On December 30, 2024, the Financial Supervisory Commission (FSC) issued directive Jin-Guan-Zheng-Tou-Zi No. 1130367069, pursuant to Subparagraph 3 of Paragraph 3 of Article 4 of the Securities Investment Trust and Consulting Act, approving securities investment consulting enterprises to accept client mandates for providing family office integrated advisory services.

Family office integrated advisory services refer to advisory services provided through the cooperation between a securities investment consulting enterprise and professionals or businesses that provide trust, financial, accounting, legal, tax, philanthropy, and educational services, to assist clients in achieving business succession and wealth transfer.

Securities investment consulting enterprises shall apply for approval from the FSC before engaging in such services. When providing such services, they shall sign a family office integrated advisory contract with the client. In addition, they are required to report relevant information to the Securities Investment Trust & Consulting Association within five business days at the end of each quarter.

Family governance and business succession can be facilitated through the establishment of a family office via a family constitution. The family constitution should explicitly define the responsibilities of the family office such as managing wealth and investments, tax planning, legal affairs, charitable donations, private school operations, and travel planning¹. When a family appoints a securities investment consulting enterprise to establish a family office, relevant matters outlined in the family constitution should also be incorporated into the family office integrated advisory contract. This ensures that the family constitution carries the binding force of a private law contract, compelling family members and family office personnel to adhere to its provisions², thereby achieving the goal of sustainable family development.

The FSC has approved securities investment consulting enterprises to engage in family office services under a "multi-family office" model³. This allows securities investment consulting enterprises to provide services to multiple families simultaneously, thereby expanding their business scope.

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¹ Chih-Cheng Wang, “Selection of Business Succession Models—Application of and Precautions Regarding the Closed Company and Family Trust Combination Model,” The Taiwan Law Review, Vol. 298, Pg. 80, March 2020; Allison Anna Tail, The Law of High-Wealth Exceptionalism, 71 Ala. L. Rev. 981, 999–1000 (2020)

² Chih-Cheng Wang, “The Role and Limits of the Family Constitution in Family Business Succession,” Contemporary Law Journal, Vol. 23, pp. 24-25, November 2023.

³ Trust Association of R.O.C., “Recommendation and Structural Analysis of Family Trust Models in Taiwan: Research Report by the Trust Association of R.O.C.,” p. 16, December 2018. https://www.trust.org.tw/upload/107122100001.pdf (last accessed January 15, 2025)