A Monetary Authority of Singapore (MAS) framework aimed at streamlining the setup process for single-family offices (SFOs) to operate in the city-state could make it more difficult for boutique external asset managers (EAMs) to access wealthy families.

This, Lester Tay, CEO of Rockstead Capital, told Asian Private Banker, stems from MAS requirements that call for SFOs and their investment vehicles to maintain bank accounts with MAS-licensed banks.

“The evolving SFO landscape is positive for Singapore, but it also raises the competitive bar since private banks can offer a broader suite of services directly to SFO clients,” Tay said.

This makes it important for EAMs to “differentiate” themselves through specialised capabilities and the value brought to clients, he added.

Tay’s comments come as existing SFOs now have less than a year to comply with the new rules or lose their right to operate. Qualifying SFOs must notify MAS of their operations and disclose their AUM annually, among other requirements, as part of the revised framework.

Sub-S$20m EAM opportunity

However, some see a silver lining to the new regulations. One independent wealth manager told APB that some SFOs – which will be subject to increased regulatory and reporting obligations under the new MAS rules – will turn to MFOs for help.

The only respite from the latest regulations, Tay noted, is the MAS’s 13O scheme, which took effect in 2022 and was aimed at attracting ultra high and high net worth individuals (U/HNWIs) to set up in Singapore. Wealthy families set up under this scheme are exempt from being taxed on qualifying investment income and gains.

While setting up an SFO in Singapore under Section 13O requires a minimum of S$20 million in AUM and a private banking account, Tay explained that non-SFO EAM accounts only require S$5 million: “The S$5 million scheme offers independent wealth managers like Rockstead a slice of the pie, as clients are not required to establish a private banking account.”  

“Under this framework, the requirement to appoint a licensed fund manager creates a clear role for firms to support this segment and its increasingly sophisticated wealth management needs,” he said.

Founder succession and governance risks

Tay heads a S$1.8 billion (US$1.4 billion) AUM Singapore-based MFO, set up in 2005. Similar to other independent wealth managers APB has spoken to, Tay sees a clear disconnect between first- and next-generation family members.

Fewer than a third of HNWIs in Asia Pacific seek professional advice on succession planning and inheritance structuring, according to a June 2026 Lombard Odier report, which surveyed over 390 HNWIs across APAC. Roughly 13.3% of respondents sought advice on family governance and conflict resolution.

For one, many founders place legacy planning in the same box as wealth planning, Tay noted, which then leaves them underprepared for when their assets must be transferred to the next generation.

For instance, a first-generation wealth creator with children will usually want to maintain control over how his or her money is invested, Tay said.

“Many founders remain deeply involved in selecting asset managers and making investment decisions. The challenge is: upon his or her passing, who is going to take over that role?” he said.

Most founders, Tay added, may also opt for the most affordable trust option available, such as standby trusts, just to save on trust structure fees.

“While a standby trust allows founders to retain full control, I encourage clients to consider whether the governance framework should be tested earlier, as a ‘dress rehearsal’ for the eventual transition,” Tay said.

“One of the biggest challenges in succession planning is helping founders gradually transition decision-making and responsibility while they are around to guide the process,” he added.

Ring-fencing next-gen digital asset allocations

With more HNW next-gen family members leaning into private markets and digital assets, founders should not hold back completely but “exercise caution” in allowing their children to invest in such asset classes, Tay said.

“The next generation may have different investment interests, including digital assets, crypto, and automation. The key is to give them room to explore within clear parameters that protect the family’s long-term objectives,” he said.

The same Lombard Odier study noted that 71.4% of baby boomers intend to decrease their allocation to digital assets and cryptocurrencies over the next 12 months, while 47.2% of millennials say they will increase their allocations, with Gen Z respondents looking to either maintain or increase their allocations.

“It is not about preventing the next generation from pursuing their own ideas. A defined portion of capital can give them room to develop their capabilities while safeguarding the family’s long-term objectives,” he said.