Understanding the Singapore Variable Capital Company (VCC)

On 10 September 2018, the Monetary Authority of Singapore announced that the VCC Act was tabled in Singapore Parliament. This highly anticipated announcement comes after the close of the public consultation of the same legislation in April 2017. Here, we highlight some of the key aspects of the VCC and how it will elevate Singapore’s position in becoming a globally competitive fund domicile.
 

An analysis of comparative structure

An analysis of comparative structures

With the introduction of the VCC in the asset management market, Singapore is elevating its position as a prominent funds hub. The VCC has its own legal framework, enabling it to be used for alternative and traditional investment fund across either closed- or open-ended strategies. In this publication, we compare the VCC with various corporate form investment fund structures in other prominent fund domiciles.

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What is VCC?

VCC is a new legal entity form / structure for all types of investment funds in Singapore. It can be formed as a single standalone fund, or as an umbrella fund with two or more sub-funds, each holding different assets.

For more information, please visit the Monetary Authority of Singapore’s (MAS) webpage for VCC bill and the consultation paper.

What can VCC be used for?

  • For traditional and alternative fund strategies (both open-ended and close-ended)
  • To list funds as information listing and trading purpose
  • As a pooling and investing vehicle, thereby dispensing multi-tiered fund structures

What are the benefits?

The benefits of VCC include greater flexibility and improved operational and tax efficiency, thereby facilitating investment fund operations and addressing global investment funds' needs. It helps to reap more economies of scale, achieve cost efficiency and promote foreign funds re-domiciliation.


Contact us

Justin Ong

Asia Pacific Asset and Wealth Management Leader, PwC Singapore

Tel: +65 6236 3708

Armin Choksey

Partner, Asian Investment Fund & Market Research Centre Leader, PwC Singapore

Tel: +65 6236 4648

Anuj Kagalwala

Partner, Asset & Wealth Management Tax Leader, PwC Singapore

Tel: +65 9671 0613

Tan Hui Cheng

Partner, Asset & Wealth Management Tax, PwC Singapore

Tel: +65 8338 5182

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