of the Monetary Authority of Singapore (MAS).
Key Characteristics of a VCC
- Flexible Capital Structure: The VCC features a variable capital structure that allows for flexible issuance and redemption of shares. It also permits dividend payments from capital, providing fund managers with greater flexibility in managing dividend distributions.
- Fund Structures: A VCC can operate as a single standalone fund or as an umbrella fund containing multiple sub-funds, each with its own distinct set of assets and liabilities. Umbrella VCCs may benefit from cost efficiencies by sharing service providers among the umbrella and its sub-funds.
- Fund Strategies: VCCs are suitable for both open-ended and closed-end fund strategies.
- Formation and Re-domiciliation: Fund managers can either establish new VCCs or transfer their existing international funds with similar structures to Singapore as VCCs.
- Shareholder Register: VCCs must maintain a register of shareholders, which is not publicly accessible but must be available to public authorities for regulatory, supervisory, and law enforcement purposes.
For additional information about the VCC framework, visit www.mas.gov.sg
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