This is an extract from the Family Offices in Asia report featuring a contribution by the Monetary Authority of Singapore (MAS) and Economic Development Board of Singapore (EDB). This is why both organisations believe it is time for you to set up a Family Office in Singapore.
Family Offices across the globe have allocated or have plans to increase their investments in the Asia-Pacific. Singapore, as an international financial hub and a leading wealth management centre in Asia, can play a key role in addressing the increased demand for wealth and investment management services in the Asia Pacific region.
Our strong rule of law, stable and competitive business environment, ease of access to professional services (such as legal and accounting firms) and availability of wealth management and banking professionals, as well as the breadth and depth of investment opportunities that we offer as an international financial centre are some of the factors that Family Offices value in deciding to base themselves in Singapore. There is a mix of Asian families, and an increasing number of non-Asian families coming to Singapore to set up offices to support their investments in the region. The growing global Family Office community here provides an excellent platform for families to exchange insights and explore co-investment opportunities.
As Single Family Offices (SFOs) do not manage third party monies, they are not required to register with or be licensed by the Monetary Authority of Singapore (MAS). In March 2019, MAS and the Singapore Economic Development Board (EDB) jointly established the Family Office Development Team (FODT) to lead and coordinate initiatives that will enhance Singapore’s position as a Family Office hub in Asia through three key thrusts:
(i) Enhancing the operating environment for Family Offices. We look to create an operating environment that is conducive to the establishment of family offices to achieve their varied objectives effectively while operating on our shores. This includes reviewing the applicable regulations, policies and incentive regimes to ensure that our offerings remain relevant to the needs of Family Offices.
(ii) Deepening the capabilities of financial and professional services professionals. We look to ensure that there is a ready pool of professionals capable of understanding and serving the multifaceted needs of Family Offices through continuous training and upskilling. In partnership with industry experts, the Institute of Banking and Finance (IBF) and MAS developed the Family Office Executive Skills Map, the Family Office Management Professional Skills Maps and the Family Office Advisor Skills Maps with the aim of enhancing the specialist skillsets of Family Office professionals and their advisors, to better serve Singapore’s growing Family Office ecosystem. These skills maps serve as a resource for training providers and financial institutions to design Family Office-related training and provide guidance to family offices on the skills and competencies which Family Office professionals should possess.
(iii) Building a strong community of Family Offices. We look to build a strong community amongst the Family Offices here to facilitate experience sharing and the exploration of co-investment opportunities. Building a strong community of Family Offices would also enable the collective deployment of resources toward meaningful causes such as philanthropy, ESG and enterprise financing, and achieve economies of scale in pursuing desirable outcomes. Hence, the Global-Asia
Family Office Circle was established in October 2021 with support from MAS and EDB to foster stronger ties within the family office community and strengthen the partnership between government agencies and the community. It will be a key platform to galvanise the Family Office community towards meaningful endeavours.
Download the full report here. Are you considering a move to the Garden City?