PwC Singapore’s Post

Singapore’s upcoming roll-out of the single-family office (SFO) framework will provide ultra-wealthy families with greater clarity, and attract those seeking certainty and transparency. However, the framework may not appeal to wealthy families who want simplicity and the best tax incentives. The new framework lays out the criteria for SFOs to qualify for licensing exemptions; introduces new notification and reporting requirements; and strengthens protections against potential money-laundering risks.   Gaven Koh, Head of Risk and Compliance at WRISE Group was quoted, sharing that that framework would streamline application or approval timelines, and attract more families to Singapore that are looking for transparency and certainty in the application process. For instance, Singapore’s SFO tax-incentive schemes are contingent on certain spending thresholds – an additional requirement compared with those of Hong Kong and Dubai.   Gaven notes that Singapore will have the most comprehensive framework compared to Hong Kong and Dubai, with Hong Kong lacking a dedicated framework for SFOs. This results in regulatory ambiguity, pushing families to structure their vehicles with care to avoid breaching any licensing requirements. This less-codified approach in Hong Kong may discourage families from setting up there.   Beyond tax incentives, Singapore has other schemes aimed at attracting global talent and investors. The Global Investor Programme (GIP) and the Overseas Networks & Expertise (ONE) Pass, for instance, draw talented individuals and capital owners. Read more here: https://lnkd.in/ghs6NhZ9 #WRISE #WealthManagement #FamilyOffice #SingaporeSFOFramework

Singapore is rolling out a single-family office (SFO) framework to enhance clarity and transparency for ultra-wealthy families, establishing licensing exemption criteria, reporting requirements, and anti-money laundering protections. In an interview with The Business Times, Gaven Koh, Head of Risk and Compliance at WRISE, weighs in on how the added structure will strengthen Singapore's position as a global wealth hub. With the codifying of tax incentives and licensing exemptions, he highlights that the new framework will offer ultra-wealthy families much-needed transparency and efficiency in the application process. A big thank you to Nai Lun Tan and Tessa Oh from The Business Times for spotlighting Gaven's perspectives. #WRISE #WealthManagement #TheBusinesstimes #SingleFamilyOffice 

As a small city-state the need to attract capital is of vital importance to #singapore. The Singapore #familyoffice industry is booming - this announcement provides families with the certainty they seek. However as noted in this #businesstimes articles, with legislation comes a #compliance burden for each family to manage. #csttax #internationaltax #internationalbusiness #expatland

THE upcoming roll-out of Singapore’s single-family office (SFO) framework will likely provide ultra-wealthy families with greater clarity, and attract those seeking certainty and transparency, market observers said. But the framework may not appeal to wealthy families who want simplicity and the best tax incentives, they noted. On Nov 6, the Monetary Authority of Singapore (MAS) responded to feedback on its proposed framework for Singapore’s SFOs, with details on the roll-out likely to be announced in due course.

【THE 2024-25 BUDGET : Family offices have emerged as a significant development initiative for the future】   Mr. Paul Chan GBM, GBS MH JP, Financial Secretary for the Hong Kong delivered his 2024-25 budget on last month which key details around the development of Family Office.   In a nutshell, in order to attract global family offices and asset owners to Hong Kong, the HKSAR has implemented several measures aimed at attracting more capital and driving ancillary economic activities. These measures include providing tax concessions for qualifying transactions of family-owned investment holding vehicles managed by single family offices in Hong Kong and streamlining the suitability assessment process for dealing with sophisticated professional investors. But what does this entail?   The preferential tax regimes for related funds, single family offices, and carried interest, including reviewing the scope of the tax concession regimes, expanding the range of qualifying transactions can provide greater flexibility to attract more funds to create more professional family offices and engage greater opportunities for professionals such as accountants, lawyers, and business strategists to be part of this space.   Further to that announcement comes the second Wealth for Good Summit, scheduled for 24 March alongside Art Basel Hong Kong. The theme panels include “Wealth for Tech”, “Wealth for Art”, “Wealth for Green” and “Wealth for Philanthropy” to reflect on the multifaceted considerations for setting up a family office in Hong Kong.   Private Invitation for Wealth for Good has already began distributing. We are looking forward to seeing what comes out of the Summit!   #CUHK #CUHKCFB #FamilyBusiness #FamilyOffice

To underscore its commitment to developing the family office sector, the Hong Kong government unveiled a new family office statement in 2023, since then, good momentum has been built in the industry. Hong Kong has gradually established a highly competitive ecosystem in the family office sector. In addition, the Hong Kong government has also introduced a number of tax incentive specifically for the fund industry.   To explore the latest developments in this space, KPMG is co-hosting an event with Invest Hong Kong and COPFA in Shanghai. We have invited the Global Head of Invest Hong Kong and various experts in KPMG to discuss the hot topics in relation to policies and recent developments of the Family office and fund industry in Hong Kong.   #FamilyOffice #HongKong #FundIndustry #taxincentives

Does Singapore’s trustworthy status help the growth of Single-Family Offices? In October, Gan Kim Yong, Deputy Prime Minister of Singapore and chairman of the Monetary Authority of Singapore (MAS), said that the city-state is “a trusted and well-regarded centre for asset and wealth management.” A significant factor behind Singapore’s rise as a hub for SFOs is its attractive tax incentives, drawing wealthy families from around the globe. The government’s focused approach, primarily through MAS, solidifies Singapore’s reputation in wealth management. With a strong economy and expanding regional wealth, Singapore naturally supports SFO growth by offering a robust environment for long-term planning and preservation. Additionally, Singapore’s strategic location and reputation for stability make it a trusted choice for families seeking a secure base for managing their wealth. I want your thoughts on whether you’re considering setting up a family office or expanding your wealth management strategy. Do you see these trends having an impact on your financial future?

Want to know more about setting up a family office in #Singapore? Our course offers a comprehensive guide to navigating Singapore's financial landscape. Learn key strategies for wealth preservation, tax efficiency, and regulatory compliance tailored for family offices. Enroll now: https://loom.ly/XwRnOB8 #HedgeFunds #PrivateEquity #FamilyOffice #ipi #learnfromexperts

Competition increases for family offices across Asia. #castlefamilyoffice #singapore #bloomberg Over the past five years, the family office industry in Asia is seeing rising competition. As one of Asia’s top financial centers, Hong Kong has long been known as a family office hub in the region. But it began to lose luster in 2020 when China introduced the national security law for Hong Kong, criminalizing any act of secession, subversion, terrorism and collusion with foreign or external forces. In 2021, as part of its efforts to promote its “common prosperity” concept, Beijing implemented large scale regulations and cracked down on perceived excesses of private industries, most prominently in the technology and property sectors. It also passed new anti-monopoly rules, including one that stopped companies from using algorithms to make users spend more or to disrupt social orders. Many Chinese technology companies, including Alibaba Group, Tencent Holdings and Baidu Inc, were fined for breaking the new laws. Meanwhile, the number of family offices in Singapore has grown from 400 in 2000 to 1,650 in August 2024. Tax incentives and the introduction of the variable capital company (VCC) structure in the city state in 2019 were among the factors that drove the increase. Ultra-rich individuals that have set up family offices in Singapore over the past three years include Ray Dalio, founder of hedge fund management firm Bridgewater Associates, Google co-founder Sergey Brin, and Shu Ping, the Chinese billionaire behind Haidilao International Holdings, the world’s biggest chain of hotpot restaurants. In 2023, Hong Kong upped its ante, and introduced new measures to attract single family offices. In May, the Hong Kong Legislative Council passed a law for a concessionary tax regime for single family offices, exempting investment profits from the profit tax when specific conditions are met. A month later, InvestHK, a government department responsible for foreign direct investments, launched a Network of Family Office Service Providers to create a supportive ecosystem for family offices globally looking to establish or expand their presence in Hong Kong. Emergence of new players. This year, two other Southeast Asian countries were seen to be trying to replicate Hong Kong and Singapore’s wealth management success, by introducing measures to woo single family offices. In July, Luhut Pandjaitan, Indonesia’s chief investment minister, said the country is in the midst of setting up guidelines and regulation frameworks for family offices in Indonesia, with the details expected to be announced this October. Meanwhile, just last month in September, Malaysia announced it will be offering a zero tax rate for single family offices, as part of the government’s plan to become a more “dynamic player on the global financial stage”. https://lnkd.in/e49svbWk

The Hong Kong government could exceed a goal announced in 2022 to attract more than 200 large family offices to set up in the city by 2025 with the help of tax incentives for single family offices introduced in 2023 and capital investment entrant scheme (#CIES) launched in March. Invest Hong Kong -- a government agency responsible for foreign investment -- helped 64 family offices set up or expand from June 2021 through end-March. Another 136 family offices were in the pipeline as of end-March, mostly from mainland China, followed by Southeast Asia, Europe and Middle East. Hong Kong's tax incentives for single family offices and capital investment entrant schemes (CIES) could attract ultra-high-net-worth individuals to the city. Singapore has comparatively more stringent requirements on local business spending and the number of investment professionals required for larger-sized family offices to be eligible for tax concessions. More analysis available on BI <GO> #familyoffice #hongkong #assetwealth #Bloomberg Bloomberg Intelligence