How To Set Up a Swiss Multi-Family Office
In Switzerland, the regulatory requirements for multi family offices depend on the nature of their activities, rather than being strictly defined by the type of institution they are. We will now be looking at How To Set Up a Swiss Multi-Family Office Essentially, whether a multi family office requires a license is determined by what functions it performs.
When considering the licensing requirements for a Swiss Multi-Family Office engaged or not in financial activities, it’s important to understand that there is no “one-size-fits-all” license that covers all types of financial operations. The specific type of license required will depend on the precise nature of the services your office intends to provide. Please do not hesitate to contact us if you want our assistance in setting up your Swiss Multi Family Office at connect@swissfintechpro.com
| Activity Type | Service Description |
| Personal Concierge/Lifestyle Management | Coordinating travel, dining, entertainment, and personal shopping. |
| Personal Property Management | Overseeing residences, including maintenance and security. |
| Family Events Planning | Organizing family gatherings and significant events. |
| Health and Wellness Management | Organizing wellness retreats and coordinating health professionals. |
| Education | Educating the next generations on various non-financial matters. |
| Art Collection Management | Handling art acquisitions, insurance, and cataloguing. |
| Relocation Services | Coordinating logistical and administrative aspects of relocation. |
| Luxury Item Management | Acquiring and managing luxury assets like yachts, jets, and cars. |
| Household Employees Management | Organizing household staff operations. |
| Charitable Contributions/Philanthropy | Managing philanthropy and charitable donations. |
| Activity Type | Service Description |
| Tax Affairs | Managing complex compliance, filings, and registrations. |
| Legal Affairs | Handling legal matters and compliance. |
| Security Measures | Implementing physical and digital security protocols. |
| Digital Security and Privacy | Managing digital presence and cybersecurity. |
| Disaster Preparedness | Developing emergency plans and risk assessment. |
| Estate Planning and Administration | Managing estate logistics, including execution of wills and trusts. |
| Risk Management | Identifying and managing financial risks. |
Remark: Outsourcing services to our Swiss team, which includes experienced lawyers, bankers (former CFO and CRO of Swiss banks), and bank auditors, can eliminate the need for hiring in-house specialists for these functions.
There are no requirements.
| Requirement | Details |
| KYC Documentation | Passport and proof of address required |
In Switzerland, Multi-Family Offices involved in managing financial affairs often choose not to manage their clients’ wealth in-house.
This approach stems from strategic decisions aimed at leveraging external expertise and accessing a broader range of financial instruments and markets.
Typically, these offices coordinate and oversee financial management through partnerships with specialized external professionals or institutions. There are two primary reasons for this approach:
This model of operation not only mitigates financial and operational risks but also enhances the quality of financial management.
By outsourcing, Multi-Family Offices can ensure that their clients benefit from top-tier financial strategies and insights, which might be difficult to replicate with an in-house team. The focus thus remains on strategic oversight and coordination, providing families with tailored financial solutions that meet their complex needs while aligning with regulatory standards.
Remark a financial family office can also handle nonfinancial activities mentioned above
Often referred to as the “Swiss Army Knife” of Swiss finance, an SRO (Self-Regulatory Organization) supervised company is versatile, capable of undertaking a broad range of activities while being less cumbersome to manage compared to a Swiss Portfolio licensed company. This option provides a streamlined approach to regulatory compliance, making it an attractive choice for family offices seeking to provide diverse financial services.
This setup option is both economical and straightforward to implement, offering an efficient solution for family offices seeking to manage a diverse array of financial services without the complexity typically associated with extensive regulatory frameworks.
| Activity Type | Activity Description |
| Receiving/Holding Client Funds | The office can receive and hold client funds up to 60 days for specific purposes such as real estate purchases or investments in gold and other precious metals. This service is ideal for clients looking to make significant, secure investments through trusted channels. |
| Money Remittance and Exchange Services | Enables the office to offer financial transaction services, including currency exchange and remittance services, facilitating global financial transactions for clients. |
| Issuance of White-Labelled Debit Cards | The family office can issue debit cards white-labelled under its own name, providing a seamless and branded payment solution to its clients. |
| Escrow Services | Providing escrow services for transactions involving real estate or cryptocurrencies, enhancing client trust and transaction security. Ensures that all funds are kept safe until transaction conditions are fully met. |
| In-House Financial Advisory | Having an in-house advisor under SRO/FINMA supervision allows the office to offer tailored financial advice directly, ensuring that all investment strategies align closely with the clients’ personal and financial goals. |
| Bank Wealth Management Referral | The family office refers clients to asset management companies or private banks to manage their wealth. The Family office will have a fee-sharing agreement with the Wealth Management company or the bank, allowing it to earn fees on wealth management activities without bearing the costs and risks associated with direct management. |
Shareholder/Director Requirements
Shareholder do not need financial background. Director should have financial, law, accounting, IT background.
| Requirement | Details |
| KYC Documentation | Passport and proof of address required |
| Criminal Record | Blank criminal record |
| Curriculum Vitae | Showing education and professional experience |
| Diploma if any | Copies of diplomas if any |
Remark: Director and Shareholders must not have been bankrupt and have a good internet reputation. Cannot be Political Exposed Persons.
How To Set Up a Swiss Multi-Family Office that manage directly the assets of its clients.
A portfolio license is needed only for family offices and financial institutions in Switzerland that aim to manage client wealth internally.
This license is specifically designed for entities looking to manage discretionary management of client portfolios, provide investment advice, and undertake asset allocation and risk management within their own operations.
Opting for a portfolio license enables these offices to maintain direct control over financial strategies and client assets, offering a higher degree of customization and personalization in wealth management services. The following details will outline the various options available for obtaining a portfolio license, suitable for entities intent on conducting in-depth and firsthand financial management.
| License Type | Price | Comments |
| Asset Manager in Switzerland | Discretionary management of client portfolios, offering investment advice, asset allocation, and risk management. No limitation on the amount of assets under management. | |
| Limited Fund Manager | Benefits from the ‘De Minimis’ rule, allowing management of funds below certain thresholds with a portfolio license. | |
| – Leveraged assets under management of less than CHF 100 million. | ||
| – Unleveraged funds, with no redemption rights exercisable for five years, and assets under management below CHF 500 million. | ||
| Ready Made Portfolio License Operating Companies | Ready-made entities available for immediate operation. |
| Role | KYC Requirements | Qualification Requirements |
| Shareholder | Valid passport or national ID. Proof of address (recent utility bill or bank statement). Source of funds declaration. Background check documentation. | No specific educational or professional qualifications required. Must meet the legal age for holding shares according to local laws. Must comply with the legal capacities as specified in jurisdictional company laws. |
| Director | – Valid passport or national ID. Proof of address (recent utility bill or bank statement). Professional resume/CV. Background check documentation. Declaration of any potential conflicts of interest. | Typically requires a certain level of educational background, often in business management or related fields. Experience in business management or specific industry experience related to the company’s field. Understanding of corporate governance and compliance obligations. Must be legally capable of holding office according to local laws. |
If you buy a ready made SRO or Portfolio Ready Made company for the purpose of running your Multi Family Office please note that there are several upgrade available
| Service Type | Key Functions | Regulatory & Operational Details |
| Trust Management | – Management of trust assets in accordance with the trust deed.<br>- Fulfillment of the trust’s purposes.<br>- Acting in the best interests of the beneficiaries. | – FINMA Trustee License: Required for managing multiple trusts. Compliance: Each trust must be managed according to its specific terms. Conflict of Interest Management: Must manage potential conflicts of interest to ensure fair and independent treatment of each trust. Fiduciary Duties: Trustees hold a legal title and must manage assets for the beneficiaries’ benefit. Investment Management: Involves making investment decisions based on the trust terms. |
| Swiss CISA Fund License | – Management, distribution, and administration of collective investment schemes (e.g., mutual funds, investment funds). | Compliance with CISA: Ensures operation within the legal framework. LIMITED Qualified Investor Funds (L-QIFs): Increased Flexibility: No FINMA approval required, allowing for innovative investment strategies. Increased Speed to Market: Rapid market entry due to bypassing regulatory approvals. Lower Costs: Reduced regulatory and administrative expenses. Access to Qualified Investors: Broad investor base in Switzerland; retail investors can opt-in by signing a letter. Tax Efficiency: Benefits from Switzerland’s favorable tax regime. |
We hope that this presentation on How To Set Up a Swiss Multi-Family Office, has comprehensively addressed all of your questions regarding the key activities, services, and regulatory requirements associated with a multi-family office providing both non-financial and financial activities. Please do not hesitate to contact us if you want our assistance in setting up your Swiss Multi Family Office at connect@swissfintechpro.com
