Setting Up a Singapore-Based Family Office: Structures, Banking, and Governance

A practical guide to establishing a Singapore-based family office: structure choices, banking set-up, investment policy, and long-term governance.

Singapore has become a preferred base for single-family offices (SFOs). Beyond tax and lifestyle, families value banking depth, legal certainty, and regional deal flow.

1) Structure choices and why they matter

• SFO entity + investment fund (e.g., company or corporate fund structure such as VCC): separates management from assets, simplifies bank onboarding and custody.
• Trust & holdco layers: used for succession, asset protection, and booking flexibility.

2) Bank integration

• Operating accounts: pay expenses, salaries, vendor fees.
• Custody accounts: hold listed assets and funds, enable DPM/advisory.
• Credit lines: Lombard facilities for liquidity; property or private-asset finance when needed.

3) Portfolio governance the street respects

• Family charter: purpose, roles, conflict-of-interest policy.
• Investment Policy Statement (IPS): risk budget, rebalancing rules, ESG stance, exclusion lists.
• Reporting cadence: monthly flash, quarterly full report, annual strategy review.

4) Talent & partners

• Core team: CIO/portfolio analyst/ops-controller (can be lean).
• External: private banks, independent asset managers (IAM/EFM), lawyers, tax advisors, fund administrators, auditors.

5) Execution shortcuts that save time

• Start with a lean legal stack, standard service agreements, and a basic IPS; iterate after the first 6–12 months.
• Use a single consolidated performance report across banks; avoid spreadsheet chaos.

Singapore family office, SFO setup, fund structure, VCC, banking relationship, governance framework

Written by: BankOpen Singapore Editorial Team
The BankOpen Singapore Editorial Team consists of financial analysts, banking industry professionals, and experienced writers. We are dedicated to providing accurate, up-to-date, and practical insights to help readers navigate Singapore’s banking landscape and make informed financial decisions.