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The Variable Capital Companies (VCCs) framework is an innovative and flexible investment fund structure that has gained prominence in the global financial landscape. Introduced in 2020 to facilitate the establishment and operation of investment funds, VCCs provide a versatile framework for both traditional and alternative investment strategies. Touted as a revolutionary breakthrough in the fund management world, VCCs have transformed the way funds are structured and managed, providing a new paradigm for unparalleled versatility and operational efficiencies. As of October 2022, more than 660 VCCs, representing over 1,300 sub-funds, have been established.
There are two key types of VCC schemes:
| Authorised Scheme | Restricted Scheme |
|---|---|
|
Collective investment scheme authorised by MAS to be offered in Singapore to retail investors |
Collective investment scheme notified to MAS to be offered in Singapore to accredited investors |
| Step | Indicative Timeline | Key Parties Involved | |
|---|---|---|---|
 |
VCC Name
|
3 days (may take 14-60 days if application needs to be referred to another agency) |
|
 |
VCC Constitution
|
Up to 1 month |
|
 |
Incorporation
|
3 days (may take 14-60 days if application needs to be referred to another agency) |
|
 |
Bank Account and Service Providers
|
1-2 months (can be done simultaneously) |
|
 |
Sub-Funds
|
Up to 3 days if it is referred to MAS (can be done simultaneously) |
|
 |
Fund Documentation and Offering
|
1-3 months (can be done simultaneously) |
|
| 16 January 2023 to 15 January 2025 | ||
|---|---|---|
 |
Validity Period |
16 January 2023 to 15 January 2025 |
 |
Applicant Eligibility |
|
 |
Grant Eligibility |
Additional conditions apply, please refer to:https://www.mas.gov.sg/schemes-and-initiatives/variable-capital-companies-grant-scheme |
 |
Funding |
30% co-funding of qualifying expenses, capped at S$30,000 per VCC
|
 |
Minimum Operational Period |
|
MAS is planning to introduce enhancements to the VCC structure, known as VCC2.0. This is in response to feedback from the industry and to ensure that the VCC remains adaptable to the evolving needs of fund managers and investors in dynamic markets.
Some proposed features to look forward to include:
Amending existing legislation to allow fund managers to convert their existing funds, currently structured as companies or unit trusts, into VCCs
Expanding the scope of fund managers eligible to use the VCC structure, potentially including specific classes and license exempt managers such as single-family offices
VCCs offer a compelling opportunity for fund managers and investors alike. Supported by a robust government framework, the VCC structure is rapidly gaining traction, positioning itself as an increasingly popular fund structure in the investment landscape. SingAlliance is an independent wealth manager with a global presence in Singapore, Geneva, Hong Kong and Dubai. As a CMS-licensed fund manager, SingAlliance is your trusted partner in setting up and managing your VCC. Leveraging our expertise and extensive network of service providers, we ensure a seamless journey as you tap into the full potential of VCCs, empowering you to navigate the evolving financial landscape with confidence.
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WeDigest > Family Office > Navigating W...
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