Family Office for High Net Worth - Isaac Fang CFA, ChFC, CFP
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Family Office for High Net Worth

Family Office for High Net Worth

Family Office - What about.

  • A family office is essentially a business organization established to oversee and handle a family’s financial needs.
  • It is usually separated from the family’s other operational enterprises.
  • The family office focuses on the maximization of financial interests and investments, the reduction of complexity, and the management of the family’s personal affairs.
  • The family office typically manages a portfolio of assets, such as marketable securities, property investment funds, private equity, and other direct investments.

What are some of their broad objectives

These are the broad objectives so there will be more nuanced detailed and specific ones with each individual family office.

  • Tax efficiency and Tax certainty
  • Succession planning and Business continuity
  • Legacy planning, Estate and Wealth transfer
  • Immigration reasons – Global Investment Program for Singapore Permanent Residence status.

What are their key features

Structure and Ownershp

  • Fund owned by a single family unit.
  • Ownership structure can include extended family members
  • No external (3rd party) investors.
  • Investment/strategic decisions to be made in Singapore.

Tax Exemptions

  • Sections 13CA, 13O and 13U tax incentive schemes.
  • Singapore tax exemption for fund’s income from most bankable assets.
  • Excludes income from Singapore properties, cryptocurrencies, physical precious metals etc.

Licensing Exemption

  • Family office can be exempted from holding a CMS (Capital Markets Services) licence for the purposes of managing funds of the related corporation.

Investment Professionals

  • Able to employ family members as investment professionals.
  • Family office can serve as a platform to train successive generations to manage family’s wealth.

Type 13O

  1. MAS (Monetary Authority of Singapore) approval required.
  2. No minimum fund size.
  3. The Fund has to be a Singapore company or a Singapore VCC (Variable Capital Company). ie Singapore residency.
  4. Minimum SGD 200,000 business spending each year.
  5. Use a SG-based fund administrator if the fund is a SG incorporated and tax resident company.
  6. Fund must be managed or advised by a fund management company in Singapore that has or is exempt from a relevant capital markets licence under the SFA or otherwise approved by MAS.
Family Office Type 13R

Type 13U

  1. Approval also required from MAS.
  2. Minimum fund size at the point of application: SGD 50mil.
  3. Fund residency can be anywhere.
  4. The family office employs at least 3 investment professionals (can be family members, roles ie Portfolio Manager, Research analyst, Trader).
  5. Minimum SGD 200,000 local business spending each year.
  6. Uses a SG-based fund administrator if the fund is a SG incorporated and tax resident company.
  7. Fund must be managed or advised by a fund management company in Singapore that has or is exempt from a relevant capital markets licence.
Family Office Type 13X

What are the ongoing requirements

  1. Fund Administration
  2. Accounting
  3. Corporate Tax Compliance
  4. Trust Tax Compliance (where applicable)
  5. Declarations to MAS
  6. Corporate Secretarial Matters
  7. Employee Related Matters
  8. CRS (Common Reportng Standards) / FATCA (Foreign Account Tax Compliance Act) Matters

How PhillipCapital Can Help

PhillipCapital can help assess the current holding structure. Thereby design a new optimal structure or update the existing. PhillipCapital can provide the implementation as well as professional management and administration. PhillipCapital has the necessary licenses to provide assistance to Family Offices.

products n services of PhillipCapital grp
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