FSDC Proposals to Advance Hong Kong as Family Office Hub

Source: Regulation Asia Editors, Regulation Asia 2020-07-16

The Financial Services Development Council has identified four areas where reform is needed to make Hong Kong a “more conducive operating environment” for family offices.

The FSDC (Financial Services Development Council) has issued a paper offering policy recommendations to further develop Hong Kong as a regional hub for family offices.

“The FSDC believes that a concerted effort is warranted to create a more conducive operating environment for family offices and to enhance the ecosystem in which they operate without seeking to lower the regulatory bar,” the paper says.

The FSDC has proposed the following:

A more flexible regulatory regime, coupled with a higher degree of clarity on the applicability of potential licensing exemptions from the
SFC (Securities and Futures Commission)
A more competitive tax treatment for family offices to retain and attract ultra-high-net-worth families to set up and run operations in
Hong Kong
More tailored training programmes for practitioners and university students to prepare them to meet the needs of family offices
The establishment of a one-stop liaison and services centre to help facilitate the establishment and operation of family offices in Hong Kong

“The growing trend of family offices worldwide, especially in Asia, has provided Hong Kong an unprecedented opportunity to develop into the family office hub for Asia-Pacific,” the paper says, adding that the recommendations will provide clarity, flexibility and support to family offices, making Hong Kong more attractive as a base of operation.

“This would not only benefit the financial services industry in Hong Kong, but also serve as a new growth driver for professional services.”

FSDC

FSDC Proposals to Advance Hong Kong as Family Office Hub

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