Variable Capital Company (VCC)

A VCC is a company incorporated under the Companies Act and which carries its activities through sub-funds and Special Purpose Vehicles (SPVs).

What type of sub-funds can be operated by a VCC Fund?

A sub-fund of a VCC Fund, subject to the approval of the Commission, will operate as a Collective Investment Scheme (“CIS”) or a Closed-End Fund (“CEF”) of any category and may elect to have a separate legal personality from that of the VCC Fund. For example, a sub-fund can be approved to operate as a CIS and an Expert Fund. The sub-fund shall comply with all requirements under the Financial Services Act (the “FSA”), Securities Act, Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008, relevant FSC Rules and Guidelines applicable to a/an CIS/Expert Fund.

 

A sub-fund of a VCC Fund can also act as a feeder fund or a master fund.

What activities can be conducted by an SPV?

 An SPV of a VCC Fund, subject to the approval of the Commission, shall operate as a vehicle ancillary to a sub-fund or the VCC Fund and, may elect to have a separate legal personality from that of the VCC Fund.

What are the ongoing obligations of a VCC Fund?

 A VCC Fund shall comply with all the requirements of the VCC Act, FSA, the FIAMLA as well as any other relevant laws.

 

 

In addition, a sub-fund of a VCC Fund shall comply with all applicable provisions of the Securities Act, the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008, FSC Rules and Guidelines.