The aim is to offer asset managers greater flexibility and
lower costs.
The Monetary Authority of Singapore (MAS) has commenced a
public consultation on a new corporate structure for investment funds called
the Singapore Variable Capital Company (S-VACC).
To recall, there are currently three types of structures
used by investment funds in Singapore – unit trusts, companies formed under the
Companies Act, and limited partnerships. MAS said the S-VACC seeks to
complement these existing structures with one that is tailored for investment
funds.
"With the S-VACC framework, MAS seeks to offer a
flexible and efficient platform for fund managers to co-locate fund
domiciliation with their substantive fund management activities in Singapore
and further deepen the asset servicing ecosystem," noted MAS.
The proposed S-VACC framework is intended to cater to both
open-ended and closed-end investment funds, and allow for segregation of assets
and liabilities of sub-funds within an umbrella structure.
According to MAS,
this will allow asset managers to achieve cost efficiencies by consolidating
administrative functions at the umbrella fund level.
The S-VACC is proposed to be limited to investment fund
purposes only, and would be required to have a fund manager which is regulated
by MAS.
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