MAS Proposes Harmonised Class Exemption For Single Family Offices

The Monetary Authority of Singapore ("MAS") has on 31 July 2023 published a consultation paper proposing a new class exemption for single family offices ("SFOs") from the requirement to be licensed for fund management under the Securities and Futures Act 2001 ("SFA"). The requirements under this class exemption will help to facilitate the supervision of SFOs in Singapore and address any money laundering risks arising from their activities.

1. Introduction

Given the increase in SFOs being set up in Singapore due to its status as an international financial hub, MAS notes that SFOs may pose money laundering risks similar to those of high net-worth or private banking clients, and as such, has proposed to harmonise the criteria for SFOs to be exempt from licensing under the SFA, and to introduce new notification and reporting requirements to better monitor the activities of SFOs in Singapore.