On 15 January 2020, Singapore launched the Variable Capital
Companies (VCC) Act. Samuel Chang, Commercial Director, and Neco
Dusseldorp, Senior Manager Fund Services, discuss the main
characteristics and what this new fund structure means for
Singapore.
The VCC Act was passed by parliament on 1 October 2018. The Act
provides for the incorporation of a VCC, which is a legal entity
specifically designed for Alternative Investment Funds (AIFs).
SINGAPORE DOMICILED FUNDS PRIOR TO THE VCC ACT
In Singapore, fund managers are regulated by the Monetary
Authority of Singapore (MAS). Licensing ranges from exempted fund
managers to the heaviest regulated – Capital Markets Services
License. Singapore didn't have a fund vehicle that's tax
transparent. In this respect, Singapore had a backlog compared to
other countries as a fund jurisdiction and saw fund managers based
in Singapore use other jurisdictions to set up their fund - mainly
the Cayman Islands. To counter this, and
