The IFSCA set up this Committee to explore the potential for allowing another legal structure, popularly known as a VCC, as an additional option through which asset managers could pool the investors’ funds.
The VCC structure removes some of the key limitations of companies.
It provides for higher regulatory standards than those applicable to trusts.
Report of the committee
The Committee assessed the features of a VCC or its equivalent, in other countries such as the UK, Singapore, Ireland and Luxembourg.
The Committee recommended the adoption of a VCC-like legal structure for the purpose of conducting fund management activity in IFSCs
The Committee recognized that the legal framework governing entities should provide certainty and clarity to investors.
