Regulatory Alerts2021-01-01
Financial Services (Family Office) (Amendment) Rules 2021
The Financial Services Commission issued the 2021 Amendment Rules to modify the operational framework for family offices under the Financial Services Act. The revised Rule 4 restricts clients exclusively to family members and their private wealth structures, while explicitly permitting wholly-owned and family-controlled multi-family or single-family office models. These amendments take effect on 6 March 2021, establishing clear compliance benchmarks for licensed family offices.
Government Notices 2021 1097 OliImac1 / Govt Notices 2021 / The FS (Family Office) (Amend) Rules 2021 / 1st Proof - 01.03.2021 Government Notice No. 38 of 2021 FINANCIAL SERVICES ACT Rules made by the Financial Services Commission under section 93 of the Financial Services Act
- Citation These Rules may be cited as the Financial Services (Family Office) (Amendment) Rules 2021.
- Interpretation In these Rules – “Principal Rules” means the Financial Services (Family Office) Rules 2020.
- The Principal Rules are amended – (a) in rule 4, by deleting paragraph (2) and replacing same by – “(2)(a) The family office must have no clients other than “family clients” as defined under Schedule 1. (b) For the purposes of this rule and Schedule 1, family clients also extend to the private wealth structures of such clients, such as their trusts, foundations, companies, partnerships or other similar structures. (c) The family office, whether it is an MFO or SFO may be – (i) wholly-owned by family clients; and (ii) exclusively controlled by family members or family entities.”
1098 Government Notices 2021 OliImac1 / Govt Notices 2021 / The FS (Family Office) (Amend) Rules 2021 / 1st Proof - 01.03.2021 4. These Rules shall come into operation on 6 March 2021. Made by the Financial Services Commission on 6 March 2021.