Stay Informed on VCC
MAS Update on VCC
In mid-January, the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA), jointly announced the public launch of the Variable Capital Company (VCC) framework.
The VCC can be either a stand-alone entity or an umbrella structure, similar to a SICAV (Luxembourg), a unit trust (Ireland), or a segregated portfolio company structure (Cayman Islands). Although the structure and its use is in its infancy, Optionality is already involved with early adopters of the framework.
Of note, after successfully forming and registering a new VCC, applicants may apply to the MAS for a reimbursement of 70% of the cost of the VCC set up and registration, up to S$150,000 for each of 3 VCC. This initiative will last until January 2023.