Bank of Singapore has launched the Family Office Catalyst, a new service in Singapore for ultra-high net worth individuals seeking professional wealth management without setting up a dedicated single-family office.

The solution offers advantages typically linked to such structures, including access to specialised investment expertise and eligibility for tax exemptions, subject to conditions under Sections 13O and 13U of the Income Tax Act.

Under the arrangement, the bank is appointed as fund manager of an investment vehicle with at least US$20 million in assets, managed on either a discretionary or advisory basis.

This structure allows clients to benefit from professional management while qualifying for tax incentives, without the administrative costs of running their own office.

The launch comes as family offices in Asia Pacific grapple with rising operational expenses and growing demands for technology platforms, challenges highlighted in a 2024 McKinsey report.

Clients will also have access to the bank’s wealth planning and trust services, and may later transition to a single-family office structure if they choose.

Ultra-high net worth clients, defined as having US$250 million and above in net worth, remain a strategic focus for Bank of Singapore, with assets under management in this segment recording double-digit growth in 2024.

Lim Leong Guan, Global Head of Financial Intermediaries, Family Office and Wealth Advisory at Bank of Singapore, said,

“Our Family Office Catalyst solution addresses these issues by allowing these individuals to tap into the deep expertise of our portfolio management teams to manage their assets and still qualify for tax incentives, supplemented by the Bank’s comprehensive wealth management ecosystem.

We believe this presents a cost-efficient and holistic alternative solution to setting up their own SFOs.”

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