Pełna transkrypcja odcinka The Evolving Single Family Office Landscape in Singapore

over to the next generation. 00:05:47.120 --> 00:05:51.839 So, what is your observation on the Singapore family office market? 00:05:52.399 --> 00:05:54.800 Do you see more professionalism? 00:05:55.519 --> 00:05:56.800 Yes, definitely. 00:05:57.040 --> 00:06:06.639 So just to set some context to this, prior to the COVID times, or at least during the COVID times, there was a surge in the number of family offices in Singapore. 00:06:06.800 --> 00:06:10.160 I think it was fivefold or something up to 2024. 00:06:10.480 --> 00:06:20.319 At that point in time, the focus was a lot about setting up in Singapore, coming to Singapore, the tax incentives in Singapore, and Singapore's general attractiveness as a financial hub. 00:06:20.560 --> 00:06:31.600 But now that families are rooted in Singapore and they have been in Singapore for a while, they are looking at a longer-term solution to think about okay, how do I pass it on to my next generation? 00:06:31.759 --> 00:06:37.600 And how do I put into place structures to ensure that my legacy continues? 00:06:37.920 --> 00:06:45.279 So this is where the families have been focused on and where we see the market for family offices continue to develop. 00:06:45.600 --> 00:06:46.639 What about Yu Ying? 00:06:46.800 --> 00:06:50.000 What are the changes that you see in the family offices? 00:06:50.399 --> 00:07:00.560 I think as the wealth grows across jurisdictions and the generations and the level of complexities that the families are dealing with also increase. 00:07:00.879 --> 00:07:07.600 They're dealing with multiple trusts, multiple entities, multiple family branches, relationship with different banks. 00:07:07.759 --> 00:07:12.319 They are also managing their operating businesses alongside their investment portfolio. 00:07:12.560 --> 00:07:19.360 So as a result, what used to be a simpler setup becomes much more harder to manage over time. 00:07:19.519 --> 00:07:26.000 And don't forget, I mentioned before, the need to diversify across different jurisdictions and different asset classes. 00:07:26.160 --> 00:07:29.519 So I actually echo what Chungwai shared earlier. 00:07:29.680 --> 00:07:39.040 Now, families increasingly require a clearer governance structures and oversight and better visibility over their assets and structures. 00:07:39.279 --> 00:07:49.040 Ultimately, it's about to ensure the structure can be operated smoothly across generations, regardless of who is involved. 00:07:49.279 --> 00:07:53.759 In our previous episodes, we actually covered the high-profile AML cases. 00:07:53.920 --> 00:07:59.199 This has caused family officers to focus on governance, compliance, and also operational substance. 00:07:59.360 --> 00:08:04.800 So, how has this changed the behavior or environment for family officers in Singapore? 00:08:05.519 --> 00:08:11.600 Based on our observations, Singapore remains very supportive of the family office space. 00:08:11.839 --> 00:08:19.360 But certainly the expectations around

governance, transparency, and the operational substance has clearly increased. 00:08:19.600 --> 00:08:36.240 As you mentioned before, the major ML cases in 2025, where MAS imposed penalties amounting to 27.5 million in total, over nine financial institutions for a breach of MAS, ML and CFT requirements. 00:08:36.399 --> 00:08:44.480 We are seeing more rigorous expectations around source-of-wealth collaboration, customer due diligence, and transactions monitoring. 00:08:44.720 --> 00:08:49.919 And operationally, we also see the regulator are more hands-on. 00:08:50.399 --> 00:08:57.519 They are asking for supporting documents and additional clarifications for the filings that we submit. 00:08:57.679 --> 00:09:01.440 So the focus today is not just about putting in place the right structure. 00:09:01.679 --> 00:09:10.720 The regulator also wants to see that there is evidence the structure is being administered and managed properly in line with its stated purpose. 00:09:10.960 --> 00:09:12.159 So, how about Chungwai? 00:09:12.639 --> 00:09:15.440 Do you see the similar trend over at your end? 00:09:16.000 --> 00:09:31.200 Yeah, we definitely see the regulators and a general infrastructure in Singapore ecosystem taking a more robust approach towards these checks and balances, making sure AML is done properly, making sure your KYC is done properly. 00:09:31.279 --> 00:09:40.559 And I think generally that's a good thing because to the families who are already in Singapore, it gives them the confidence that Singapore is taking this seriously. 00:09:40.799 --> 00:09:52.159 They want to make sure that they maintain the reputation as a reliable, credible financial hub, and they can be assured that the regulators are actively engaging the space. 00:09:52.639 --> 00:10:09.120 But beyond the families, it also gives third parties the confidence that the funds which are being managed from Singapore are documented properly, and these are legitimate family officers who are really interested in making the investments that they are interested in. 00:10:09.440 --> 00:10:18.080 So overall, it's definitely a positive development that we have seen come from the regulators and the general overall ecosystem in Singapore. 00:10:18.399 --> 00:10:24.000 As family officers become more sophisticated, there are more operational risks. 00:10:24.159 --> 00:10:27.360 So what are the risks that you see today, Chun Hai? 00:10:28.000 --> 00:10:35.600 So, as I mentioned, the families have looked more towards governance, operational resilience. 00:10:35.840 --> 00:10:49.519 And these are their response in putting into place governance policies or continuity policies are a reflection of the risk that they see and the risk that we see generally in the market. 00:10:49.679 --> 00:11:00.240 So the same risks apply, which is to ensure governance and succession for the next generation, to make sure that the families are not relying just on one person making the decision. 00:11:00.879 --> 00:11:08.240 The families have proper documented processes to know who is involved in making each decision that is required. 00:11:08.480 --> 00:11:20.320 And that there's also proper oversight, and there's a responsibility taken by different family members in seeing through initiatives that are being pushed forward by the families. 00:11:20.559 --> 00:11:32.799 So these, because of this impetus that the families have, I think these are quite reflective of the risks that are involved in the general space that we have seen family officers operate towards. 00:11:33.279 --> 00:11:39.039 Alright, recently we've seen in Singapore family disputes regarding arrangements and also ownership disagreements. 00:11:39.200 --> 00:11:42.159 So, Chunwai, what lessons do you take from these cases? 00:11:42.480 --> 00:11:50.559 I think there's a need to have good governance, risk management, and oversight put in place. 00:11:50.879 --> 00:12:02.879 So family offices tend to operate on quite an informal basis based on trust among family members, sometimes even amongst the employees that the family officers employ. 00:12:03.279 --> 00:12:14.720 But because a lot of these things are unspoken, unsaid rules, there are certain lines which can be crossed or certain blurred lines which is difficult for people to follow. 00:12:14.879 --> 00:12:16.320 And this could lead to disputes. 00:12:16.480 --> 00:12:26.960 So for example, I mean it's not unheard of for disputes to arise in the context of family offices or governance of companies which families own. 00:12:27.200 --> 00:12:43.600 For instance, in I think in 2025, Straits Times actually published an article talking about a high-net worth individual, businessman, who was suing his former employees in Singapore over certain relating to certain investments made from the Singapore companies. 00:12:43.759 --> 00:12:46.480 So these disputes are certainly not far-fetched. 00:12:46.639 --> 00:13:06.559 And because of that, there's a need for these families to consider, okay, what kind of processes, checks, and balances I can put into place, or who can I bring in to help manage this risk that may arise over time where the family office starts growing its business, starts becoming more complicated. 00:13:06.960 --> 00:13:10.559 So, how would you advise family officers to manage this risk? 00:13:11.120 --> 00:13:19.759 One way is to, of course, put into place their governance procedures, but somebody still needs to oversee these governance procedures. 00:13:20.080 --> 00:13:29.279 Sometimes families might find it useful to engage a trusted group of professionals to assist with them, coming up with these policies to put in place. 00:13:29.440 --> 00:13:39.039 Sometimes families might also engage with certain structures which by their nature have third-party independent persons looking at it. 00:13:39.200 --> 00:13:44.320 So, one possible structure that families have been considering always is the use of a trust. 00:13:44.480 -->

00:14:05.840 I mean, in the use of a trust, you get a licensed third-party company who comes in and administers the trust structure, and this gives certain oversight over the family's assets and gives the families confidence that there is an independent party who is there to look after. 00:14:07.120 --> 00:14:16.399 So, I mean, as a service provider, a lot of times the clients ask, you know, should I set up a family office, should I, or should I set up a trust? 00:14:16.720 --> 00:14:21.039 Quite interested to hear from you as a legal advisor who advise a lot of handle families. 00:14:21.519 --> 00:14:24.879 How do trust and family office work together? 00:14:25.200 --> 00:14:30.159 Okay, so the trust and family office are structures that they can complement each other. 00:14:30.240 --> 00:14:31.120 They are not the same. 00:14:31.200 --> 00:14:44.960 So a trust really is a legal arrangement where the family places certain assets with someone they trust, a licensed trust company, to help them look after and administer, manage those assets. 00:14:45.200 --> 00:14:49.919 But a family office, on the other hand, might serve a bigger role, a bigger purpose. 00:14:50.159 --> 00:14:57.279 The family office could provide concierge services to the family, it can provide investment services to the family's funds. 00:14:57.440 --> 00:15:11.600 The family office can also be a tool where the families gather other family members to be involved in some sort of decision making along the way relating either to investments, maybe even philanthropy. 00:15:12.080 --> 00:15:18.320 So it is two different structures serving two different purposes, but often very complementary. 00:15:19.279 --> 00:15:20.639 So back to Ying. 00:15:20.720 --> 00:15:26.320 So today, how does Acentium help family officers operationalize these frameworks? 00:15:26.639 --> 00:15:40.879 So I think one of the biggest challenges that we see that the family has is really bridging the gap between the structure that they put in place and how things actually run on a day-to-day basis. 00:15:41.120 --> 00:15:46.240 Now, in reality, the families are dealing with a few different parties. 00:15:46.399 --> 00:15:53.120 So they're dealing with the trustee, the corporate administrator, the banks, and investment managers. 00:15:53.279 --> 00:15:59.519 Well, each of them are good at what they do, but things can be a bit fragmented from an operational standpoint. 00:15:59.759 --> 00:16:04.320 Now, for example, things like collections of KYC documents. 00:16:04.480 --> 00:16:11.279 Families are often asked for the same set of documents by different providers, and it becomes quite repetitive. 00:16:11.440 --> 00:16:19.840 And over time there are also questions around how this information are being handled and managed across different organizations. 00:16:20.320 --> 00:16:25.600 Because certainly confidentiality and data securities are important to the family. 00:16:25.840 --> 00:16:41.919 Now, there is also coordination around administrations and reporting, making sure that the trustee and the corporate administrator are aligned and the documents are consistent and the decisions are properly documented and reported. 00:16:42.080 --> 00:16:50.399 And because these sound straightforward, but in practice, they could be quite an effort when multiple parties are involved. 00:16:50.639 --> 00:16:53.200 Now, lastly, is on the investment side. 00:16:53.360 --> 00:17:03.279 Now we often hear the family says that they don't have a single consolidated view because the information sits across banks or investment managers. 00:17:03.519 --> 00:17:14.400 So what we often see is the structure itself is usually well thought through at the beginning, but the day-to-day running becomes complex as you grow. 00:17:14.640 --> 00:17:27.119 Now at Essentium Private, we have structured our offerings to provide solutions across a wide spectrum from trust or equivalent holding structures to family office services. 00:17:27.279 --> 00:17:41.119 And the goal is really to bring things together to facilitate better coordinations among different parties, provide clearer visibility, and also a more practical way of managing everything over time. 00:17:41.359 --> 00:17:51.440 Now I would also like to highlight that we are ISO 2700135, which is an international recognized standard for information security. 00:17:51.680 --> 00:18:02.160 In a simple term, it means that we have structured the processes and controls in place on how the client's data is being handled, stored, and also protected. 00:18:02.400 --> 00:18:09.599 Because in today's environment, this level of disciplines and securities has become increasingly important for the families. 00:18:10.000 --> 00:18:11.039 Alright, thank you. 00:18:11.200 --> 00:18:16.880 So as the landscape for family officers mature, what other trends do you see, Chunwai? 00:18:17.519 --> 00:18:23.200 We see families asking more about philanthropy and charitable giving. 00:18:23.680 --> 00:18:38.160 So this is a maturing of the market, and they're seeing where they can also continue their legacy, continue involving the second generation sometimes in these efforts, and also to give back to society. 00:18:38.559 --> 00:18:46.720 This is also a trend which I think the government has recognized with the recognition of certain philanthropy schemes involving family offices. 00:18:46.960 --> 00:18:51.200 This is somewhere we clearly see the market moving forward in the future. 00:18:51.920 --> 00:18:57.759 Yeah, how do you advise the service provider to be prepared for this trend? 00:18:58.079 --> 00:19:03.440 Okay, because philanthropy is an area where certain families might need guidance. 00:19:03.599 --> 00:19:08.559 So with charitable giving philanthropy, you will need your governance policies to be in place. 00:19:08.799 --> 00:19:12.000 Somebody needs to advise the families on the governance policies. 00:19:12.160 --> 00:19:15.359 Somebody needs to

help them oversee these policies. 00:19:15.519 --> 00:19:18.480 And that's where the service providers can come in and value add. 00:19:18.799 --> 00:19:25.200 Because the service providers are the professionals, they will have the network of people who can support the families. 00:19:25.359 --> 00:19:30.880 They also have the network of people who might need the needs from the charitable and philanthropic giving. 00:19:30.960 --> 00:19:38.240 So this is where the service provider can value add directly to the family, but also in connecting and building these networks. 00:19:38.640 --> 00:19:39.519 Thank you. 00:19:40.000 --> 00:19:44.960 Yeah, so a lot of discussion is also about the next generation. 00:19:45.200 --> 00:19:47.920 How do they go about preparing the next generation? 00:19:48.640 --> 00:19:51.920 So the most successful families start early. 00:19:52.160 --> 00:20:05.279 They start by giving the younger generation participation in areas that they are interested in while also building guidance and oversight so that they have a safe space to work within. 00:20:05.519 --> 00:20:11.440 But the key is to enable them and to let them build the capabilities up over time. 00:20:11.680 --> 00:20:13.200 Another challenge, of course, is talent. 00:20:13.279 --> 00:20:16.960 So how do these family officers manage or attract talent? 00:20:18.079 --> 00:20:22.319 I would say talent shortage is definitely a common theme. 00:20:22.559 --> 00:20:35.119 And with the section 13.0 and 13U requirements where family officers are expected to recruit non-family members, professionals, it doesn't help or make things easier. 00:20:35.359 --> 00:20:43.759 It's not just about hiring, it's also about retaining the right people and building a sustainable team over time. 00:20:44.079 --> 00:20:48.400 I can't see an easy way to overcome that challenge. 00:20:48.559 --> 00:20:56.079 That's the reason why a lot of family officers are outsourcing their work and partnering with a provider like us. 00:20:56.319 --> 00:21:10.559 This gives them an opportunity to access institutional governance capabilities and also experience professionals without having to build everything entirely in-house from day one. 00:21:11.440 --> 00:21:12.160 Thank you. 00:21:12.400 --> 00:21:13.680 So last question. 00:21:23.279 --> 00:21:28.640 So I I think we'll continue to see greater sophistication in the family offices. 00:21:29.359 --> 00:21:45.920 For example, in terms of governance and oversight policies, we will also see succession coming to a fall where the generation that sets up a family office is now considering how to involve and pass on the reins to the next generation. 00:21:46.559 --> 00:21:51.519 For me, I think the changes will be driven by technology. 00:21:52.000 --> 00:21:59.519 Because with the continued development of AI, we are seeing shifts across many aspects of the family office landscape. 00:22:00.160 --> 00:22:10.480 Just, for example, before the iPhone was being introduced, your life is quite fermented, and now your life is being managed out of a phone. 00:22:10.720 --> 00:22:15.279 So, from a family's perspective, the expectations are also evolving. 00:22:15.359 --> 00:22:20.319 Now, there is a growing trend for better technology-enabled oversight. 00:22:20.559 --> 00:22:30.880 They are expecting consolidated visibility over different structures, over different assets, and also an institutional quality reporting. 00:22:31.200 --> 00:22:53.839 As a service provider like ourselves, if we leverage technology effectively, we can streamline the more administrative aspect of the work and focus on providing high-value added services, such as implementing and monitoring governance oversight, advisory in supporting families in making complex decisions over the time. 00:22:54.160 --> 00:22:56.319 Alright, thank you, Ying, and also thank you, Chunwai. 00:22:56.559 --> 00:22:58.799 For those watching us, thank you for watching us live. 00:22:59.039 --> 00:23:03.039 There are a few questions that came in, so we'll quickly go through these questions now. 00:23:03.279 --> 00:23:06.240 So the first question, I believe, is for Chun Huai, is from Jonathan. 00:23:06.480 --> 00:23:13.839 So Jonathan asks, how do you involve the next generation without giving them too much control too early? 00:23:14.480 --> 00:23:18.880 One way to involve them is the use of committees. 00:23:19.279 --> 00:23:32.559 So the second generation can take part in certain committees that they are interested in, be it investments or philanthropy or education, where it's a bit more hived off in a specific area. 00:23:32.720 --> 00:23:33.440 They can come up. 00:23:33.599 --> 00:23:48.079 What we have seen being done is for these second generation participants to put forward proposals which are then vetted and approved or discussed with an ultimate decision maker who could be from the first generation. 00:23:48.240 --> 00:23:56.319 So this is one way for the second generation to have a safe space to put forward their ideas and to participate in the family's operations. 00:23:56.640 --> 00:23:56.960 Right. 00:23:57.200 --> 00:23:59.039 The next question we have from Emily. 00:23:59.359 --> 00:24:02.240 So this is a question about what we mentioned is now trust. 00:24:02.400 --> 00:24:07.119 So what is the difference between a trust and a family office, or do you do both? 00:24:07.279 --> 00:24:07.440 Right? 00:24:07.599 --> 00:24:09.519 So I'll ask Ying about this. 00:24:09.920 --> 00:24:14.960 As a service provider, in SNKM, we provide trust and family office services. 00:24:15.119 --> 00:24:22.799 Now, trust is a legal arrangement, and the purpose is mainly to preserve wealth and protect the assets. 00:24:22.960 --> 00:24:34.319 Now, family office, I would say, serve a different function altogether, and family office is where a lot of decisions are being consolidated and made by the people who are recruited by the family office. 00:24:34.480 --> 00:24:41.359 So investment decision could be one of them, and also sometimes it's about managing the family affair as well. 00:24:41.599 --> 00:24:42.319 What do you think? 00:24:42.640 --> 00:24:43.759 Yeah, I agree. 00:24:43.920 --> 00:24:57.279 They are this a trust is a structure where you hive off, you separate some assets to be managed in a certain way by the family and with the oversight of a trusted fiduciary, a trust company. 00:24:57.440 --> 00:25:02.960 The family office can interact with a trust by, for example, investment decisions. 00:25:03.119 --> 00:25:06.640 It can be communicated through an investment advisor in the trust. 00:25:06.880 --> 00:25:12.559 But these actually serve somewhat different purposes, although they certainly complement each other. 00:25:13.200 --> 00:25:15.039 So, last question here from Emily. 00:25:15.200 --> 00:25:18.960 So we talked about key person dependency as a risk. 00:25:19.200 --> 00:25:21.680 What's the first step to fix that? 00:25:22.160 --> 00:25:30.640 From what I've seen, the most important first step to take is to identify a successor or a group of successors. 00:25:30.799 --> 00:25:33.759 That is often the most difficult decision to make. 00:25:34.160 --> 00:25:44.240 And once we have done that, identify a successor, then we can put into place plans to how to train the successor, how to groom the successor to take over the key decision maker. 00:25:44.400 --> 00:25:55.839 And we can put into place governance policies that will ensure that the successor is empowered to make decisions that he or she needs to make in order to drive the family forward. 00:25:56.079 --> 00:25:59.359 So that's where I see the key decision point to be made at. 00:25:59.680 --> 00:26:02.160 I totally agree with what Chingwai just mentions. 00:26:02.480 --> 00:26:19.599 I think we have a framework, and thereafter is implementing the framework and also continuously ensuring the governance oversights are being monitored and having a succession plan put in place for key decision-making roles. 00:26:20.960 --> 00:26:22.079 Right, thank you, Ying. 00:26:22.400 --> 00:26:23.839 Thank you so much for your questions. 00:26:24.000 --> 00:26:26.559 So today's episode is brought to you by Acentium. 00:26:26.720 --> 00:26:36.720 So today's conversation highlights not just creating structures, but preparing the next generation, sustainable governance, and also building institutional resilience. 00:26:36.960 --> 00:26:38.720 So thank you everyone for joining us. 00:26:38.880 --> 00:26:40.799 We hope you find this session valuable.