VCC Act 2018 and VCC Regulations 2020 come into operation

What changed?

The Variable Capital Companies Act 2018 came into force on 14 January 2020, together with the Variable Capital Companies Regulations 2020 — the principal subsidiary legislation prescribing forms, incorporation and registration procedures, and the modifications of Companies Act provisions as they apply to VCCs. Companion instruments on document lodgment, transfer of registration, and insolvency commenced alongside.

Why it matters for fund managers

From this date, a fund manager could actually incorporate a standalone or umbrella VCC — with variable capital, segregated sub-funds, and dividends payable out of capital — or re-domicile a comparable foreign fund structure into Singapore.