“You’d be expecting foreign family offices who want to set up bases in Singapore to have that kind of commitment to invest in Singapore talent and local investments,” she said, adding that it will open up new fundraising avenues for small companies and startups. She said the requirement for family offices to invest a minimum sum in Singapore is an encouraging move for the local financial industry and will help the MAS to understand better the investment strategy of these entities and the assets they have invested in. To meet demand, the Wealth Management Institute in Singapore has set up training for mid-career professionals looking to switch to investment and wealth management, said Sharon Sim, board advisor at Aries Investment Management, a local multi-family office. He said the measures on minimum business spending and hirings will help stimulate the Singapore economy and create new IP jobs and raise the level of professionalism in the industry.īut he noted that Singapore is short of qualified IPs for these roles because many already work for private banks and established financial institutions in the city. “Singapore fund managers are celebrating the requirement of minimum local investments – which includes funds managed by Singapore-licensed fund managers – as the rule will likely culminate in attracting more funds from family offices for the Singapore fund managers to manage,” he said. The new minimum requirement for local investment is likely to make for a more vibrant Singapore asset management industry, said Ryan Lin, director at Singapore’s Bayfront Law, which advises foreign family office applicants. In addition, new family offices must now invest at least 10% of their AUM or S$10 million, whichever is lower, in local investments such as listed equities on the Singapore stock exchange, qualifying debt securities, funds distributed by Singapore-licensed fund managers, and private equity investments into non-listed local companies, including start-ups. The minimum for Section 13U has gone up to S$500,000 from S$200,000, while the amount for Section 13O remains at S$200,000. New family offices must also now comply with minimum total business spending rules subject to tiers tied to their AUM size. At least one of the three cannot be a family member, which is a new requirement. Section 13O previously had no minimum AUM or IP hiring requirements.įamily offices applying under Section 13U (formerly known as 13X) – for funds of more than or equal to S$50 million in AUM – must hire at least three IPs. They must also hire at least two IPs, though they may get a one-year grace period to hire the second one. New family offices applying under Section 13O (formerly known as 13R) – for funds of less than $50 million ($36.5 million) in AUM – must now meet a minimum capital requirement of S$10 million ($7.3 million) when they apply, rising to S$20 million within two years. The new rulings, which also set minimum requirements for capital or AUM, local business expenditure, local investments, and the hiring of investment professionals (IP), came into effect on April 18, a week after the Monetary Authority of Singapore (MAS) unveiled them. Tighter tax exemption measures for new family offices in Singapore will likely attract high net worth (HNW) families with significant assets under management (AUM) and have a positive impact on local investment and jobs, industry experts believe.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |