Bank of Singapore (BOS) has unveiled Family Office Catalyst, a new service designed for ultra-high net worth individuals who want the benefits of Singapore’s tax exemptions without the burden of running a single-family office.
Through this structure, BOS will oversee a qualifying investment vehicle eligible under Sections 13O and 13U of Singapore’s tax regime, mirroring arrangements typically used by family offices. The fund requires a minimum size of $20 million and can be managed on either a discretionary or advisory basis, with clients setting their own investment mandate. Portfolios will also draw on BOS’s recently updated strategic asset allocation framework.
In addition to investment management, clients can access estate planning and trust services where needed.
According to Lim Leong Guan, global head of financial intermediaries, family office and wealth advisory at BOS, many wealthy individuals are seeking more professionalised wealth management options but are discouraged by the high costs and staffing challenges of operating a full family office. “Rising expenses and difficulty in attracting qualified investment talent are prompting clients to consider more efficient models,” Lim explained.
The launch comes as competition heats up. In June 2023, DBS Private Bank introduced its Multi-Family Office Foundry, which uses a variable capital company (VCC) structure to set up tailored sub-funds for clients with similar tax advantages.
While Singapore continues to see rapid growth in single-family offices, surpassing 2,000 by the end of 2024, anecdotal reports suggest an increasing number are shutting down due to cost and resource pressures. This shift is reinforced by the Monetary Authority of Singapore’s tighter rules, including higher minimum fund balances and mandatory hiring of at least two investment professionals.
