Practice Direction No. 1 of 2026 on External Private Capital Arrangements in Accounting Entities

ACRA has issued Practice Direction No. 1 of 2026 on External Private Capital Arrangements in Accounting Entities.

In recent years, there has been growing interest in external private capital arrangements in accounting entities, both globally and in Singapore. While such arrangements may provide access to capital to expand services, invest in technology and pursue strategic acquisitions, they may also create commercial pressures and conflicts of interest if not properly managed.

This Practice Direction sets out the key considerations and regulatory expectations for accounting entities considering, implementing, or operating under such arrangements that may affect their ownership, governance or control structures, ensuring that audit quality, professional ethics and independence – elements fundamental to Singapore's trusted business environment – are upheld.

We encourage accounting entities to engage ACRA early should they consider PE investments. We believe this collaborative approach supports market evolution while safeguarding audit quality.

Read the Practice Direction here: Practice Direction No. 1 of 2026 on External Private Capital Arrangements in Accounting Entities.