Wealth Planning
Singapore’s financial and economic stability, coupled with its well-organised and well-governed jurisdiction, are key justifications for setting up family offices here.
Responsibilities and scope of services of the family office
The initial intention behind the establishment of a family office is often to institutionalize the management of the family’s financial affairs. Over time, in order to meet the changing needs of the family, the scope of responsibilities of the family office can be expanded to include a range of other services, which can be roughly divided into the following categories
Investment and asset management
Investment Strategy Asset allocation and management Bench-marking and review
Investment Strategy
Asset allocation and management
Benchmark management and review
Next generation plan
Succession planning Liquidity planning Family governance Family education
Succession Planning
Liquidity planning
family governance
Charities
Goal setting, due diligence, execution, impact assessment
goal setting
Due diligence
execute
Administrative services
Protocol, Integration and Accounting, Legal and Taxation
honor guard
Integration and Accounting
Law and Taxation
Classification of Family Offices
Single Family Office (SFO)
A single family manages its own assets, which are deposited into the family fund. The fund investment is selected by the client themselves or by a reference financial planner; A legal entity established by a wealthy family for wealth management, wealth planning, and providing other services to members of the family.
Singapore SFO can exempt RFMC/LFCM fund licenses
Multi family office (MFO)
MFO is an FO that serves multiple families and has three main sources: the first type is derived from SFO's acceptance of other family clients, the second type is established by private banks to better serve large clients, and the third type is founded by professionals.
Singapore MFO requires RFMC/LFCM fund license, similar to External Asset Management (EAM).
With government tax exemption incentives for offshore and onshore funds managed by FOs, almost all capital or investment gains are not taxed.
- Onshore Fund Tax Incentive Scheme (13O);
- Offshore Fund Tax Incentive Scheme (13D); and
- Enhanced-Tier Fund Tax Incentive Scheme(13U);
- In light of the above tax incentives, coupled with Singapore's sound financial system, firm adherence to the rule of law, stable political environment and economy, as well as high-quality living standards, Singapore has been established as the preferred choice for many family offices
Preparation
Implementation
Follow-up
- Find legal professionals who are suitable for the client's family
- Plan and build the architecture that is suited to incorporating the practical needs of the family
- Analyse the architecture using home and investment tools
- Legal and tax experts draft legal documents, obtain legal/tax advice and provide tax planning solutions
- Work with a team of family advisers
- Annual audit and reporting of service and fund entities
- Provide relevant policy updates and reports
Design Phase
- Colorless and suitable legal professionals according to the actual needs of the client's family
- The actual needs of integrating families in architecture construction
- Analyze the registration location of the architecture and the form of investment tools
Implementation Phase
- Legal and tax experts draft legal documents, obtain legal/tax opinions, and provide tax planning solutions
- Collaborate with the family advisory team
Follow up
- Annual audit and reporting of service entities and fund entities
- Provide reporting services for policy updates
Allocation of assets
Overseas allocation of assets
INTERKEY ADVISORY has deep experience in tax (incl. CRS) and legal regulations and risks in company expansion, immigration, residency, and cross-border wealth planning. We work with licensed partners to provide a seamless, one-stop consultancy solution customised for our clients.
CRS
INTERKEY ADVISORY delves into taxation regulations in different countries/regions and leverages tax treaties and financial instruments to help high-net-worth individuals achieve overall tax efficiency.
Selection of reliable investment channel services
We carefully advise clients on reliable investment channels (such as fixed income funds, preschool education, new energy, growth corporate bonds, consumer finance, movies, etc.) based on their risk tolerance and preferences, so that our clients have more options to grow their assets.
Infinite Growth Income Fund (IGIF)
The Infinite Growth Income Fund (IGIF) is a fixed-income fund launched in Singapore on 1st April 2020. It primarily deploys a private credit strategy. It is a sub-fund under the Nech VCC umbrella fund, which is in turn structured as a Variable Capital Company (VCC). The IGIF is managed by Nech Capital Pte Ltd, a Singapore Registered Fund Management Company (RFMC).
The IGIF is only for Accredited Investors (AIs) or Institutional Investors. Subscription is by invitation only and is exclusive to AIs who have passed the pre-qualification requirements.
To qualify as an AI, you must fulfil any one of the following 3 conditions:
Net personal assets exceeded S$2 million (or its equivalent in a foreign currency) in value. Live in Property contributes a maximum of $1 million.
Income in the preceding 12 months was not less than S$300,000 (or its equivalent in a foreign currency)
Investment/Financial assets (bank deposits, bonds, shares) of at least $1 million or more
Investors in a Class Equivalent to Accredited Investors. An investor in an equivalent class under the laws of the country or territory in which the offer or invitation is made.
For details on the requirements and application procedures for accreditation bodies, please visit the MAS website
Please note that any invitation related to the subscription of IGIF shares can only be made to qualified accredited institutions that have completed and signed the subscription form, or to institutional investors in other ways.
For more details on the type/status of Nech Capital Pte Ltd license, please visit the MAS website
If you would like to learn more about the fund strategy adopted by IGIF and inquire about the eligibility application process, please contact us as soon as possible. Thank you!
