Hong Kong government responds to concerns about 'fake family offices' and outlines plans to enhance regulation, tax incentives, and talent training for family offices.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SPOTLIGHT ON
FAMILY OFFICES
The Hong Kong government upholds a transparent and internationally compliant environment, rigorously adhering to anti-money laundering and counter-terrorism financing standards.
The government encourages lawful and compliant family offices, mandating a license for those offering asset and wealth management services to non-family members.
Professionals are required to conduct thorough due diligence, identify beneficial owners, and report suspicious activities to law enforcement.
To mitigate tax avoidance, the government has implemented stringent measures for preferential tax regimes, including conditions for family-owned investment holding vehicles ("FIHVs") to receive tax exemptions.
Future plans involve refining tax structures for funds and single family offices, introducing comprehensive tax reporting mechanisms, and expanding the talent pool through education and training initiatives at the Hong Kong Academy for Wealth Legacy ("HKAWL").
The government aims to attract more family offices and high-net-worth individuals, evidenced by over 1,370 applications for the New Capital Investment Entrant Scheme ("New CIES") since its inception.
As of the end of 2023, research indicates approximately 2,700 single family offices in Hong Kong, with an anticipated rise to over 3,000 in the near future.
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