HNW solutions glossary: 65 terms in English and Chinese

An informal industry term for a person with substantial investable wealth. There is no single legal definition in Singapore; banks, research firms and wealth managers each use their own cut-offs. Where the law needs a threshold, it uses specific categories instead, such as the accredited investor tests in the Securities and Futures Act. On this site, "HNW family" describes a household whose affairs are complex enough to need several of the six solution areas and more than one professional.

A legal category under section 4A of the Securities and Futures Act 2001. An individual qualifies with net personal assets exceeding S$2 million, net financial assets (net of related liabilities) exceeding S$1 million, or income in the preceding 12 months of not less than S$300,000; a corporation qualifies with net assets exceeding S$10 million. MAS stated on 5 February 2025 that the criteria were last updated in 2018. AI status gives access to more products but fewer regulatory safeguards than retail investors receive.

The step by which an investor who meets an AI threshold expressly agrees, with a particular institution, to be treated as an accredited investor. Meeting the threshold alone is not enough. Before opting in, the institution should explain which safeguards will no longer apply. Opt-in is given institution by institution, so a client may be treated as an AI by one bank and as a retail investor by another. Ask how consent can later be withdrawn.

The value of an individual's total assets minus total liabilities, used in one of the accredited investor tests (threshold: more than S$2 million). Under section 4A(1A) of the Securities and Futures Act, the primary residence counts at the lower of its value net of any secured credit facility and S$1 million. MAS's FAQs confirm the primary residence can be in Singapore or overseas. Valuations should be supported by documents the institution accepts.

An entity that manages the assets of one family rather than outside clients; MAS's written reply of 5 August 2026 describes Singapore's SFOs as managing "the monies of families". From 15 June 2026, qualifying SFOs operating in Singapore are exempt from fund management licensing under a class exemption, subject to notifying MAS, keeping an account with a MAS-licensed bank and filing an annual return (MAS, 11 June 2026). Tax incentives for an SFO's fund are a separate application under section 13O or 13U.

A firm that provides investment management, administration or coordination services to more than one family. Because it serves third parties, an MFO conducting regulated activities such as fund management generally needs the relevant MAS licence or exemption and does not benefit from the SFO class exemption. Families often consider an MFO when their assets or appetite for running staff do not justify a dedicated SFO. Check the firm's licence status on MAS's Financial Institutions Directory.

An independent investment firm that manages client portfolios held in custody at one or more private banks, rather than at the EAM itself. The client usually signs a limited power of attorney allowing the EAM to give instructions to the bank. Industry guidance on source-of-wealth due diligence (ACIP, May 2025) lists EAMs among wealth management firms expected to establish clients' source of wealth. Confirm the EAM's MAS licence and how it is paid, including any retrocessions from the bank.

A coordination role, not a licence category: the one professional who keeps the family's fact base, agenda and timetable, and makes sure the other professionals' advice fits together. The lead may be a lawyer, accountant, trustee or financial adviser, depending on the case. The lead adviser does not take decisions reserved for other licensed parties. This site's professional-collaboration page explains how the role is allocated and reviewed.

The amount an insurer agrees to pay on the insured event, usually the death of the life assured, as stated in the policy. In large policies, the sum assured may be partly guaranteed and partly dependent on the policy's account value, depending on the product. The Policy Owners' Protection Scheme protects aggregated guaranteed sum assured only up to S$500,000 per life assured per insurer (SDIC, accessed October 2026). Read the product summary to see which part is guaranteed.

The value built up inside a permanent life policy, from which surrender value and policy loans are calculated. For CRS reporting, IRAS uses a specific definition: "cash value" means the greater of the amount the policyholder can receive on surrender and the amount the policyholder can borrow against the contract. Cash value insurance contracts can therefore be reportable financial accounts. The cash value of non-guaranteed or investment-linked policies changes with crediting rates, fund prices and charges.

The amount paid to the policy owner if the policy is terminated before a claim, after surrender charges and any outstanding policy loans. In the early years of a large policy it can be well below premiums paid. Only the guaranteed part of surrender value is protected by the PPF Scheme, up to S$100,000 per life assured per insurer (SDIC). In premium financing, the lender's security depends on surrender value, which is why falling values can trigger repayment demands.

The 14-day period, starting from the day the policy owner receives the policy documents, during which a new life policy can be cancelled for a refund of premiums less medical and other expenses the insurer has paid (MoneySense, updated 11 May 2026). The free-look applies to the policy only. Where premiums are financed, the loan agreement is a separate contract with its own terms on cancellation and early repayment.

A nomination under Singapore's Insurance Act that creates a statutory trust over policy proceeds in favour of the policy owner's spouse and/or children only. LIA states that proceeds are "generally protected from creditors" in bankruptcy and that the owner cannot unilaterally change the nomination. Only a policy owner who is also the life assured and at least 18 may make one (LIA guide, March 2026). Exceptions to creditor protection exist, so a lawyer should review the case.

A nomination that the policy owner can change at any time without the nominees' consent, and which is not limited to a spouse and children. It does not create a trust and does not by itself protect proceeds from creditors. LIA states that "the assignment of your policy will revoke your nomination", so assigning a policy to a lender as security for premium financing cancels a revocable nomination (LIA guide, March 2026).

The legal transfer of some or all of the policy owner's rights under a policy to another party. An absolute assignment transfers ownership; a collateral assignment gives a lender security over the policy until a loan is repaid. In premium financing, the lender usually takes an assignment and can surrender the policy to recover what it is owed (MoneySense). Assignment revokes a revocable nomination, so beneficiary arrangements must be redone after the loan ends.

The insurer's assessment of whether, and on what terms, to accept an application. Medical underwriting looks at health and lifestyle; LIA notes that, depending on age and amount applied for, applicants "may have to undergo a routine medical examination and/or tests" (LIA guide, April 2024). Outcomes include standard terms, an extra premium (loading), exclusions, postponement or decline. All declarations must be complete and accurate, or the contract may be void.

The part of underwriting that tests whether the sum assured is reasonable in relation to the applicant's income, net worth, insurable interest and stated purpose of cover. For large policies, insurers typically ask for evidence of assets and income and for source of wealth, defined in MAS guidance to insurers as the origin of the customer's "entire body of wealth (i.e. total assets)". Financial underwriting is separate from any lender's credit assessment for premium financing.

A statutory scheme administered by SDIC that protects guaranteed benefits of policies issued by Singapore-licensed insurers if an insurer fails. For individual life policies, caps are S$500,000 of aggregated guaranteed sum assured and S$100,000 of aggregated guaranteed surrender value, per life assured per insurer, for residents and non-residents (SDIC, accessed October 2026). Investment-linked benefits tied directly to asset values are not covered because they are not guaranteed.

A life policy, typically investment-linked, offered on a private basis to wealthy or institutional clients, in which the policy's assets are held in a dedicated or segregated account and may be managed by an appointed investment manager. Minimums, permitted assets and carriers vary by jurisdiction and insurer. PPLI is often discussed alongside trusts and family offices. Structure, parties and carriers are covered on the sister site ppli.com.sg.

A universal life policy whose account value is credited with interest linked to the performance of a market index, usually subject to a cap and a floor. MoneySense notes that the minimum crediting rate on universal life policies "can be set at 0%" (updated 28 September 2026). Charges continue to be deducted regardless of credited interest. Illustrated values are not guaranteed and are not indicative of future results. Product mechanics are covered on iul.sg.

A universal life policy whose account value is invested in sub-funds chosen by the policy owner, so the value rises and falls with those investments. VUL offers flexibility in premiums and investments but carries investment risk with no guaranteed account return. Because benefits are tied to asset values, they generally fall outside the PPF Scheme's guaranteed-benefit protection. Mechanics and costs are covered on the sister VUL sites in this network.

A bank, or a division of one, that provides banking, custody, investment, credit and wealth-structuring services to wealthy clients. In Singapore, private banks operate under MAS bank licences and are subject to MAS anti-money laundering notices and guidance on private banking controls. MAS reported that private banking client assets grew by 19% in 2024 (speech, 29 September 2025). Minimum relationship sizes are set by each bank and are not regulated thresholds.

An arrangement under which the client authorises the bank or manager to make investment decisions within an agreed investment policy and risk profile, without seeking approval for each trade. The client sets objectives, restrictions and reporting requirements; the manager executes. Fees are usually a percentage of assets managed. A discretionary mandate is a common alternative to running an in-house investment team in a single family office.

An arrangement under which the bank or adviser recommends investments but the client makes and approves each decision. The client keeps control and responsibility; the adviser must give advice suitable to the client's profile. Fees may be asset-based, transaction-based or both. Advisory mandates suit families who want to remain involved in decisions, provided someone in the family has the time and knowledge to review recommendations.

A loan or credit line secured on a pledged portfolio of investments, usually held in custody with the lending bank. The bank assigns a lending value to each asset class and allows borrowing up to the total. If collateral values fall, the bank issues a margin call and may sell assets. Credit used to finance an investment portfolio counts as a "related liability" when calculating net financial assets for accredited investor purposes (MAS FAQs).

The ratio of the loan amount to the value of the collateral securing it. In Lombard lending each asset receives its own lending value; in premium financing the lender sets LTV against the policy's surrender or cash value. LTV terms are set by the lender, differ between institutions and can change during the loan, so a structure that is comfortable at inception may breach limits after a market fall or a change in policy values.

A demand by a lender for the borrower to add collateral or repay part of a loan because the collateral no longer supports the outstanding balance. In premium financing, MoneySense notes the lender may demand partial or full repayment "when the investment returns of your policy decline such that the cash value of your policy becomes lower than your loan amount". If the call is not met, the lender can sell collateral or surrender an assigned policy.

Borrowing from a financial institution to pay a large life insurance premium, with the policy assigned to the lender as security. MoneySense advises consumers to "think twice" and to consider a universal life policy only if they can pay the premium without borrowing (updated 28 September 2026). Hong Kong's Insurance Authority applies a specific circular on premium financing from 1 January 2023, a useful reference point but not Singapore law. See financing-and-leverage.

A collective investment scheme offered in Singapore under an exemption from MAS authorisation or recognition and from the prospectus requirement, available only to "relevant persons" such as accredited investors or where the minimum is S$200,000 per transaction (MAS, updated 5 October 2026). Restricted schemes may have less standardised disclosure, longer lock-ups and less liquidity than authorised retail funds, so the offering documents need careful reading.

A statutory scheme administered by SDIC that compensates insured depositors up to S$100,000 if a scheme member fails. It "does not cover foreign currency deposits", and structured deposits and investment products are excluded (SDIC FAQ, accessed October 2026). For HNW families, most private bank assets are investments in custody rather than insured deposits, so custody and segregation arrangements are a separate question.

Singapore fund tax incentive schemes, administered by MAS, that exempt specified income of approved funds. For SFO funds approved on or after 1 August 2026, section 13O/13OA requires at least S$20 million in designated investments and at least two qualifying investment professionals; section 13U requires S$50 million and three. Both require a private banking account with an MAS-licensed financial institution, capital deployment and minimum local spending (MAS Circular FDD Cir 05/2026, 31 July 2026). The circular sets out the full conditions, including transitional rules on hiring.

The measure of fund size used in the 13O and 13U conditions, counting only assets that are "designated investments" under the Income Tax rules. For SFO funds approved on or after 1 August 2026, the minimum must be met at application and at the end of each basis period, and investments in the family's operating businesses do not count towards the minimum (MAS, 31 July 2026). AUM in DI also sets the local spending tier.

An exemption that applies automatically to every entity meeting set conditions, rather than one granted case by case. MAS's revised framework, in force from 15 June 2026, gives "a straight through class exemption from licensing for all qualifying SFOs operating in Singapore". Qualifying SFOs notify MAS, keep an account with a MAS-licensed bank and file an annual return; existing SFOs have until 15 June 2027 to comply (MAS, 11 June 2026).

A Singapore corporate structure for investment funds, which can be set up as a single fund or as an umbrella with multiple sub-funds whose assets and liabilities are segregated. A VCC must be managed by a permissible fund manager. MAS reported 1,406 VCCs with 3,443 sub-funds as of 31 December 2025 (Singapore Asset Management Survey 2025). See family office for how SFOs use VCC sub-funds.

For the 13O and 13U schemes, a portfolio manager, research analyst or trader who is a Singapore tax resident, earns more than S$3,500 a month and engages substantially in fund management (MAS Circular FDD Cir 05/2026). SFO funds approved from 1 August 2026 need at least two qualifying IPs for 13O/13OA and three for 13U, with at least one who is not a family member, by the end of the first year of assessment's basis period.

A MAS scheme for family offices managing section 13O, 13OA or 13U funds that allows a 100% tax deduction for overseas donations made through qualifying local intermediaries, for five years, capped at 40% of the donor's statutory income. The family office must meet an additional local business spending requirement of S$200,000 (MAS, page updated 7 October 2026). Application windows and current conditions should be confirmed with MAS before planning a gift.

The person who creates a trust by transferring assets to a trustee under a trust deed. Once assets are validly transferred, they generally belong to the trustee, to be held for the beneficiaries on the deed's terms. Whether a trust is respected depends on proper constitution, the trustee's independence and the absence of an intent to defeat existing creditors. How much control a settlor can keep without undermining the trust is a question for a lawyer.

The person or company that legally holds trust assets and administers them for the beneficiaries under the trust deed and trust law. A trustee owes fiduciary duties: to act in the beneficiaries' interests, keep proper records and avoid conflicts. Providing trust services as a business generally requires a licence from MAS, unless an exemption applies. Trustee income can be assessed to tax at 17% (from YA 2021), final at trustee level (IRAS).

A company holding a trust business licence from MAS under the Trust Companies Act. MAS lists the activities that may require a licence: creating an express trust, acting as trustee, arranging for someone to act as trustee and providing trust administration services (MAS, updated 29 September 2023). Licensed trust companies are subject to MAS anti-money laundering requirements. Check any trustee on MAS's Financial Institutions Directory.

A company set up to act as trustee for the trusts of a single family, often with family members or advisers on its board. Trust services carried out by a private trust company are exempt from MAS licensing, but MAS states that private trust companies "are required to engage a licensed trust company" to meet anti-money laundering requirements (MAS, updated 29 September 2023). A PTC adds governance flexibility but also running costs and director responsibilities.

The maximum period within which trust property must vest in beneficiaries. Under section 32(1) of Singapore's Civil Law Act 1909, "the perpetuity period shall be 100 years or such shorter period as may be specified in the instrument". Trust deeds usually state a vesting date within this limit. Trusts governed by other laws follow their own rules, which can differ.

A non-binding document in which the settlor tells the trustee how they would like discretion to be exercised, for example the order of priorities between beneficiaries, education funding or how to support a family business. It guides the trustee but does not override the trust deed or the trustee's duties. It should be reviewed after major family events and kept consistent with the will, nominations and LPA.

A legal document and a deed by which a person aged 21 or over appoints one or more donees to make decisions on their personal welfare and/or property and affairs if they lose mental capacity (Office of the Public Guardian, guide dated 5 August 2026). An LPA must be registered before it can be used. It does not cover company-level arrangements, which may need separate provisions in bank mandates or shareholder agreements.

A court order appointing a deputy to make decisions for a person who has lost mental capacity and did not make an LPA. Family members must apply to court, which takes time and adds cost, and the court defines the deputy's powers. For HNW families, an incapacity without an LPA can stall investment decisions, company signatures and property transactions until a deputy is appointed.

A court document confirming the executor named in a valid will has authority to administer the deceased's estate. In Singapore, the Family Courts and the Family Division of the High Court hear probate applications (Judiciary, updated 15 October 2024). Some assets may not require a grant, such as certain insurance policies with nominations and CPF monies. MoneySense notes the whole process "may take three to six months".

A court document appointing an administrator to deal with the estate of a person who died without a valid will, or whose will does not appoint an executor able to act. The administrator distributes assets under the Intestate Succession Act (which does not apply to Muslims) or the will, as the case may be. For small estates not exceeding S$50,000, a grant may not be required if the Public Trustee agrees to administer the estate (Judiciary).

The statutory rules deciding who inherits when a person dies without a valid will. Under Singapore's Intestate Succession Act, for example, a spouse and children (with no surviving parents) share the estate half to the spouse and half to the children in equal portions (MoneySense, updated 28 September 2026). The Act does not apply to Muslims. Assets located overseas may be governed by local succession law.

The status that decides which country can tax a person on their income and where CRS information is reported. For foreigners, IRAS generally treats a person as resident if they stayed or worked in Singapore for at least 183 days in the previous calendar year, or continuously for three consecutive years (IRAS, updated 27 April 2026). Tax residence is separate from immigration status, and a person can be resident in more than one country under domestic rules.

A letter from IRAS certifying that a person or company is a Singapore tax resident, mainly used to claim benefits under a double tax agreement. IRAS states that applications are processed in two to three weeks (updated 20 August 2026). A COR is evidence for a specific year and purpose; it does not stop another country from asserting residence under its own rules, which a treaty's tie-breaker clause may then need to resolve.

The OECD standard for automatic exchange of financial account information between tax authorities. Singapore has exchanged information under CRS since September 2018; reporting financial institutions file with IRAS by 31 May each year (IRAS, updated 9 September 2026). Reportable accounts include depository, custodial and certain equity and debt interests, and cash value insurance and annuity contracts held by tax residents of partner jurisdictions.

The updated version of the CRS that expands its scope and due diligence requirements. IRAS states the Amended CRS applies from 1 January 2027 and that "Singapore is expected to commence exchanges under the Amended CRS in 2028" (IRAS, updated 9 September 2026). Hong Kong has proposed a similar timetable, subject to its legislative process. Families should expect fuller self-certification requests.

The US Foreign Account Tax Compliance Act, which requires foreign financial institutions to identify and report accounts held by US persons. Singapore's 2014 Model 1 intergovernmental agreement (IGA) with the US was given effect by regulations in force from 18 March 2015; a 2018 reciprocal Model 1 IGA took effect through regulations from 1 January 2021 (IRAS, updated 11 August 2026). FATCA operates alongside, not instead of, US persons' own filing obligations.

A signed declaration in which an account holder states their tax residence(s) and taxpayer identification numbers, and for entities their classification and controlling persons. Financial institutions rely on it for CRS and FATCA reporting and must check it against other information they hold. An inaccurate self-certification can lead to wrong reporting and penalties; it must be updated when circumstances change, such as moving country.

A treaty between two jurisdictions that allocates taxing rights over income and provides relief from double taxation. Singapore's network of DTAs, limited DTAs and exchange-of-information arrangements covers around 100 jurisdictions (IRAS list, updated 4 February 2026). Claiming treaty benefits usually requires a Certificate of Residence. Income tax DTAs generally do not cover estate or inheritance taxes, which need separate analysis.

A provision of Singapore's Income Tax Act, effective 1 January 2024, that taxes gains from the disposal of foreign assets received in Singapore by entities of a "relevant group", unless the entity has adequate economic substance in Singapore; gains from foreign intellectual property are taxed regardless (IRAS e-Tax Guide of 8 December 2023, as summarised by DLA Piper, 14 December 2023; confirm against the e-Tax Guide). It affects companies, including family holding entities, not individuals directly.

A stamp duty on purchases of residential property in Singapore on top of the standard buyer's stamp duty. For purchases from 27 April 2023, IRAS lists rates including 60% for foreigners buying any residential property, 65% for entities and trustees, and 5% for a permanent resident's first property (IRAS, updated 27 August 2026). Remission rules for specific cases exist and need checking.

The origin of a customer's entire body of wealth, that is, total assets. Industry best practices (ACIP, May 2025) state that private banks and wealth managers are expected to establish SoW for all customers and beneficial owners, corroborated against documents or public sources. Typical evidence covers inheritance and gifts, business ownership, investment gains and employment income. See source-of-wealth.

The origin of the specific money used in a particular transaction, such as the transfer that funds an account or pays a premium. It differs from source of wealth, which explains how total assets were accumulated. Institutions typically ask for the account the money comes from, statements showing how it arrived there and how that transaction fits the source of wealth narrative.

A person who holds or has held a prominent public function, together with family members and close associates. MAS Notice 626 requires banks dealing with PEP customers to obtain senior management approval, establish source of wealth and source of funds, and apply enhanced ongoing monitoring. PEP status does not prevent a relationship, but it lengthens onboarding and review.

Additional checks applied to customers assessed as higher risk, such as PEPs, complex structures or certain jurisdictions. ECDD typically includes establishing source of wealth by reasonable means, senior management approval, and closer ongoing monitoring (ACIP, May 2025, referencing MAS requirements). Families with trusts, holding companies and several countries should expect ECDD and prepare one consistent fact file.

An individual or legal entity with significant interest in or significant control over a company. ACRA's guidance includes holding more than 25% of shares, more than 25% of voting rights, or the right to share in more than 25% of capital or profits, as well as control by other means (ACRA guidance v2.0, 16 June 2025). Trustees, nominee arrangements and family holding companies need careful analysis.

The register that Singapore companies must keep of their registrable controllers. Companies incorporated on or after 16 June 2025 must keep it from incorporation and file controller information with ACRA at incorporation; updates must be filed with ACRA within two business days of updating the register. ACRA has kept a central register of controllers since 30 July 2020 (ACRA, page updated 6 March 2026).

A business that provides corporate services such as forming companies, acting as company secretary or arranging nominee directors. Under the Corporate Service Providers Act 2024, in force since 9 June 2025, anyone providing corporate services in or from Singapore must register with ACRA; carrying on business as an unregistered CSP can lead to a fine not exceeding S$50,000, imprisonment of up to two years or both (ACRA, page updated 20 April 2026).

A director who acts on the instructions of another person. Under the Corporate Service Providers Act 2024, a person acting as a nominee director by way of business must be arranged by a registered CSP, which must confirm the person is fit and proper; acting without such an arrangement can lead to a fine not exceeding S$10,000 (ACRA). Nominee arrangements must also be reflected in the company's registers.

MAS's two public lookup tools. The Financial Institutions Directory "provides a list of financial institution regulated by MAS"; the Financial Institution Representatives Register "provides a list of individuals who conduct activities regulated by MAS" (MAS, accessed October 2026). Use both before dealing with a firm or adviser, and check MAS's Investor Alert List, which MAS describes as "not exhaustive".