The Variable Capital Company (VCC): a new corporate structure for funds in Singapore

The Variable Capital Company (VCC) is a new corporate entity structure under which several collective investment schemes (whether open-end or closed-end) may be gathered under the umbrella of a single corporate entity and yet remain ring-fenced from each other. 

It is similar to the open-ended investment company structure in the UK and protected cell company or segregated portfolio company structures in jurisdictions like Guernsey or the Cayman Islands. The corporate entity structure gives funds an alternative to other fund structures available in Singapore, namely, limited partnerships, limited liability partnerships and companies.

The VCC is regulated under its own legislation, the Variable Capital Companies Act 2018, which was passed on 1 October 2018 and which came into force on 14 January 2020. 

In this publication, we explain the key features of the VCC, the legal framework relating to the incorporation and establishment of a VCC, and set out a comparison of the VCC structure against the other fund structures in Singapore.

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This content was originally published by Allen & Overy before the A&O Shearman merger