MAS, ACRA launches scheme to help fund managers cover investment funds

Fund managers can now incorporate or re-domicile VCCs online.

The Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) have unveiled a new framework that will help fund managers cover investment funds as variable capital companies (VCC), according to a news release.

With the new framework, fund managers can incorporate new VCCs or re-domicile existing investment funds across both traditional and alternative strategies and as open-ended or closed-end funds, using an online application form on ACRA’s website.

MAS also launched a VCC grant scheme that will help defray costs in incorporating VCCs by co-funding up to 70% of eligible expenses paid to service providers based in Singapore. The grant is capped at $150,000 for each application with a maximum of three VCCs per fund manager.

The scheme will be funded by the Financial Sector Development Fund and will take effect for up to three years.

MAS and ACRA held its pilot programme in September 2019, participated by 18 fund managers. They are said to have incorporated or re-domiciled a total of 20 investment funds as VCCs, consisting of venture capital, private equity, hedge fund and Environmental, Social, and Governance (ESG) strategies.