Singapore funds await capital company structure changes

Author: Karry Lai | Published: 23 Jul 2019

Sources in the asset management industry are enthusiastic about a new corporate structure for funds. Expected to take effect in 2019, proposed changes could be an important step in attracting funds to set up in Singapore and are a potential game changer for the asset management industry.

However, much work remains until the Singapore Variable Capital Companies (VCC) structure is implemented, including further dialogue the Monetary Authority of Singapore needs to have with industry on taxation and regulatory issues.

"The proposed framework is business friendly, flexible and will serve the needs of mainstream and alternative investment products," said Jason Eng, general counsel and chief compliance officer at Dymon Asia. "It’s a positive step overall in allowing Singapore to bring the entire substance and ecosystem of fund management to its shores."

From a private funds perspective, too, there is excitement about the proposals for the introduction of the new VCC...