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SFO Consultation & Establishment
  • CONSULTATION WITH THE SC
  • ESTABLISHING A SINGLE FAMILY OFFICE
  • NEXT STEPS
  • CONSULTATION WITH THE SC
    Prospective applicants must consult with the SC prior to or in parallel with the establishment of the SFO. Such consultation must be undertaken prior to submitting their application for conditional approval. This consultation is essential to align the applicant's business model and structure with the requirements of the SFO Incentive Scheme.

    Key Information for the Consultation Process

    • At least one family member of the prospective applicant is required to participate in the consultation
    • The consultation aims to provide a clear understanding of the prospective applicant’s business model, structure, and readiness to meet the scheme’s requirements.

    Prospective applicants will be required to prepare the following information prior to the consultation and present the following during the session;

    1. Business Plan

      • A comprehensive description of the family’s businesses, trusts, foundations, and planned assets under management for injection into SFOV (local and global). This should include:

        • Investment philosophy and detailed description of business activities or source of wealth of the family.
        • List of identified assets under management (local and global) for injection into SFOV.
        • Group structure and governance framework, showing all layers of holding companies from the SFOV to the ultimate owners (“UO”).

      • Comprehensive information of the Principal, including their full name and professional background.
      • Hiring plan or full name and IC/Passport number of full-time employees (if identified)

    1. Relationship between members of a single family

      • Provide a family tree to demonstrate members of the prospective applicant are lineal descendants of a single ancestor including the spouses and children of these individuals.

      • Full name and Identification Card/passport number of family members of the prospective applicant

    1. Ownership Structure

      • An illustration demonstrating that the SFOV and SFO MC is wholly owned, directly or indirectly, by one or more individuals who are members of a single family.

      • This should clearly show the relationship between the SFOV and SFO MC and the ultimate beneficial owners of the single family.


    Please email [email protected] to set an appointment for the consultation process.

  • ESTABLISHING A SINGLE FAMILY OFFICE

    To participate in the SFO Incentive Scheme, prospective applicants must establish a structured framework for managing their assets and investments, comprising two entities: the Single Family Office Vehicle (SFOV) and Single Family Office Management Company (SFO MC). This foundational step ensures compliance with the scheme's requirements and alignment with the SFO Incentive Scheme.

    Prospective applicants may begin the process of establishing a family office framework by undertaking the following requirements:

    1. Establishment of entities. Details relating to the set-up of each entity are as follows: 

    Entities

    Requirements
    Single Family Office Vehicle (SFOV)
    • A new Malaysian company incorporated under the Companies Act 2016.
    • Must be wholly owned, directly or indirectly, by one or more individuals who are members of a single family.
    • Must be a resident entity in Malaysia.
    • Operate and based in Pulau 1, Forest City Special Financial Zone.
    • Established exclusively to hold assets and investments for the benefit of members of a single family.
    Single Family Office Management Company (SFO MC)
    • A Malaysian company incorporated under the Companies Act 2016.
    • Must be wholly owned, directly or indirectly, by one or more individuals who are members of a single family.
    • Operate and based in Malaysia.
    • Established to manage the assets and investments for the benefit of members of the single family.
    • Must be a related corporation to the SFOV.
    • Must have a Service Level Agreement (SLA) or Investment Management Agreement (IMA) with the SFOV to define its scope of services, including investment management, advisory, and compliance.
    • All assets under management (AUM) of the SFO MC must be managed in Malaysia.
    • The SFO MC may delegate investment management activities to a licensed holder of a Capital Markets Services Licence for fund management undertaking portfolio management.
    • More information on the requirements of the SFO MC can be found here.

    1. Legal Opinion

      • The SC may require a legal opinion to verify the relationship between the prospective applicant to the SFOV and SFO MC particularly in cases involving complex ownership structures, to confirm the ultimate beneficial owner (UBO).
      • This ensures that the SFO's management of assets exclusively for the SFOV does not trigger licensing requirements under the CMSA.


    1. Bank Account
      • Open a bank account (non-retail accounts) with a financial institution licensed by Bank Negara Malaysia (BNM), for the SFOV.
      • The SC would require proof that enhanced customer due diligence (eCDD) has been conducted on this bank account.

  • NEXT STEPS

    Subsequent to fulfilling the requirements for establishing the SFO, prospective applicants may proceed with the Conditional Approval process.

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The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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