MAS to introduce a Singapore Variable Capital Company (S-VACC)

Published: 27 March 2017

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The Monetary Authority of Singapore (MAS) published on 23 March 2017 a public consultation on a new corporate structure for investment funds – the Singapore Variable Capital Company (S-VACC). Draft legislation has also been released (here).

To further develop Singapore as a centre for both fund management activities and investment fund domiciliation, the MAS proposes to set up a legislative framework for a new corporate structure that will provide collective investment schemes with an additional option to the common unit trust structure. In view of the possible economies of scale that can be offered by umbrella funds, the MAS also intends to allow the segregation of assets and liabilities of sub-funds established under a single legal entity.

The MAS is aiming for a flexible and efficient platform for fund managers to co-locate fund domiciliation with their substantive activities in Singapore. The proposed vehicle is intended to allow both open-ended and close-ended investment funds. Shares of the S-VACC would generally be issued and redeemed at net asset value and the  S-VACC’s assets must be managed by a Permissible Fund Manager.

The MAS invites comments from interested parties on the proposed framework and its accompanying draft legislation by 24 April 2017. If you like to be considered for the S-VACC WG (Newswire item), please email Laura Seah. If you have any questions or comments or would like to contribute to an AIMA position, please contact Kher Sheng Lee.