Client demand for trust structures has surged in the first half of 2023 at Bank of Singapore, OCBC's private banking arm, with expectations of continued momentum for the rest of the year.
In the first six months of 2023, OCBC’s private banking arm saw a surge in wealth planning demand with more trust structures set up in Singapore during the period than in all of 2022, according to a statement. Bank of Singapore sees continued momentum and expects the figure by the end of 2023 to have doubled year-on-year.
«Asian wealthy families are maturing, and many appreciate, now more than before, the merits of planning for wealth transfer,» said Paul Chua, global head of wealth planning at Bank of Singapore.
«Compounded by the reality of mortality faced by many during the Covid-19 pandemic, families have accelerated their plans for succession resulting in a marked increase in interest for holistic legacy planning through the use of a trust.»
Singapore: Trust Jurisdiction
According to Chua, Singapore is «gaining eminence as a trust jurisdiction» due to several factors.
«These include its well-established legal system based on common law, economic, social and political stability, reputable regulatory framework and a competitive tax regime,» he explained. «This is further supported by a well-developed financial services sector and a rapidly maturing eco-system of legal and tax advisors, professional trustees and other wealth management-related service providers.»
Bank of Singapore helps clients establish trusts via wholly-owned subsidiary BOS Trustee. According to the bank, many of the structures set up in 2023 were for ultra-high net worth clients in Southeast Asia, Greater China and the Middle East with a minimum net worth of $250 million.
