The Hong Kong government today issued the "Policy Declaration on the Development of Family Office Business in Hong Kong" to establish a global ecosystem of family offices and asset owners. Eight major policy measures will be launched, including the establishment of a new "Capital Investor Entry Scheme" and the provision of tax exemptions. To create a competitive and conducive environment for the businesses of global family offices and asset owners to flourish in Hong Kong.
The Hong Kong government will introduce a new "Capital Investor Entry Scheme". The investment scope of the proposed scheme includes stocks listed in Hong Kong; bonds issued or fully guaranteed by Hong Kong listed companies, the government, or entities wholly or partially owned by the government ; subordinated bonds issued by authorized institutions; and eligible collective investment schemes (including investment-linked insurance schemes). In addition to Hong Kong dollar-denominated assets, RMB-denominated assets are also considered. If the application is successful, the applicant can live and develop in Hong Kong with his spouse and unmarried dependent children.
In addition, if approved by the Legislative Council, family investment holding vehicles (FIHVs) managed by single family offices in Hong Kong will be exempt from income tax. The Hong Kong government will next review the current preferential tax regime for funds and carried interests.
The Securities and Futures Commission has recently clarified the licensing requirements, including specific guidelines for family offices, and has established a dedicated communication channel to handle family office inquiries via email and phone. Subject to appropriate investor protection, the appropriate assessment and disclosure process for intermediaries for high-end clients or ultra-high net worth individual clients will be simplified. In addition, the government will fund the establishment of a new Hong Kong Wealth Inheritance Academy, which will be established under the framework of the FSDC and supported by partners such as industry organizations, professional service providers, universities and InvestHK’s FamilyOfficeHK dedicated team to train industry practitioners and wealth inheritance Talent.
The AA is actively studying the establishment of storage, exhibition and appreciation facilities for art and treasures at the airport. The government also hopes to develop Hong Kong into a philanthropic center and allocate charitable funds for global family offices and philanthropists. The government will optimize the procedures for charitable groups to apply for tax exemption, and plans to optimize legislative proposals to improve the ability of exempted charities to invest in family investments. The degree to which the controlling instrument enjoys beneficial interests.
In order to facilitate the establishment and expansion of business of global family offices in Hong Kong, the dedicated team of FamilyOfficeHK will expand its functions to provide services including coordinating wealth owners to promote charity business and assisting with education-related matters.
InvestHK’s FamilyOfficeHK dedicated team will convene and establish a new network of family office service providers, including private banks, accounting and law firms, trusts and other professional service companies, to provide a two-way channel for the government and industry to communicate on the latest policy developments and publicize and promote opportunities in Hong Kong to family offices.
Financial Secretary Paul Chan Mo-po said that the declaration demonstrates the determination to develop Hong Kong into the world's leading family office hub. The vigorous development of this business will help Hong Kong gather funds from around the world, strengthen the financial market and the asset and wealth management industry, and promote Hong Kong's financial and wealth management industry. The sustainable development of professional services, innovation and technology, green, culture and arts, and philanthropy will enhance Hong Kong’s development momentum.
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