Asia just beginning its family office journey
- Kelvin Tan
- Nov 7, 2023
- 1 min read
Traditionally favoring fast trades and IPOs, Asian investors are now placing greater emphasis on smooth wealth transition within families.
The evolving needs and increasing globalisation of the Asian elite are prompting significant changes in the region's private banks and multi-family offices (MFOs), spurred by high-profile succession and inheritance conflicts.
As first-generation entrepreneurs continue to control most Asian wealth, their family needs have become increasingly complex. Private banks and MFOs in Asia are transitioning from purely selling products to offering broader services such as succession planning and tax advisory, and providing better access to global markets.
LH Koh of UBS highlights the increased urgency for succession planning among wealthy families, accelerated by the COVID-19 pandemic: "The past few years have underpinned the importance of preparing for the unexpected."
In response to this trend, countries like Singapore and Hong Kong aim to create favorable regulatory environments and tax incentives to attract family offices. These regional hubs facilitate networking with other FOs for ease of investment, risk management, and succession planning.
Singapore's Variable Capital Company (VCC) structure, for example, provides flexibility in fund management, allowing multiple sub-funds under a single umbrella, and offering tax exemptions on certain incomes.
Article by Elisa Battaglia Trovato for FT Professional Wealth Management. Read more here or in the PDF below.
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