Singapore has overhauled the way Single-Family Offices (SFO) operate, moving away from a slow, case-by-case approval process to a streamlined "Class Exemption" regime that came into force on 15 June 2026, to counter the efforts from other Asian countries that are introducing favourable schemes for Family Offices. Here, we would like to provide a clear breakdown of what changed, what stayed the same, and the deadlines that matter.
The Big Shift: From Individual Approval to Automatic Exemption
The Monetary Authority of Singapore (MAS) has replaced the old system, where each Single Family Office had to wait months for an individual licensing exemption, with a unified Class Exemption. If your Family Office meets three straightforward conditions, you qualify automatically, with no waiting period.
The three rules are:
- Notify MAS when you begin operations.
- Bank with a MAS-licensed institution to ensure anti-money-laundering oversight.
- File an annual report disclosing your total assets under management and your banking partner.
That's it. No lengthy application. No case-by-case review.
New Flexibility: Rewarding Your Team
To help the local Family Offices compete for top-tier global talent, MAS has introduced two meaningful structural changes:
The 10% Equity Rule: Key non-family professionals (including executive directors, CEOs, CFOs, and investment professionals) may now hold up to 10% ownership in the SFO itself as a performance incentive. Separately, the personal assets of these key employees that are managed by the SFO are capped at 10% of the SFO's total AUM — a guardrail to prevent the structure from being used to manage unrelated third-party funds. Previously, the wholly family-owned requirement made equity participation for non-family staff effectively impossible.
The Five-Generation Cap: To qualify as "family capital," all beneficiaries must fall within five generations of a common ancestor. This keeps the definition of family clear and bounded.
What Has Not Changed: Tax Incentive Hiring Requirements
Despite the new framework, the core staffing requirements under Section 13O and Section 13U tax incentive schemes remain exactly as they were.
| Scheme | Fund Size | Minimum Headcount |
|---|---|---|
| Section 13O | Standard | At least 2 investment professionals (one may be a family member; one-year grace period to hire the second) |
| Section 13U | S$50M+ | At least 3 investment professionals (at least one must be a non-family professional) |
In both cases, investment professionals must be tax residents of Singapore and hold relevant financial qualifications or equivalent experience, such as portfolio managers or analysts.
The Deadline That Matters
The new framework took effect on 15 June 2026. If your SFO was already operating before that date, you do not need to act immediately. You have until 15 June 2027 to:
- Submit your official notification to MAS (within 14 days of your commencement date, for new offices)
- Confirm your banking arrangements meet the new requirements
- Ensure your staffing is aligned with the applicable tax incentive scheme
New Family Offices starting after 15 June 2026 must comply from day one.
What This Means for Your People Strategy
Here is our advice to Family Offices navigating this moment.
- Start hiring before you need the headcount. The streamlined entry process will bring more SFOs to market faster, and all of them will be competing for the same finite pool of Singapore tax-resident investment professionals. Brief your search partner before your structure is finalised, not after.
- Design your equity participation framework before your first offer goes out. The 10% rule is a genuine shift in how SFOs can compete for talent, but it only works if structured properly, which roles qualify, how the stake is valued and vested, and what happens at exit. Equity that feels nominal to a candidate does more harm than none at all.
Our Singapore team works very closely with families in the region: from role design and search mandates to compensation benchmarking and equity structuring. If the new framework is prompting you to review your team or your approach to hiring, we are happy to start with a conversation.
This is a genuinely positive development for Singapore's Family Office ecosystem. The new framework reduces administrative friction, adds real flexibility for talent retention, and maintains the compliance standards that underpin Singapore's reputation as a trusted wealth hub.