HNW solutions glossary (48 terms, Chinese and English)

An investor category defined in section 4A of the Securities and Futures Act. An individual qualifies by meeting any one test: net personal assets above S$2 million (with the primary residence counted up to S$1 million), net financial assets above S$1 million, or income of at least S$300,000 in the past 12 months. The investor must opt in with the institution, which must still assess suitability.

An institution licensed by MAS, or exempt by law, that may advise on investment and life insurance products; representatives are appointed by licensed financial adviser firms, banks, insurers or brokers. Institutions can be checked on the MAS Financial Institutions Directory (FID) and individuals on the Financial Institution Representatives Register (RR).

The MAS principle that financial institutions must treat customers fairly in product design, sales and after-sales service. The current Guidelines FSG-G04 took effect on 30 May 2024, replacing FAA-G11; they apply to all financial institutions and emphasise the responsibility of the board and senior management for fair dealing outcomes.

Singapore's independent body for resolving disputes between consumers and financial institutions. Claims must be lodged within six months of the institution's final reply; mediation has no monetary cap, adjudication has been capped at S$150,000 per claim since 1 July 2024, and lodging a dispute is free (FIDReC).

A person who holds or has held a prominent public function, together with their family members and close associates. Under MAS Notice 626, a bank establishing a business relationship with a PEP must obtain senior management approval, establish source of wealth and source of funds, and apply enhanced ongoing monitoring.

Life cover with a high sum assured, usually requiring financial underwriting, used for liquidity on death, transfer of shareholdings and succession. The insurer sets the amount it will accept based on income, assets and the purpose of the cover; benefits above the SDIC policy owner protection limits depend on the insurer's own solvency.

Universal life insurance whose cash value is credited with interest according to the performance of a specified index, within set floor and cap rules; the policy does not invest directly in the index. Crediting rules, charges and the extent of any guarantees follow the insurer's terms, and benefit illustrations are non-guaranteed and do not represent future results.

Universal life insurance that combines death cover with investment sub-accounts. The cash value moves with the performance of the sub-accounts chosen by the policyowner, who bears the investment risk. Cost of insurance and charges are deducted continuously; if the account value is insufficient, further premiums must be paid or the policy may lapse.

Life insurance issued by private placement, usually to qualified investors such as Accredited Investors, which can hold assets inside the policy under an agreed investment strategy. The jurisdiction of issue, acceptable asset classes, fee structure and tax reporting vary widely, so lawyers and tax advisers should be involved in the assessment.

Whole-of-life cover that shares in the distribution of surplus from the insurer's participating fund. Policy benefits consist of a guaranteed portion and non-guaranteed bonuses; bonuses depend on the investment and operating performance of the participating fund, and the non-guaranteed portion of a benefit illustration may turn out higher or lower than actual results.

The owner of the insurance contract, entitled to pay premiums, surrender, assign and nominate beneficiaries; the owner need not be the same person as the life assured. To make a nomination under Singapore's Insurance Act, the policyowner must be the life assured and at least 18 years old (LIA).

The period after purchase during which a policy can be cancelled without giving a reason. According to MoneySense, life insurers in Singapore commonly offer a 14-day free-look period from receipt of the policy documents, refunding premiums less costs already incurred such as medical examinations. (HKMA position) After a policy has been assigned, the cancellation right can be exercised only with the lender's consent; in Singapore, the financing agreement and the insurer's terms apply.

A scheme administered by SDIC that protects policy benefits if a licensed life insurer in Singapore fails. Guaranteed sums assured are covered up to an aggregate of S$500,000, and guaranteed surrender values up to S$100,000 per life assured per insurer; investment-linked benefits tied directly to the value of underlying assets are not covered.

The amount the policyowner can receive on surrendering the policy. The IRAS e-Tax Guide on the CRS defines it as the greater of the surrender value and the amount that can be borrowed against the policy, and insurance contracts with a cash value are reportable financial accounts under the CRS.

Borrowing from a bank to pay the premium on a large policy, with the policy assigned to the bank as collateral. Rates are usually floating, and repayment may be demanded if the cash value falls below the loan; MoneySense advises readers to "Think twice before taking this up".

The legal act by which a policyowner transfers their rights in a policy to another party (such as a financing bank) as security. Under the LIA guide, assigning a policy that has a revocable nomination revokes the nomination; once the loan is repaid and the assignment released, a fresh nomination must be made.

The ratio of the loan amount to the value of the collateral, and the central measure for credit approval and margin calls. LTVs for premium financing and Lombard loans are set case by case by the lender according to asset class and client circumstances, and may be adjusted as markets move; this site does not quote specific ranges.

A demand from the lender for the borrower to provide additional collateral or repay part of the loan when the collateral value falls and the margin ratio drops below the required level. If the shortfall is not made up within the deadline, the bank may force the sale of the collateral; some terms permit liquidation without prior notice, depending on the contract.

The Singapore dollar interest rate benchmark: the volume-weighted average rate of unsecured overnight interbank SGD borrowing transacted between 8am and 6.15pm in Singapore. It is administered by MAS and published on the next business day, alongside 1-, 3- and 6-month Compounded SORA.

A credit facility secured on a liquid investment portfolio of shares, bonds, funds and similar assets, common in private banking. The bank applies lending values to the assets and monitors the margin ratio continuously; a market fall may trigger margin calls and forced liquidation.

An analysis of how a financing structure holds up under hypothetical scenarios, such as interest rates rising by 2 to 3 percentage points or the policy or portfolio value falling by 20%, estimating margin calls and cash flow shortfalls. The scenario figures are hypothetical and do not represent any institution's terms or future results.

Banking services for HNW clients covering custody, investment advice, discretionary management, credit and wealth planning. The Singapore industry has applied the Private Banking Code of Conduct since 1 September 2011, under which practitioners must pass the relevant competency assessments; account opening thresholds are set by each bank.

The asset measure banks use to segment clients, generally covering financial assets such as cash, deposits, shares, bonds and funds, and usually excluding the owner-occupied home. Each bank calculates it differently; DBS Private Bank, for example, publicly states a threshold of more than US$5 million (accessed 23 October 2026).

A service in which the client authorises an investment manager to make buy and sell decisions within agreed objectives and restrictions; in an advisory account, by contrast, the client decides each transaction. The two differ in allocation of responsibilities, fees and reporting, which should be set out in the agreement.

A scheme that pools investors' money for collective investment by a manager, such as unit trusts and funds. Schemes constituted in Singapore must be authorised by MAS, and those constituted overseas must be recognised; a prospectus is required for offers to the public.

A collective investment scheme offered only to specified qualifying persons, or with a minimum subscription of S$200,000 per transaction, which is exempt from MAS authorisation, recognition and prospectus requirements (MAS). Investors receive correspondingly less disclosure and regulatory protection and need to strengthen their own due diligence.

The deposit insurance scheme administered by SDIC. Eligible Singapore dollar deposits are covered up to S$100,000 per depositor per Scheme member; foreign currency deposits, structured deposits and investment products are not covered (SDIC, accessed 22 October 2026).

Source of wealth is how a client's overall wealth was accumulated; source of funds is where the money for a particular transaction comes from. Banks and insurers must verify both under anti-money-laundering rules, using evidence such as salary records, tax assessments, bank statements, share sale documents, trust deeds and audited financial statements.

A voluntary, government-established retirement savings scheme. The annual contribution cap is S$15,300 for citizens and PRs and S$35,700 for foreigners, with tax relief on contributions; withdrawals after the statutory retirement age are only 50% taxable, while premature withdrawals are fully taxable with a 5% penalty (MOF, IRAS).

An entity that manages the money of one family only and does not serve third-party clients (MAS). A new class exemption framework from licensing applies from 15 June 2026, requiring notification to MAS, an account with a MAS-licensed bank and an annual return; existing SFOs have a transition period to 15 June 2027.

Schemes that grant tax concessions on specified investment income of qualifying funds. For new approvals from 1 August 2026: 13O/13OA require AUM of at least S$20 million in designated investments and two investment professionals; 13U at least S$50 million and three; both require a private bank account (MAS circular, 31 July 2026).

A corporate structure designed for funds, available since 14 January 2020 (ACRA). An umbrella VCC can have multiple sub-funds whose assets and liabilities are segregated from one another. As at 31 December 2025 there were 1,406 VCCs and 3,443 sub-funds (MAS).

A qualifying person engaged in investment management at the fund management company or family office, as required under the 13O/13U schemes. For new 13O/13OA approvals from 1 August 2026 at least two are required (at least one of them not a family member), and at least three for 13U; qualification criteria and other details follow the MAS circular.

A person who provides companies with services such as incorporation, company secretarial work, registered addresses and nominee directors by way of business. The Corporate Service Providers Act 2024 took effect on 9 June 2025: all CSPs must register with ACRA, and acting as a nominee director by way of business must be arranged through a registered CSP.

A beneficiary nomination under the Insurance Act that cannot be changed unilaterally; it can name only a spouse and/or children and creates a statutory trust in their favour. Under the LIA guide, policy proceeds are generally protected in bankruptcy, and the policyowner cannot change the nomination unilaterally.

A beneficiary nomination that can name anyone and can be changed or revoked at any time. Proceeds are paid directly to the nominee on the death of the life assured, without passing under the will; however, once the policy is assigned (for example for premium financing), the nomination is revoked (LIA, March 2026).

An arrangement in which a policy or its proceeds form the trust property, commonly with the trust as policyowner or as beneficiary of the proceeds. The trustee distributes in instalments or on conditions under the trust deed and Letter of Wishes, which suits families who need proceeds managed over the long term.

A company set up specifically to act as trustee of a particular family's trusts. Under Singapore's Trust Companies Act a PTC may be exempt from licensing but must appoint a licensed trust company to carry out the related anti-money-laundering obligations (MAS); its board usually comprises family members and professionals.

A non-binding document from the settlor to the trustee setting out how they would like the trust property managed and distributed, such as the timing of distributions and priorities for education and living expenses. Trustees usually take it into account, but legally the trust deed prevails; it can be updated as the family changes.

A legal document by which a person aged 21 or above appoints donees in advance to act on their personal welfare and property affairs if they lose mental capacity (the OPG describes it as also being a deed). It must be witnessed and certified by an LPA certificate issuer and registered with the Office of the Public Guardian. Without one, family members must apply to court for a Deputyship order.

Where the deceased left no valid will, the estate is distributed in the statutory order under the Intestate Succession Act. For example, where there is a surviving spouse and children and the parents have died, the spouse receives half and the children share the other half equally (MoneySense). The Act does not apply to Muslims, whose estates are distributed under Islamic law.

A voluntary, confidential registration service administered by the Singapore Academy of Law (SAL) since 4 May 2020. It records the testator, the date of the will, who drafted it and where the original is kept, but does not hold paper originals; registrations submitted through Participating Law Firms may also store an electronic copy. The registration fee is S$50 per registration and the search fee S$10 per search (SAL).

A status determined under tax law that makes a person liable to tax in a jurisdiction on worldwide or specified income; it is distinct from residence status. IRAS's general rule for foreigners includes staying or working in Singapore for at least 183 days in the previous calendar year; Singapore's top personal income tax rate is 24% (from YA 2024).

The OECD standard for automatic exchange of financial account information for tax purposes. Singapore has exchanged information under the CRS since September 2018, with Reporting Financial Institutions filing by 31 May each year; the Amended CRS applies from 1 January 2027, with exchanges under it expected to begin in 2028 (IRAS).

A US law requiring foreign financial institutions to identify and report accounts held by US persons. The Singapore–US Model 1 Intergovernmental Agreement took effect on 18 March 2015 and the reciprocal version on 1 January 2021; Singapore financial institutions report to IRAS, which then exchanges the information (IRAS).

A form in which an account holder declares their jurisdictions of tax residence and Taxpayer Identification Numbers (TIN) to a financial institution; it is the basis on which the reporting jurisdiction is determined under the CRS and FATCA, and entity accounts must also declare their controlling persons. It should be updated promptly when information changes, and a false declaration may breach local law.

A work pass for foreign professionals in Singapore, assessed against a minimum qualifying monthly salary (which rises with sector and age) and the COMPASS points framework (40 points required) (MOM). The specific salary thresholds follow MOM's current pages; residence pathways are covered in detail on the sister site hnwi.sg.

An EDB-administered route to Permanent Residence with three investment options, A, B and C. Family office principals can choose only Option C: set up a single family office with AUM of at least S$200 million, transfer at least S$50 million to Singapore at the approval-in-principle stage, deploy it into specified investments within 12 months of final approval, and maintain it for the validity of the Re-Entry Permit.