Clearer licensing rules, Greater Bay Area opportunities can turn Hong Kong into a family office hub, industry players say

The securities regulator’s recent clarification of rules surrounding licensing is likely to attract more family offices – wealth managers who deal with ultra-rich dynasties

The bay area could generate US$185 million worth of wealth management revenue by 2025, a sign of ‘how large and important’ the market will be, says Raffles Family Office boss

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Family offices manage the wealth of either a single super-rich clan or a group of wealthy families. Photo: Shutterstock

Published: 2:30pm, 14 Sep 2020Updated: 2:30pm, 14 Sep 2020

New regulatory clarity and business opportunities arising from the Greater Bay Area could turn Hong Kong into a hub for family offices, according to industry players.

The Securities and Futures Commission introduced guidance this month to clarify the licensing requirements for family office operators.

Family offices manage the wealth of either a single super-rich clan or a group of wealthy families.

One set up purely to invest only for one or a handful of wealthy families will not need a licence from the SFC. However, should the family offices run as a business by accepting fees to invest for many families or other investors, it will need to get a licence from the SFC, the watchdog said.

“The new SFC guidance has removed uncertainties about the licensing requirements for family offices. Previously, many operators were not sure if they needed to have a licence. A clear regulatory regime and a vibrant capital market will attract more family offices to set up in Hong Kong,” said Au King-lun, executive director of the Financial Services Development Council, a government advisory body for the strategic development of Hong Kong as an international financial centre.

Raffles Family Office founder and chief executive Kwan Chi-man agreed that clear regulation would help promote the city as a family office hub.