DBS Private Bank Launches Multi-Family Office Service with Singapore Variable Capital Company Framework or Clients to Setup Family Office or Investment Structure with Minimum of $11 Million for DBS MFO Service, Singapore VCC Framework Reduces Need to Setup Multiple Companies & Reduces Administration
12th June 2023 | Singapore
DBS Private Bank has launched a new Multi-Family Office (MFO) service using the Singapore Variable Capital Company framework (VCC) for clients to setup family office or investment structure with a minimum of $11 million (S$15 million) for the DBS MFO service. The Singapore VCC framework (Variable Capital Company framework) reduces the need for family offices to setup multiple companies and thus reduces administration. With the launch of DBS Multi-Family Office (MFO) service using the Singapore Variable Capital Company framework (VCC), clients now can setup a family office without the need to establish a primary company (holding structure), with DBS MFO service also managing the fund administration and custody of assets. DBS Managing Director & Group Head of Wealth Planning, Family Office & Insurance Solutions is Lee Woon Shiu, who is also a Board Member of DBS Trustee & DBS Foundation. DBS Private Bank Head of Family Office is Yvonne Lim. The Singapore Variable Capital Company (VCC) is a new corporate structure for investment funds in Singapore (14th January 2020). It can be formed as a single standalone fund, or as an umbrella fund with 2 or more sub-funds, each holding different assets. As of 14th October 2022, there are more than 660 Variable Capital Companies (VCC) in Singapore, with 1,300 sub-funds by 420 regulated fund management companies, and supported by more than 220 fund service providers. The VCC fund strategies are Private Equity / Venture Capital (33%), EAM / MFO (28%), Hedge Fund (20%), Traditional (14%), Others (5%). Earlier in 2023 January, Singapore central bank Monetary Authority of Singapore (MAS) extended the Variable Capital Companies Grant Scheme (VCCGS) for 2 years till 2025 (15/1/25), with the grant to co-fund 30% & maximum of S$30,000 of qualifying expenses to service providers (legal, tax, admin, compliance) to incorporate or register VCC in Singapore.
“ DBS Private Bank Launches Multi-Family Office Service with Singapore Variable Capital Company Framework or Clients to Setup Family Office or Investment Structure with Minimum of $11 Million for DBS MFO Service, Singapore VCC Framework Reduces Need to Setup Multiple Companies & Reduces Administration “
DBS Private Bank Launches Multi-Family Office Service with Singapore Variable Capital Company Framework or Clients to Setup Family Office or Investment Structure with Minimum of $11 Million for DBS MFO Service
DBS Private Bank launches new Multi-Family Office (MFO) service using the Singapore Variable Capital Company framework (VCC) for clients to setup family office or investment structure with a minimum of $11 million (S$15 million) for the DBS MFO service.
Singapore MAS Extends Variable Capital Companies Grant Scheme for 2 Years Till 2025, Co-Fund 30% with Maximum S$30,000 of Qualifying Expenses to Service Providers to Incorporate or Register VCC in Singapore
14th January 2023 – Singapore central bank Monetary Authority of Singapore (MAS) has extended the Variable Capital Companies Grant Scheme (VCCGS) for 2 years till 2025 (15/1/25), with the grant to co-fund 30% & maximum of S$30,000 of qualifying expenses to service providers (legal, tax, admin, compliance) to incorporate or register VCC in Singapore. As of 14th October 2022, there are more than 660 Variable Capital Companies (VCC) in Singapore, with 1,300 sub-funds by 420 regulated fund management companies, and supported by more than 220 fund service providers. The VCC fund strategies are Private Equity / Venture Capital (33%), EAM / MFO (28%), Hedge Fund (20%), Traditional (14%), Others (5%). The Variable Capital Company (VCC) is a new corporate structure for investment funds in Singapore. It can be formed as a single standalone fund, or as an umbrella fund with 2 or more sub-funds, each holding different assets. See below for Variable Capital Companies Grant Scheme (VCCGS) announcement | View: MAS Singapore Asset Management Survey 2021
The Variable Capital Companies Grant Scheme (“VCCGS”), first introduced on 15 January 2020 for a period of three years till 15 January 2023, has catalysed the adoption of Variable Capital Companies (“VCCs”) in Singapore. With effect from 16 January 2023, the VCCGS has been extended for a validity period of two years from 16 January 2023 to 15 January 2025 (both dates inclusive) (hereinafter referred to as the “Extended VCCGS”).
Under the Extended VCCGS, the Financial Sector Development Fund (“FSDF”) will co-fund 30% of qualifying expenses paid to Singapore-based service providers for qualifying work performed in Singapore in relation to the incorporation or registration of a VCC, up to a maximum grant cap of S$30,000 per application.
See also:
Applicant Eligibility – First-time Qualifying Fund Managersthat must not have previously incorporated a VCC or successfully re-domiciled a foreign corporate entity as a VCC and must not have previously applied for the VCCGS.
Project Eligibility – The Extended VCCGS is available only to First-time Qualifying Fund Managers that have incorporated a VCC or successfully re-domiciled a foreign corporate entity to Singapore as a VCC for the first time, and have obtained a Notice of Incorporation or Notice of Transfer of Registration from the Accounting and Corporate Regulatory Authority (“ACRA“) (as the case may be) which specifies a date between 16 January 2023 and 15 January 2025 (both dates inclusive). The following conditions apply:
- 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 Extended VCCGS for qualifying work performed in relation to one VCC that has been incorporated or successfully 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 the VCC and its sub-fund(s) (if any);
- A Qualifying Fund Manager may not claim co-funding under the grant scheme solely for registration of sub-fund(s) (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-fund(s) as part of the set-up of an umbrella VCC; and
- Applicants should formally submit their applications within three months from the date specified on the Notice of Incorporation issued by ACRA (for a newly incorporated VCC) or within three months from the date of ACRA’s approval of the VCC’s evidence of de-registration (for a foreign corporate entity re-domiciled to Singapore as a VCC).
Funding – 30% co-funding of qualifying expenses listed below, capped at S$30,000 per VCC.
- Legal services
- Tax services
- Administration or regulatory compliance services
Please refer to the downloadable Extended VCCGS Factsheet for full details on qualifying expenses: Extended VCCGS Factsheet(147.5 KB)
Minimum Operational Period – A VCC which has been awarded a grant under the Extended VCCGS is required to remain operational for at least one year from the Registration Date. This means that the VCC cannot be wound up within the first year from the Registration Date. In the event that the VCC is wound up within the first year from the Registration Date, the Qualifying Fund Manager is to inform MAS promptly and by no later than one week from the date of the application for the winding up or passing of resolution for a voluntary winding up. MAS reserves the right to claw back the grant awarded if the VCC is wound up within the first year from the Registration Date and/or if the recipient fails to inform MAS of the winding up of the VCC within one week from the date of the winding up.
- For VCCs incorporated or registered on or before 15 January 2023 as evidenced by the date specified in the Notice of Incorporation or Notice of Transfer of Registration issued by ACRA, the original VCC Grant Scheme parameters will apply. For further information, please write to [email protected].
- Refers to: (i) a licensed fund management company, i.e., a holder of a capital markets services license for fund management under section 86 of the Securities and Futures Act 2001 (“SFA”); (ii) a registered fund management company, i.e. a corporation which is exempted from holding a capital markets services licence under paragraph 5(1)(i) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations; or (iii) a financial institution exempted under sections 99(1)(a), (b), (c) or (d) of the SFA from the requirement to hold a capital markets services licence to carry on business in fund management, i.e., a bank licensed under the Banking Act 1970 (“BA”), a merchant bank licensed under the BA, a finance company licensed under the Finance Companies Act 1967 or a company or co-operative society licensed under the Insurance Act 1966. For VCCs incorporated or registered on or before 15 January 2023 as evidenced by the date specified in the Notice of Incorporation or Notice of Transfer of Registration issued by ACRA, the original VCC Grant Scheme parameters will apply. For further information, please write to [email protected].
- Registration Date refers to the date of incorporation or registration as specified on the Notice of Incorporation or Notice of Transfer of Registration issued by ACRA (as the case may be).
How to Apply
Interested parties can write to [email protected] to obtain the application form or for more information.
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