SINGAPORE Trends and Developments Contributed by: Lee Woon Shiu and Catherine Cheung, DBS Private Bank
approach to client wealth verification. The regulator has explicitly mandated a target to reduce the median private banking onboarding time to under one month by the end of 2026. Banks are to apply the princi - ples of materiality and relevance more strictly, with compliance desks being coached to focus sharply on genuine risk factors, accelerating the placement of investable capital. While striving for efficiency, Singapore maintains its strong commitment to robust documentation and due diligence. Clear and updated details are required for all relevant parties under a trust structure, including beneficiaries, ultimate beneficial owners, settlors and protectors. The analysis of wealth and fund sources remains stringent, necessitating a comprehensive understanding of how wealth was generated and its consistency with a client’s profile. This emphasises the critical need for private banks, trustees, lawyers, accountants and family offices to meticulously record and maintain records, especially for clients with com - plex histories or structures. These dual efforts highlight Singapore’s balanced approach – fostering an efficient environment for wealth management while upholding the highest standards of regulatory integrity. Internalisation of third-party background checks In January 2026, MAS officially eliminated the require - ment for family offices to submit costly, time-consum - ing third-party background check reports issued by external designated service providers. These back - ground and integrity assessments are now conducted directly by MAS’s internal specialised teams, eliminat - ing redundant processing layers, reducing onboarding friction and providing stronger privacy protection for ultra-high net worth individuals. Resolving this major operational pain point further strengthens Singapore’s competitive edge over other global wealth hubs. Expanded criteria for investment professionals (IPs) In the past, what constituted a valid “IP” was strictly narrow. MAS has now implemented much clearer and expanded criteria regarding who qualifies as an IP. Rather than relying solely on formal, traditional fund- management credentials, the updated 2026 guide - lines provide greater flexibility by legally recognising broad, proven relevant investment experience, equity
research track records, and operational entrepreneur - ial backgrounds. To meet the substance requirements for S13O and S13U Schemes, entities must hire IPs with relevant academic degrees or certifications and at least three years of industry experience, who work full-time in Singapore as a tax resident earning a mini - Following announcements from the Singapore 2026 Budget on the expansion of the Equity Market Devel - opment Programme (EQDP) from SGD5 billion to SGD6.5 billion, the Singapore government topped up the Financial Sector Development Fund to reju - venate the domestic capital markets. MAS is using this expanded capital pool to anchor premier asset managers, who execute strategies heavily weighted toward Singapore-listed equities. mum of SGD3,500 monthly. Equity market development Not only will this catalyse greater investments into Singapore equities market and reinforce Singapore’s attractiveness as a capital markets hub, but it also presents a good opportunity for investors, and in particular family offices under the S13O and S13U Schemes with a local capital deployment requirement, to review their local investment mandates and con - sider alternative avenues for fund deployment. Initiatives such as Singapore streamlining its listing rules, the SGX-Nasdaq dual listing bridge and the Anchor Fund, all designed to support companies on their path to listing, have contributed to a marked increase in the number of start-ups and fast-growing companies transforming into high-value enterprises looking to list on the SGX. Consequently, a growing number of ultra-high net worth individuals are amassing substantial wealth, particularly through company shares acquired before and after IPOs. This trend has also encouraged more business owners and founders to consider Singapore not only as a listing destination, but also as a safe financial hub to set up their bespoke wealth planning and succession structures. Pillar Two rules and corporate incentives Singapore’s 2026 Budget addressed the Base Ero - sion and Profit Shifting (BEPS 2.0) global minimum
572 CHAMBERS.COM
Powered by FlippingBook