Retail funds have additional requirements compared to custodian banks. Q: What are the requirements for the VCC Fund Manager? A: A VCC must appoint an eligible fund manager to manage its assets or operate the CIS that make up the CRC. A qualifying fund manager may refer to: Since the introduction of VCC, fund managers have become increasingly interested in launching their funds in Singapore. We have highlighted some important points to consider when setting up HVAC structures in Singapore and what the basic requirements of HVAC are. Q: What are the basic requirements for foreign companies to set up in Singapore as VCCs? A: The basic requirements for foreign companies (FCE) to transfer domicile (i.e. Transfer of registration) to Singapore are as follows: With the exception of venture capital firms consisting of licensed schemes (usually a fund offered to retail investors in Singapore), venture capital firms may only have one director. The Director must ordinarily reside in Singapore and be either a director of the Director of the VCC or a qualified representative of the Manager. If VCC has more than one director, each of these requirements must be met by separate persons. The VCC director should also be fit and tidy. Q: Is there a template for VCC? A: The Singapore Academy of Law (SAL) has issued a set of guidelines and two model constitutions, one for open HVACs and one for closed CCVs.
These are available on the SAL website under singaporelawwatch.sg/About-Singapore-Law/VCC-Model-Constitutions for reference and/or adapted for use if necessary. Below we list the key considerations and qualification criteria for 13R and 13X for reference and comparison purposes. In general, fund managers may want to be aware of differences in local spending requirements, reporting requirements, and minimum amounts for assets under management. The MAS licensing process for VCC is also relatively simpler than traditional fund management structures, both in terms of ongoing compliance requirements and initial setup. This makes VCC a great alternative to existing structures such as limited partnerships, limited liability companies or trusts. In addition to the above differences, there are subtle differences from an operational perspective, such as administrator requirements, fund manager location, shareholder privacy, and financial reporting, which are general considerations for investors. Contact us now and our specialist will guide you through the process from start to finish, including business formation requirements, VCC structure, tax frameworks and strategies, audit, legal assistance and grant applications. The VCC must meet the administrator`s requirements (see below) VCCs are not exempt from the Securities and Futures Act.
They must meet the same requirements as mutual funds. The tax incentive conditions are granted to the CVC of the funds and not to the individual sub-funds. This is important because it could make it easier to meet tax incentive requirements. Q: What are the basic requirements for integrating a new CCV? A: The basic requirements for admission to a CCV are: (a) The proposed name of the CVC, year-end information, contact information for proposed CAC staff, head office, composition of the proposed CCV and, if applicable, declarations/approvals; (b) at least one director ordinarily resident in Singapore. This means that Singaporean citizens, permanent residents or EntrePass/Employment Pass holders may be eligible with a local residential address (subject to approval by the Ministry of Labour); (c) at least one director (who may be the same person referred to in paragraph 1(b)) who is either a qualified representative (within the meaning of the Variable Variable Corporations Act) or a director of the manager of the proposed CCV; (d) a manager who is an eligible fund manager must be entrusted with the management of the proposed TRC; and (e) payment of the required incorporation fee. First, while the VCC offers all the flexibility of an SSC fund, it should be faster, easier and cheaper to open and operate. This is partly because most of the regulatory requirements have already been met by fund companies in Singapore, saving time and money. Second, Singapore also allows everything to be done in a central area of Singapore, unlike Cayman Island, where most of the processes are done overseas, saving investors and fund managers significant costs. Q: Does a CCV need DSS approval before submitting an application to AIDA, and how long will it take? A: No, a CCV does not need to obtain MAS approval before it is incorporated.
However, the current requirements for the offering of shares of an IEC to persons resident in Singapore apply to venture capital companies under the Securities and Futures Act (Cap. 289). More details can be found on www.mas.gov.sg/regulation/capital-markets/offers-of-collective-investment-schemes. VCC is subject to the same accounting procedures as a Singaporean company. The company profile contains a unique entity number (NU) that is assigned directly to the VCC. The UEN is required for all transactions with government agencies such as the Accounting and Corporate Regulatory Authority (AIDA). VCCs may prepare their financial statements in accordance with SFRS, IFRS and US GAAP The certificate confirming the transfer by registration of VCC will also be issued free of charge to the tenant after successful registration. Note that other available products such as other certificates, personal profiles and registries will be introduced in later phases.
Please visit this page for more updates. The VCC must have a licensed fund manager (see below) In addition to the many benefits, the Monetary Authority of Singapore (MAS) also offers a useful VCC subsidy program. Fund managers have the option to pay the costs associated with underwriting a CRC using this grant program. The VCC offers an alternative to Singapore`s existing structures, namely mutual funds, limited partnerships, limited liability companies and companies. VCC is regulated by the Variable Corporations Act 2018 and the Accounts and Companies Regulatory Authority (ACRA) is the administrative authority of the VCC Act, except in relation to Anti-Money Laundering/Terrorist Financing (AML/CFT), which is supervised by the Monetary Authority of Singapore (MAS). With the application, applicants must pay a fee of S$400. This fee covers the registration fee. Under the ETF programme, the applicant`s fund must, inter alia, have a minimum fund size of S$50 million at the time of application and annual local business expenses of at least S$200,000. Obtaining ETF status requires approval from the Monetary Authority of Singapore (MAS).
In order to further drive VCC`s development and success in Singapore, MAS revised the VCC fund structure, also known as VCC 2.0, just months after its launch. MAS has given priority to expanding the list of fund managers who can use the system and simplifying the domiciliation of funds. However, upon request, CCVs must send this information to regulatory bodies such as MAS, IRAS and ACRA. The application may take a maximum of 14 days to process. In accordance with the announcement of MAS VCC N-01, VCC`s AML/CFT obligations are imposed The annual audit of VCC`s financial statements is required by an external auditor based in Singapore. (c) a financial institution exempt from the requirement under paragraph (a), (b), (c) or (d) of section 99 (1) of the Securities and Futures Act to hold a capital market services licence to carry on the business of administering funds, that is, an institution under the Bank Act (Cap. 19) licensed bank, a commercial bank licensed under the MAS Act (Cap. 186), a financial company licensed under the Finance Companies Act (Cap. 108) or a corporation or cooperative licensed under the Insurance Act (Cap. 142). It is important to note that all sub-funds established under the fund of funds must be registered within seven days.
In the last year alone, the creation of nearly 100 VCCs in 6 months has proven to be a great success, as several global fund companies are now based in Singapore.