Singapore’s Upcoming New Flagship Fund Vehicle

In Singapore, government agencies have, over the years, been making a concerted effort working closely with the financial and investment community to grow and enhance Singapore’s position as a regional and global asset management hub. The Monetary Authority of Singapore (“MAS”), in particular, has been instrumental in this regard with its reputation of being a very engaging, measured and forward thinking regulator.

The results have been stunning and arguably Singapore has successfully positioned itself as a leading regional asset management hub serving as a pan-Asian gateway for regional and global investors.  

To build on the success and the growth of the industry, it was announced on 16 March 2016 by Ms. Indranee Rajah, Senior Minister of State for Law and Finance, that the MAS together with the Accounting and Corporate Regulatory Authority of Singapore (“ACRA”) were studying the introduction of an open-ended investment company regime for investment funds that will facilitate the local domiciliation of funds and promote the fund administration industry in Singapore. It is hoped that this new regime will give an added boost to an already vibrant asset management ecosystem.

On 23 March 2017, the consultation paper on the new corporate fund vehicle, named the Singapore Variable Capital Company (“S-VACC”), was issued by the MAS. In coming up with the proposed new framework, the MAS took into account laws and practices of other leading fund jurisdictions such as Luxembourg, the Republic of Ireland and the United Kingdom where similar open-ended corporate-type fund vehicles already exist.