To encourage fund managers to adopt the new VCC framework, the MAS are making grants available to cover up to 70% of the set up costs. Capped at $150,000, the grants are well worth considering for anyone looking to set up a fund under the new regime and include support from firms like Bovill.
The Variable Capital Companies regime was launched in January by the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority as a new corporate structure tailored for investment funds. To “catalyse” early adoption of VCCs, MAS launched a VCC Grant Scheme (VCCGS) alongside the regime. Operating under the Financial Sector Development Fund – or FSDF – the grant scheme co-funds qualifying expenses paid to Singapore-based service providers for work done in Singapore.
Who is eligible for the VCC Grant Scheme?
Applicants to the VCCGS should be Qualifying Fund Managers that have incorporated a VCC or have successfully re-domiciled a foreign corporate entity to Singapore as a VCC, and have obtained a notice of incorporation or transfer of registration from ACRA.
MAS have outlined a number of conditions for a project to be eligible:
- The set up of the VCC cannot be simultaneously funded by other government grants/incentives with respect to the same set of qualifying costs and commitments.
- Each applicant may only apply for the VCCGS for work done in relation to a maximum of three VCCs that have been successfully incorporated or re-domiciled.
- Qualifying expenses must be paid to Singapore-based service providers for work done in Singapore in relation to the incorporation and registration of VCCs and their-sub funds
- A Qualifying Fund Manager may not claim co-funding under the grant scheme solely for registration of sub-funds (without the accompanying incorporation or transfer of registration of a VCC). However, a Qualifying Fund Manager may claim qualifying set up costs incurred for the registration of sub-funds as part of the set up of an umbrella VCC.
- Applicants should formally submit their applications within three months from the date on the notice of incorporation or notice of transfer of registration issued by ACRA.
Funding under the VCC Grant Scheme
The scheme offers funding in a number of different areas, up to 70% of qualifying expenses capped at $150,000 per VCC. These include law firms, tax advisors, fund administrators and regulatory consultants.
Working with Bovill under the VCC Grant Scheme
Support from Bovill in setting up your VCC qualifies under the VCC Grant Scheme. As regulatory experts we can advise on how the VCC regime is applicable to your firm and help you get registered, as well as providing ongoing support for all your compliance needs.
You can find out more about the regime here: Singapore VCC regime – what you need to know