Key takeaways
- MAS issues inaugural circular on governance and management of VCCs
- MAS clarifies that supervisory expectations in respect of VCCs are relevant to other fund structures where applicable
- VCC managers expected to review management practices of VCCs against Circular and address gaps in compliance
Introduction
On 26 June 2025, the Monetary Authority of Singapore (MAS) issued Circular No. IID 04/2025 (Circular) on the governance and management of variable capital companies (VCCs). The Circular follows MAS’ thematic review conducted in 2024 and outlines key observations, supervisory expectations and good practices for VCC managers.
MAS has clarified that while the Circular is premised on MAS’ observations in respect of VCCs, the supervisory expectations are also relevant to other types of fund structures where applicable.
We highlight below the main observations and expectations outlined in the Circular.