What are the requirements for migrating an offshore Fund to Singapore?
Do you own an investment fund that is currently domiciled in an offshore jurisdiction? If yes, have you thought of relocating it to Singapore? If that is the case, then you are in the right place. This article offers you the necessary guidelines to migrate an investment fund to Singapore and make it legit to run its operations. We will venture into the investment funds sector relating to the Cayman Islands, despite fund managers operating in Singapore, and keep in mind the VCC financial structure in Singapore.
Many fund managers globally often choose Singapore as the best center for funds since it has a stable regulatory framework that attracts international managers to migrate or incorporate investment funds in the country. It has regulations that encourage investments in the financial sector
The Amendments in the private funds sector in the Cayman Islands
Currently, the Cayman Islands private funds sector operates under regulations that were amended a while back. Private funds run under the Cayman Islands Monetary Authority’s jurisdiction as the area works on the anti-money laundering policies. The island went to a complete turnover a few months ago as every private fund to Singapore needed to adhere to the laws. As a result, the sector runs under stricter regulations which results in a higher cost. The law state that:
- Private funds must be audited annually by an officer approved by the CIMA
- The four-eyed rule that state every firm need two or more directors and two naturally employees are listed
- Firms must name anti-money laundering registered officers
- Demonstrate compliance to the current laws
The regulatory framework promotes transparency in the financial sector without limiting its operations.
The Cayman Islands offers funds to the Private Fund sector, but there are considerations to keep in mind when applying for the funds, including:
- Costs that come with these funds are high, and you must include compulsory audits‘ cost
- There is no guarantee that the government won’t add more laws with time since the island introduced more laws affecting the Private Fund sector last year
- The Cayman Islands remains in the list of non-cooperative jurisdictions and low-tax
Singapore attracts Fund managers locally and at the International Standards
Recent reports claim that many international business people are opting to migrate their fund to Singapore. Why is that? Setting up a business and operating it in the country is straightforward. The country features a stable regulatory structure that features powerful regulatory standards, high-quality labor resources, good administration, and an influential global connection. Reports from the last couple of years show how many fund managers have moved their businesses to Singapore.
The VCC Act
The Variable Capital Company act has advanced the financial environment. It is a structure that encourages the Singapore-based asset management sector, family offices, and fund to Singapore managers to work in the nation. This act is bold, but its effectiveness has placed Singapore among the top countries operating in the International investment sector.
The VCC act has boosted Singapore’s ability to compete at the International investment level improving the fund to Singapore’s Management sector. Its regulatory framework also plays a crucial role in making Singapore the home for international fund managers.