Regulations for Single Family Offices

What are designated investments?

  1. stocks and shares of any company, other than a company that is —
    (i)    in the business of trading or holding of Singapore immovable properties (other than the business of property development); and
    (ii)    not listed on a stock exchange in Singapore or elsewhere;
  2. bonds, notes, commercial papers, treasury bills and certificates of deposit, but excluding those which are not qualifying debt securities and which are issued by any company that is —
    (i)    in the business of trading or holding of Singapore immovable properties (other than the business of property development); and
    (ii)    not listed on a stock exchange in Singapore or elsewhere;
  3. real estate investment trusts, exchange traded funds or any other securities which are —
    (i)    denominated in foreign currency issued by foreign governments;
    (ii)    listed on any exchange;
    (iii)    issued by supranational bodies; or
    (iv)    issued by any company,
    but excluding any securities which are issued by any company that is —
    (A)    in the business of trading or holding of Singapore immovable properties (other than the business of property development); and
    (B)    not listed on a stock exchange in Singapore or elsewhere;
  4. futures contracts held in any futures exchanges;
  5. any immovable property situated outside Singapore;
  6. deposits held in Singapore with any approved bank as defined in section 13(16) of the Act;
  7. foreign currency deposits held outside Singapore with financial institutions outside Singapore;
  8. foreign exchange transactions;
  9. interest rate or currency contracts on a forward basis, interest rate or currency options, interest rate or currency swaps, and any financial derivative relating to any designated investment specified in this Part or financial index, with —
    (i)    a financial sector incentive company which is —
    (A)    a bank that holds a licence granted under section 7 or 79 of the Banking Act (Cap. 19);
    (B)    a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act; or
    (C)    a holder of a capital markets services licence under the Securities and Futures Act (Cap. 289) to deal in securities or a company exempted under that Act from holding such a licence;
    (ii)a person who is neither resident in Singapore nor a permanent establishment in Singapore; or
    (iii)    a branch office outside Singapore of a company resident in Singapore;
  10. units in any unit trust which invests wholly in designated investments specified in this Part;
  11. loans that are —
    (i)    granted by a prescribed person to any company incorporated outside Singapore which is neither resident in nor a permanent establishment in Singapore, where no interest, commission, fee or other payment in respect of the loan is deductible against any income of that company accruing in or derived from Singapore; or
    (ii)    granted by a person other than a prescribed person but traded by a prescribed person;
  12. commodity derivatives;
  13. physical commodities if —
    (i)    the trading of those physical commodities by a prescribed person in the basis period for any year of assessment is done in connection with and is incidental to its trading of commodity derivatives (called in this paragraph related commodity derivatives) in that basis period; and
    (ii)    the trade volume of those physical commodities traded by the prescribed person in that basis period does not exceed 15% of the total trade volume of those physical commodities and related commodity derivatives traded by the prescribed person in that basis period;
  14. units in a registered business trust;
  15. emission derivatives;
  16. liquidation claims;
  17. structured products;
  18. investments in prescribed Islamic financing arrangements under section 34B of the Act that are commercial equivalents of any of the other designated investments specified in this Part;
  19. private trusts that invest wholly in designated investments specified in this Part;
  20. freight derivatives;
  21. publicly-traded partnerships that do not carry on any trade, business, profession or vocation in Singapore;
  22. any loan granted to a trustee of a trust constituted outside Singapore, where —
    (i)    the trustee is neither resident in Singapore nor a permanent establishment in Singapore; and
    (ii)    for the year of assessment in question, no interest, commission, fee or other payment in respect of the loan is deductible under the Act against any income of the trust accruing in or is derived from Singapore;
  23. membership or similar interests in a company formed under the laws of any state of the United States of America as a limited liability company, or under the laws of any other foreign country as a limited liability company or its equivalent;
  24. bankers’ acceptances.

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