Taiwan is significantly lagging when it comes to family office regulations, Chris Cottorone, president of TriOrient Investments, told finews.asia, highlighting a need to further efforts in the space due to intergenerational wealth transfer and other factors.

Wealth creation throughout Asia is spurring the creation of new family offices, including amongst rich Taiwanese. But while Singapore and Hong Kong have traditionally been beneficiaries of such assets, Taiwan is also in a position to capture a share of this opportunity, according to Chris Cottorone, president of foreign institutional investor TriOrient Investments.

«There's is no classification for family offices here in Taiwan. Perhaps 10 years ago, such a classification was not needed. However, now it's become very critical,» said Cottorone in a conversation with finews.asia.

Wealth Transfer

Family businesses account for the majority of Taiwan’s GDP and according to a 2019 PwC report, 56 percent were still run by first-generation owners. But there is a wave of ageing Taiwanese founders seeking to transfer their businesses – and wealth – to the next generation.

This has not only accelerated the establishment of new family offices but also driven considerations about where to house such private assets, especially due to Taiwan’s high tax rate on wealthy individuals.

«To help prevent possible capital outflows, the government should consider enacting regulations that focus on the establishment of family offices» Cottorone added.

AmCham Suggestions

According to Cottorone, officials nowadays are seriously considering efforts to welcome family offices to set up in Taiwan. The opportunity extends beyond Taiwanese families to foreign investors who have also been increasingly expressing interest in the market.

Via its annual white paper in June 2023, the American Chamber of Commerce in Taiwan (AmCham) has suggested the government to allow single family offices (SFO) to be established as their own unique entity, rather than under the broader category of foreign institutional investors (FINI). AmCham has also suggested that SFOs should not need to apply for an asset management license.

«Whether they do change the regulations this year, that remains to be seen,» said Cottorone, who is also a member of AmCham Taiwan.