A grant scheme to help fund managers defray costs when incorporating or registering what are called variable capital companies (VCC) started yesterday.
The Monetary Authority of Singapore (MAS) will co-fund up to 70 per cent of eligible expenses paid to Singapore-based service providers. The grant is capped at $150,000 for each application, with a maximum of three VCCs per fund manager.
The scheme is available for three years and is meant to encourage industry adoption of the freshly launched VCC framework here.
It allows fund managers to constitute investment funds as VCCs across both traditional and alternative strategies, and as open-ended or closed-ended funds.
The framework aims to give fund managers more flexibility and cost savings while encouraging more funds to be domiciled in Singapore.
An inaugural batch of 20 investment funds were incorporated or re-domiciled as VCCs by a group of 18 fund managers yesterday as part of a pilot programme that started last September.
Number of investment funds incorporated or re-domiciled as variable capital companies by a group of 18 fund managers yesterday, as part of a pilot scheme.
Mr Benny Chey, MAS assistant managing director (development and international), said the new VCC framework will create opportunities for Singapore-based fund service providers such as legal and tax advisers, accountants, fund administrators and fund custodians.
THE BUSINESS TIMES