Singapore Variable Capital Company (VCC)

04 August 2020

A new type of fund structure, the Variable Capital Company creates more flexibility for funds to be both managed from and domiciled in Singapore.

This is an encouraging move for Singapore’s growing fund management industry and aims to enhance Singapore’s appeal as a jurisdiction of choice for the fund industry, bringing it to the same level as international fund domicile centres like Cayman Islands, Dublin and Luxembourg.

The new VCC framework is expected to significantly boost the activities of lawyers, bankers and accountants, as well as fund administration service providers such as ZEDRA.

The introduction of this new VCC framework will allow us to offer new and innovative solutions to clients who will benefit from a Singaporean domiciliation of fund assets together with the supporting service providers being based in the same location. As a fund administrator, it will also streamline our operations, allowing us to offer a more integrated fund administration proposition to clients.

Previously, many funds managed by fund managers in Singapore were domiciled in other jurisdictions with more flexible corporate structures that cater to the fund management industry. The VCC Bill will allow management and domiciliation to be brought under one roof and will also allow for a re-domiciliation mechanism for existing overseas investment funds to be re-domiciled in Singapore.

For more information, please contact us.

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