Singapore Plans New Corporate Structure for Investment Funds

The Monetary Authority of Singapore (MAS) today commenced a public consultation on a new corporate structure for investment funds – the Singapore Variable Capital Company (S-VACC). The structure is said would offer asset managers greater flexibility and lower costs, according to releases.

Lawrence Wong, Minister for National Development and Second Minister for Finance, said that the S-VACC structure would offer asset managers greater flexibility and lower costs, according to releases.

Currently, there are three types of structures used by investment funds in Singapore, namely unit trusts, companies formed under the Companies Act and limited partnerships. The S-VACC seeks to complement these existing structures with one that is tailored for investment funds. With the S-VACC framework, MAS seeks to offer a flexible and efficient platform for fund managers to co-locate fund domiciliation with their substantive fund management activities in Singapore and further deepen the asset servicing ecosystem.