Bank of Singapore launches alternative option to single-family offices for ultra-high-net-worth individuals

[SINGAPORE] The Bank of Singapore (BOS) on Monday (Aug 18) announced the launch of a new option for ultra-high-net-worth individuals (UHNWIs) to professionally manage their wealth, as an alternative to single-family offices.

Such individuals have a net worth of US$250 million and above, said the bank.

The Bank of Singapore Family Office Catalyst will grant UHNWIs access to specialised investment expertise and eligibility for tax exemptions, BOS said, noting that such advantages are “traditionally associated” with single-family offices.

UHNWIs “continue to be keen to professionalise the management of their wealth, and many are exploring alternative options to single-family offices”, said Lim Leong Guan, BOS’ global head of financial intermediaries, family office and wealth advisory.

“Concerns around high operating costs and the challenge of attracting suitable investment talent amid intense competition are prompting them to consider more efficient solutions.”

BOS also pointed to a 2024 report by McKinsey, that said rising operational costs and the need to have access to technology-enabled platforms were among the top five challenges for family offices in Asia-Pacific.

UHNWIs using the new solution may qualify for tax exemptions under Sections 13O and 13U of the Income Tax Act 1947, BOS said. These, it noted, are similar to the exemptions available under SFOs.

BOS added that UHNWIs using the solution must have an investment vehicle with at least US$20 million in assets under management; funds in the vehicle will be managed by the bank through either discretionary portfolio management or advisory portfolio management. 

Individuals opting for the new solution “will have the flexibility to transition to an SFO structure” later on, said the bank.