Singapore legislation
Regulation 5
of Variable Capital Companies (Assignment of Proceeds of an Action) Regulations 2026
Regulation 5
Duties of relevant insolvency practitioner
Subregulation 1
A relevant insolvency practitioner must not solicit an offer under regulation 4 from a Third‑Party Funder in which the relevant insolvency practitioner, directly or indirectly, holds any share or other ownership interest.
Subregulation 2
A relevant insolvency practitioner must not acquire, directly or indirectly, any share or other ownership interest in a Third‑Party Funder which has a Funding Agreement with the VCC concerned or the umbrella VCC of the sub‑fund concerned.
Subregulation 3
A relevant insolvency practitioner must not receive any commission, fee or share of proceeds from a Third‑Party Funder which has a Funding Agreement with the VCC concerned or the umbrella VCC of the sub‑fund concerned.
Subregulation 4
Paragraph (3) does not prohibit the receiving of any fee, disbursement or expense payable by the VCC or sub‑fund for the provision of services by the relevant insolvency practitioner as liquidator to the VCC or sub‑fund.
Subregulation 5
The relevant insolvency practitioner must retain control and oversight over the conduct of the relevant action in relation to which a Funding Agreement was entered into.
Subregulation 6
The relevant insolvency practitioner must not take instructions from the funder on the conduct of the relevant action.
Subregulation 7
When bringing or continuing any relevant action before the Court, a relevant insolvency practitioner must disclose to the Court and to every other party to the relevant action —
the existence of any Funding Agreement related to the costs of those proceedings; and
the identity and address of any funder involved in funding the costs of those proceedings.
Subregulation 8
The disclosure under paragraph (7) must be made —
at the date of commencement of the proceedings relating to the relevant action where the Funding Agreement is entered into before the date of commencement of those proceedings; or
as soon as practicable after the Funding Agreement is entered into where the Funding Agreement is entered into on or after the date of commencement of those proceedings.