Singapore legislation
Regulation 10AC
of Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005
Regulation 10AC
Prescribed requirements for contractual arrangements where collective investment scheme is constituted as non-umbrella VCC
Where a collective investment scheme (called in this regulation the scheme) is constituted as a non-umbrella VCC, the prescribed requirements in relation to the contractual arrangements in respect of the scheme for the purposes of section 286(2A)(c) of the Act are that —
the contractual arrangement between the non-umbrella VCC and its directors contains provisions that bind the directors to exercise all due diligence and vigilance in carrying out the directors’ functions and duties in respect of the scheme and in safeguarding the rights and interests of the participants of the scheme;
the contractual arrangement between the non-umbrella VCC and its manager contains provisions that —
bind the manager to use the manager’s best endeavours to —
carry on and conduct the business of the non-umbrella VCC in a proper and efficient manner; and
ensure that the scheme is carried on and conducted in a proper and efficient manner;
bind the manager to pay to the non-umbrella VCC within 5 business days after the receipt by the manager of any money that, under the constitution or the contractual arrangement, is payable by the manager;
specify full particulars with respect to the retirement, removal and replacement of the manager;
specify full particulars of the remuneration of the manager and the manner in which the remuneration is to be paid; and
specify the party to whom interest on monies held by the manager pending payment to the non-umbrella VCC is to accrue; and
the contractual arrangement between the non-umbrella VCC and the custodian of the scheme must contain provisions that —
set out the duties of the custodian to the participants of the scheme, and information as to the circumstances in which the money, securities, securities-based derivatives, units in a collective investment scheme, investments and other property attributable to the scheme are or are to be vested in the custodian;
bind the custodian to pay to the non-umbrella VCC within 5 business days after the receipt by the custodian of any money that, under the constitution or the contractual arrangement, is payable by the custodian to the non-umbrella VCC;
specify full particulars with respect to the retirement, removal and replacement of the custodian; and
specify full particulars of the remuneration of the custodian and the manner in which the remuneration is to be paid.