The process of\nmaking a law of Variable Capital Companies Act (\u2018VCC Act\u2019) in April 2022\ncharacters yet another landmark for Mauritius as it strengthens its position as\nthe International Financial Centre of choice for the region. The introduction\nof the Variable Capital Company (\u2018VCC\u2019) which was announced in April 2021, was\none of the action points that came from the National Budget 2020\/2021 under\ncontrol with the 10-year Blueprint that was well-known for the Mauritius IFC.<\/p>\n\n\n\n
The VCC Act has\nalso ensured that the legislative framework regulating the VCC complies with\nthe requirements of the Anti-Money Laundering\/Combatting the Financing of\nTerrorism.<\/p>\n\n\n\n
A VCC is a\ncompany incorporated under the Companies Act 2001 and which carries its\nactivities through its sub-funds and Special Purpose Vehicles (\u201cSPVs\u201d). A VCC\nneeds to be authorised by the Financial Services Commission, Mauritius (the\n\u201cCommission\u201d) as a VCC Fund pursuant to the VCC Act.<\/p>\n\n\n\n
A sub-fund of a\nVCC Fund, subject to the approval of the Commission, will operate as a\nCollective Investment Scheme (\u201cCIS\u201d) or a Closed-End Fund (\u201cCEF\u201d) of any\ncategory and may elect to have a separate legal personality from that of the\nVCC Fund. For example, a sub-fund can be approved to operate as a CIS and an\nExpert Fund. The sub-fund shall comply with all requirements under the\nFinancial Services Act (the \u201cFSA\u201d), Securities Act, Securities (Collective\nInvestment Schemes and Closed-end Funds) Regulations 2008, relevant FSC Rules\nand Guidelines applicable to a\/an CIS\/Expert Fund. A sub-fund of a VCC Fund can\nalso act as a feeder fund or a master fund.<\/p>\n\n\n\n
The rationale for using a VCC<\/strong><\/p>\n\n\n\n The VCC can operate as a standalone\nentity or as an umbrella structure comprising sub-funds. SPVs can also be set\nup under the VCC or its sub-funds. For fund managers having several investment\nstrategies and objectives, the VCC could prove to be the ideal vehicle since it\ncan have different sub-funds operating as either closed-end funds or open-ended\nfunds as well as SPVs. If it so wishes, the VCC, its sub-funds and SPVs can all\nshare a board of directors, a fund manager, CIS administrator and other service\nproviders which ultimately provides significant economies of scale.\nFurthermore, the sub-funds and SPVs in a VCC can opt to have a separate legal personality\nand be structured as companies.<\/p>\n","protected":false},"excerpt":{"rendered":" The process of making a law of Variable Capital Companies Act (\u2018VCC Act\u2019) in April 2022 characters yet another landmark for Mauritius as it strengthens its position as the International Financial Centre of choice for the region. The introduction of the Variable Capital Company (\u2018VCC\u2019) which was announced in April 2021, was one of the […]<\/p>\n","protected":false},"author":1,"featured_media":2109,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/posts\/2108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/comments?post=2108"}],"version-history":[{"count":1,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/posts\/2108\/revisions"}],"predecessor-version":[{"id":2110,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/posts\/2108\/revisions\/2110"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/media\/2109"}],"wp:attachment":[{"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/media?parent=2108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/categories?post=2108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.archglobalconsult.com\/wp-json\/wp\/v2\/tags?post=2108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}