Single Family Office Management Company (SFO MC) that participates in the Single Family Office Tax Incentive Scheme (“SFO Tax Incentive Scheme”) administered by the Securities Commission Malaysia (“SC”) is a specified person under paragraph 7 of Schedule 3 CMSA.
Subsection 58(3) of the Capital Markets and Services Act 2007 empowers the SC to impose such terms and conditions as it may deem appropriate on a specified person.
In this regard, the SFO MC shall be subject to the terms and conditions hereinafter set out (“the terms and conditions herein”). The terms and conditions herein shall apply to and be read together with other guidelines, instructions, or communication issued by the SC through any communication channel including electronic mail.
In the event of any discrepancy or inconsistency between the terms and conditions herein and the terms and conditions, instructions, or communication issued by the SC to the SFO MC, the latter shall prevail.
The SC reserves the right to vary (by adding, deleting, or modifying in any way) (hereinafter called the “Amendment”) any of the terms and conditions herein at any time and from time to time, by giving notice to the SFO MC.
Any Amendment to the terms and conditions herein shall be deemed to have been notified to the SFO MC once it is:
displayed on the SC’s website; or
sent to SFO MC via electronic mail; or
effected by any other means of notification which the SC determines fit,
and the Amendment shall be deemed effective and binding from the date of notification of the Amendment or such other date as may be specified by the SC in the notification.
All communications in writing must be made via electronic mail to [email protected].
Single Family Office Management Company
A SFO MC that participates in the SFO Tax Incentive Scheme must be:
a company incorporated under the Companies Act 2016;
wholly owned, directly or indirectly, by one or more individuals, all of whom are members of a single family;
established for the purposes of managing the assets and investments for the interest of members of the single family; and
a related corporation to the single family office vehicle (SFOV) as defined under the Income Tax (Exemption) (Single Family Office Incentive Scheme) (No X) Rules 2024.
The SFO MC must have a Service Level Agreement (SLA) or Investment Management Agreement (IMA) with the SFOV setting out the scope of services, including but not limited to investment management, advisory, reporting obligations, and compliance.
An SFO MC may carry out other services outside the scope of the SLA or IMA provided that the services are provided to family members directly or other entities owned by the same single family.
All assets under management (AUM) of the SFO MC must be managed in Malaysia. The AUM must be assets -
owned directly by the SFOV; or
held by the SFOV as beneficial owner through:
a bank licensed by BNM; or
a Capital Markets Services Licence (CMSL) holder, whether the assets are maintained with a local or foreign custodian.
In the case where the SFO MC intends to place funds into a deposit or multicurrency account, the initial placement of such funds must be made directly by the SFO MC with a commercial bank, Islamic bank, or investment bank licensed by Bank Negara Malaysia. Subsequent placements of funds into the deposit or multicurrency account may be placed through a CMSL holder.
Subject to paragraph 14, the SFO MC is permitted to outsource investment or non-investment activities to a service provider.
The SFO MC may outsource any part of the management of the SFOV’s assets to a CMSL holder for fund management undertaking portfolio management.
Where the SFO MC outsources its fund management function–
responsibilities and obligations to the SFOV; and
compliance with the terms and conditions herein and any other obligations and principles as may be specified by the SC, must remain at all times with the SFO MC.
Where management of the SFOV’s assets is not delegated, the SFO MC must convene at least one Investment Committee meeting and one Board of Directors meeting in Malaysia annually.
The SFO MC may enter into an arrangement to jointly manage the assets of the SFOV with the investment professional employed by the SFOV or in collaboration with other Single Family Offices managing the wealth of the same single family.
The SFO MC must comply with all reporting requirements set forth by the SC, including the submission of an annual compliance report detailing the management of the SFOV’s assets.
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.
