The government today issued the "Policy Declaration on the Development of Family Office Business in Hong Kong", explaining its policy stance on establishing a thriving ecosystem of global family offices and asset owners, and announcing eight policy measures, including a new capital investor entry scheme, tax provision relief.
The new capital investor entry scheme is based on the original capital investor entry scheme. The investment scope proposed by the government includes stocks listed in Hong Kong, issued by Hong Kong listed companies, the government or entities wholly or partially owned by the government. or fully guaranteed bonds, subordinated bonds issued by authorized institutions, and qualifying collective investment schemes.
In addition to assets denominated in Hong Kong dollars, the authorities will also consider assets denominated in yuan. If the application is successful, the applicant can live and develop in Hong Kong with his or her spouse and unmarried dependent children.
In terms of tax relief, if approved by the Legislative Council, family investment control vehicles managed by a single family office in Hong Kong will be exempt from tax on profits. The next step will be for the government to review the current preferential tax regime for funds and carried interests.
The Securities and Futures Commission recently published a simple reference guide to clarify frequently asked questions about licensing requirements, including guidance specifically for family offices. On the premise of properly protecting investors, regulators will simplify the suitability assessment and disclosure process of intermediaries for high-end clients or ultra-high net worth individual clients based on risk-based principles.
The government will also fund the establishment of a new Hong Kong Wealth Heritage Institute. The Academy was established under the framework of the Financial Development Council to provide talent training services for industry practitioners and wealth heirs, and to expand the talent pool of the Hong Kong family office industry.
The Airport Authority is studying the establishment of storage, exhibition and appreciation facilities for art and treasures at Hong Kong International Airport. The government pointed out that the new facility will allow global family offices that invest assets in art to benefit from Hong Kong’s growing art ecosystem.
In addition, the government aims to develop Hong Kong into a philanthropic center and allocate charitable funds to family offices and philanthropists around the world to benefit Hong Kong, the mainland, and even the rest of the world. The authorities will streamline the procedures for charitable organizations to apply for tax exemption. Regarding the tax exemption for single family offices managing family investment control vehicles in Hong Kong, the Government plans to optimize the legislative proposals to increase the extent to which exempt charities can enjoy beneficial interests in family investment control vehicles.
In order to facilitate the establishment and expansion of business of global family offices in Hong Kong, the functions of InvestHK’s FamilyOfficeHK dedicated team will be expanded to provide services such as coordinating wealth owners to promote charity business and assisting in education-related matters.
The dedicated team will convene and establish a new network of family office service providers, with members drawn from private banks, accounting and law firms, trusts, professional services firms and others. The network will provide a two-way channel for the government and the industry to communicate on the latest policy developments, and leverage the industry's global network to publicize and promote Hong Kong's opportunities to family offices.
Financial Secretary Paul Chan Mo-po said that the vigorous development of the family office business will help Hong Kong gather funds from all over the world, strengthen the financial market, and the asset and wealth management industry, and promote Hong Kong's financial and professional services, innovation and technology, green, culture and arts, and even Charity continues to develop and enhance Hong Kong’s development momentum. The policy declaration demonstrates the Government's determination to develop Hong Kong into a leading global family office hub.
Secretary for Financial Services and the Treasury Hui Ching-yu said the measures in the policy declaration demonstrate that Hong Kong provides a full range of services to family offices and asset owners around the world. The authorities will further consolidate the thriving ecosystem of global family offices and asset owners in Hong Kong.
Copywriting comes from News gov.hk：https://www.news.gov.hk/chi/2023/03/20230324/20230324_110133_662.html