Raising the game for Singapore's fund management industry

THE introduction of the Variable Capital Company (VCC) framework is expected to raise the game for Singapore's fund management industry. How can the VCC be further enhanced to optimise the benefits for the funds industry?

Over the years, Singapore has gained recognition and popularity among investors as fund managers increasingly use the city-state as a platform to invest into various regions, particularly the Asia-Pacific.

Compared to other common fund domicile locations such as the Cayman Islands, Luxembourg and Ireland, Singapore had fewer legal forms available for fund vehicles to adopt. To address this, in 2016, the government announced the introduction of the Variable Capital Company (VCC) to further bolster Singapore's growth as a fund management hub. The legal, regulatory and tax framework has been firmed up now, and the VCC is expected to be launched early next year.