# Family Office Glossary: 40 Key Terms (2026) > A glossary of 40+ family office terms — from SFO and MFO to CRS, ESR and CIES — grouped by theme with plain definitions and links to in-depth guides. URL: https://www.china-family-office.com/en/articles/education-research/family-office-glossary/ Published: 2026-09-01 · by China Family Office Research Team The family office glossary is a quick-reference collection of the field’s core vocabulary. Terms are grouped by theme with plain definitions and links to in-depth guides, for family members and practitioners alike. The list is continuously updated — see the verified date at the end. ## Foundations ### Family Office (FO) A dedicated organisation managing a family’s investments, governance, succession and philanthropy — either a single family office (SFO) or a multi-family office (MFO). See [the Complete Guide](/articles/education-research/china-family-office-complete-guide-2026/). ### Single Family Office (SFO) Serves one family exclusively, typically established above US$100 million of investable assets; running costs about 0.5–1% of assets per year. ### Multi-Family Office (MFO) Serves several families with shared costs, charging about 0.2–0.5% of assets; suited to US$10–100 million. Compare in [SFO vs MFO: how to choose](/articles/education-research/sfo-vs-mfo-how-to-choose/). ### Virtual Family Office (VFO) An outsourced, asset-light structure combining investment, legal and tax services without a full-time team. ### Private Bank A bank’s wealth management arm for HNW clients, earning through product distribution — the seller-side counterpart to a family office’s buy-side role. See [Family Office vs Private Bank](/articles/education-research/family-office-vs-private-bank/). ## Trusts & succession ### Family Trust A legal arrangement where a settlor transfers assets to a trustee, who holds and manages them for beneficiaries — separating legal ownership from beneficial enjoyment. See [What Is a Family Trust?](/articles/education-research/what-is-family-trust/). ### Settlor The party who creates the trust and contributes assets, setting its terms in the deed. ### Trustee The party holding trust assets in law, owing fiduciary duties to manage prudently for beneficiaries. ### Beneficiary The person or charitable purpose enjoying the trust’s benefits. ### Trust Deed The core legal document establishing the trust’s terms — rights, distribution mechanics and trustee powers. ### Family Charter The manifesto defining family values, governance, decision mechanisms and wealth distribution rules. See [how to write a family charter](/articles/education-research/family-charter-how-to-write/). ### Discretionary Trust A trust where the trustee decides the timing and amounts of distributions — maximum flexibility. ### Fixed Trust A trust distributing benefits in fixed deed proportions — maximum certainty. ## Companies & structures ### BVI The British Virgin Islands — a Caribbean British Overseas Territory and one of the world’s largest offshore company registries. See [What Is BVI?](/articles/education-research/what-is-bvi-bvi-company-guide/). ### BVI Company A business company incorporated under the BVI Business Companies Act 2004, paying annual government licence fees rather than local income tax. ### Cayman Islands A Caribbean British Overseas Territory, a common domicile for funds and listing vehicles alongside BVI. ### Special Purpose Vehicle (SPV) A standalone legal entity created for a specific purpose — holding assets, isolating risk, project financing. ### Holding Company A parent entity owning shares of other companies, used to organise structures. ## Regulation & compliance ### Common Reporting Standard (CRS) The OECD standard for automatic exchange of financial account tax information — 100+ jurisdictions including BVI and Hong Kong participate. ### FATCA The US Foreign Account Tax Compliance Act, requiring institutions worldwide to report US taxpayers’ accounts — the forerunner of CRS. ### Economic Substance (ESR) Since 2019, offshore jurisdictions such as BVI require companies carrying on relevant activities to show real expenditure, premises and personnel. ### BOSS System The BVI Beneficial Ownership Secure Search system (2017): ownership data accessible to competent authorities only, not the public. ### AML / KYC The legal duty to verify client identity and source of funds and to monitor suspicious activity — the baseline compliance for account opening and operations. ## Tax & immigration ### Announcement No. 15 (offshore trust rules) Issued July 2026 by MOF and STA: offshore trust arrangements of Chinese tax residents are taxed at a uniform 20% from 1 January 2026, with no reductions. See China Family Office’s analysis and filing guide. ### New Capital Investment Entrant Scheme (CIES) Hong Kong’s investment immigration route for family capital; the 2025 Policy Address cut the residential threshold from HK$50m to HK$30m. ### 13O / 13U Singapore’s family office tax incentive schemes: 13O with an S$20m threshold, 13U with S$50m — the main counterpart to the Hong Kong path. ### Wealth Management Connect (WMC) The Greater Bay Area arrangement allowing residents to open and invest in each other’s wealth products — the policy infrastructure of GBA wealth management. ## Investing & markets ### Buy-side / Sell-side The buy side (families, family offices, asset managers) buys products and services; the sell side (investment banks, private banks) provides them — the family office acts as the buyer’s representative. See [Family Office vs Private Bank](/articles/education-research/family-office-vs-private-bank/). ### Impact Investing Investing that pursues financial returns alongside social and environmental goals — where family philanthropy meets investing. ### Asset Allocation The decision process of weighting investments across asset classes by objective and risk — the core of the Investment Policy Statement. ### Alternatives Asset classes beyond stocks and bonds: private equity, real estate, commodities, hedge funds — a major part of family office portfolios. ### Investment Policy Statement (IPS) The manifesto recording objectives, risk appetite, constraints and decision rules — usually paired with the family charter. ## Related guides For jurisdiction choice, see [Hong Kong vs Singapore](/articles/compare/hong-kong-vs-singapore-family-office-2026/); for joining, see [the membership guide](/articles/compare/membership-how-to-join-guide/); and see the [FAQ](/faq/). ## References - [BVI Financial Services Commission](https://www.bvifsc.vg) - [Ministry of Finance of China](https://www.mof.gov.cn) - [HK Government News](https://www.info.gov.hk) - [Research Nester family office market report](https://www.researchnester.com) --- Education & Research · China Family Office (https://www.china-family-office.com/en/)