Regulations for VCCs

How can I structure a sub fund under a VCC?

Under the VCC Act, the sole objective of a VCC is to be a collective investment scheme. Prior to a VCC structure, the available structures for a CIS (Collective Investment Scheme) were Unit Trusts, Company regulated by the Companies Act 1967, and a Limited Partnership structures.

The VCC structure is tailored for investments funds constituted as a body corporate (like a Company) but with other features such as being able to pay distributions out of capital, and a cellular structure under a single legal entity where one sub-fund’s insolvency will not affect the assets of the other sub-fund.

The umbrella VCC structure can accommodate more than 1 sub-fund. Each sub-fund can have separate investors and investments.

Registration will have to be done for each sub-fund set-up.