The creation of the Multi Family Office business in Monaco
The National Council adopted the draft bill n° 946 concerning the creation of the activity of multi-family office during its public session on Tuesday 29 November 2016. Law n° 1.439 of December 2, 2016 concerning the creation of the activity of Multi Family Office was published in the Journal of Monaco on 9 December 2016.
The purpose of this law is to recognise the existence and regulate the multi-family office activity in view of offering high quality services in the field of asset management to clients residing in Monaco or abroad.
In fact, thanks to the lifestyle its residents enjoy, its security, privileged location, favourable tax regime and skilled professional pool, Monaco has witnessed over the last few years a growing number of affluent families and individuals who have decided to set up their own family office in Monaco, i.e. an entity designed to centralise the management of their assets and ensure the sustainability of their estate, affairs and interests in the broad sense.
Unlike single-family offices which manage the affairs of a single family, a multi-family office’s purpose is to provide services to several families, independently from one another, by aggregating various professionals specialised in the issues affluent families are faced with.
Monaco’s authorities have been aware of the development of this new activity worldwide and wished to reinforce the appeal of our jurisdiction through the creation of a specific regime to license and regulate multi-family offices in the Principality.
The activity of multi-family office must be constituted in the form of a Société Anonyme Monégasque, subject to the prior administrative authorisation issued by ministerial order and, depending on the services offered, to the prior authorisation by The Commission for the Control of Financial Activities, pursuant to the conditions laid down by Law No. 1.338 of 7 September 2007.
The law provides that the multi-family office can receive no remuneration other than that received directly and exclusively from its client and establishes an obligation of insurance covering the civil and professional liability of its officers and directors.
The regulation of the multi-family office activity is part of the policy of attractiveness of the Principality aiming to favour the development of an onshore economic activity.
The Monegasque multi-family office has thus become a regulated and protected label that shall guarantee a high professional standard, professional secrecy and protection of clients’ best interests.
PCM Avocats stands ready to inform, advise and assist you with respect to this new business activity.
By Christine Pasquier-Ciulla and Regina Griciuc