New Vehicles for Singapore Funds

Transcription

1 New Vehicles for Singapore Funds Sunil Iyer 23 August 2017 SINGAPORE HONGKONG 20 YEARS IN PRACTICE

2 CURRENT REGIME IN SINGAPORE New Vehicle for for Singapore Funds 2

3 CURRENT REGIME IN SINGAPORE Current Regime in Singapore Funds in Singapore are currently constituted as: Unit Trusts mostly for open-ended Collective Investment Schemes to Retail investors Private Limited Companies mostly for closed-ended funds to high net worth investors Limited Partnerships rare 3

4 CURRENT REGIME IN SINGAPORE (CONT D) Current Regime in Singapore (Cont d) Private Limited Companies are inefficient vehicles for funds: Governed by Companies Act, can be cumbersome: Solvency requirements before capital redemption Dividends cannot be paid from capital Issuance of new units can be an involved process Fund needs to be structured to avoid investors being treated as debt investors 4

5 NEW S-VACC VEHICLE 5

6 SINGAPORE VARIABLE CAPITAL COMPANY ( S-VACC ) Singapore Variable Capital Company ( S-VACC ) A new corporate structure for CIS Proposed new S-VACC vehicle. Targeted at increasing Singapore s competitiveness as a fund jurisdiction S-VACC will generally be able to redeem shares at the fund s NAV and to pay dividends from capital No requirement to disclose financial statements or shareholder registers 6

7 SINGAPORE VARIABLE CAPITAL COMPANY ( S-VACC ) (CONT D) Singapore Variable Capital Company ( S-VACC ) (Cont d) Must be managed by a Permissible Fund Manager (may disqualify Single Family Offices) An approved custodian must be appointed for the S-VACC Inward re-domiciliation of foreign structures will be possible under certain conditions 7

8 SINGAPORE VARIABLE CAPITAL COMPANY ( S-VACC ) (CONT D) Singapore Variable Capital Company ( S-VACC ) (Cont d) Availability of Umbrella Fund Structure Cellular structure proposed where sub-funds can operate as separate cells (each having different investments/investors) May lead to lower cost and operational efficiency 8

9 Q&A Q&A 9

10 SERVICES Services: International & Domestic Tax Company Formation & Administration Trusts & Foundations Immigration & HR The insight to be your trusted adviser Regulatory & Compliance Accounting & Financial Reporting 10

11 CONTACT US Contact Us Shanker Iyer Phone Mobile Robinson Road #17-01 SBF Center Singapore Sunil Iyer Phone Mobile Robinson Road #17-01 SBF Center Singapore Sanjay Iyer Phone Mobile Unit 29E, 29/F Admiralty Centre Tower 1 18 Harcourt Road, Admiralty Hong Kong Read our free publications at iyerpractice.com. For the latest business/finance related updates, follow us on : Disclaimer: This presentation of slides is intended as a general guide only, and the applic ation of its contents to specific situations will depend on the partic ular c irc umstances involved. Accordingly, readers should seek appropriate professional advice regarding any particular problems that they encounter, and this presentation should not be relied on as a substitute for this advice. While all reasonable attempts have been made to ensure that the information contained in this presentation is accurate, Iyer Prac tice accepts no responsibility for any errors or omissions it may c ontain, whether c aused by negligence or otherwise, or for any losses, however c aused, sustained by any person that relies on it. 11