Highlights from the Wealth Management and Private Banking Asia Conference May 2017 in Hong Kong
Hong Kong | 26th May 2017
Many leading professionals from China & Asia-Pacific in private banks, family offices, wealth management institutions, trust companies, law firms and consulting firms attended the 2 days Wealth Management and Private Banking Asia Conference in Hong Kong on the 25th & 26th of May 2017.
Private Banking Trends
“Private banking is not a business that will succeed in a day,” said Huang Yanjun, Head of Global Private Banking for China Merchant Bank, one of the world’s fastest growing Private Bank.
According to the top 25 in Scorpio Partnership Global Private Banking Benchmark 2016, China Merchants Bank is ranked 20th with $192.9 billion AUM in 2015 while ICBC is ranked 23rd with $154.1 billion AUM in 2015.
On the Private Banking landscape in China, BCG Managing Director, Tammy Tan pointed that,”20 Chinese banks are already into Private Banking.”
” 20 Chinese banks are already into Private Banking “
Growth of HNWI & UHNWI
While the HNWI and UHNWI growth had been exhilarating, the inadequate growth of the talent pool in Private Banking industry continues to be a drag in the industry.
“Wealth is (also) getting much bigger – in hundreds of millions and billions,” said Macro Martin, Managing Partner for Harneys in his talk on Cayman Islands and Trust Licenses.
” Wealth is getting much bigger – in hundreds of millions and billions “
Anna Wong, Chairperson of the Private Wealth Management Steering Committee for HKSI in her presentation on “Comprehensive Training of Private Bankers” shared that “clients have a lot of wealth, but wants cash.” She highlighted a growing demand for wealth transfer solution, especially of the 1st generation business owner.
” clients have a lot of wealth, but wants cash “
“Private Banker and Investment Banker – Integrating Private Banking & Investment Banking capability,” and she elaborated further: “A lot of large Private Banks are doing wealth transfer, (but) how to transfer business asset into cash asset?”
More from Anna Wong, Chairperson of the Private Wealth Management Steering Committee for HKSI
- How to finding equity partner?
- Do they list the company?
- When is the right time to IPO?
- When is the right time to get foreign investor?
- How do they deal with family issues such as multiple marriages?
- What is the best way to manage children’s overseas education experience
- Where is the source of funds from clients? (AML, Terrorism)
- Is your interest to earn more commission or to give the best advice to your client?
- Are you acting in the best interest of your client?
In her concluding remarks, she emphasised “Private Banking is not for business accounts, and business transactions.”
Regulations, Tax, Information
John Wong, Partner of PwC in his presentation on “Influence on Wealth Management Market from Global Tax Transparency, everyone is thinking:”how to avoid CRS?”
He replied:”Almost no one can avoid CRS.” The main point is not CRS as China has a global tax policy and the country already have CDTA in place. (CDTA – Comprehensive Double Taxation Agreement).
“Information exchange is not necessarily only through CRS or FATCA. There are many tools or process to get the information. CRS is specifically targeted at financial institutions. In addition, identifying tax residency is complex. But the biggest worry of client is not tax,” he elaborated further.
- Private Banking Growth (China)
- Inadequate talent pool of UHWN & HNW Professionals
- Wealth Transfer Capabilities
- Global Regulations (Tax / Information / Privacy)
The key highlights of the conference centered around Private Banking growth in China, the talent pool to serve the needs of UHNW and HNW Individuals, the increasing need for wealth transfer solutions and global regulations.
In one of the highlight panel discussion on “How to run a sustainable Private Banking business in Asia”, Vice-President of Private Banking PingAn Bank Yu Qiang, brought up an interesting paradox the Private Banking industry has to deal with: “Ask who pays the salary of (a) Private Banker?”
“Who pays the salary of Private Banker?”
He emphasised “what a true Private Banker will say the client. The private bank is just a platform. He can move to another platform anytime.”
The discussion panel includes
- Alan Luk, Head of Private Banking and Trust Services of Hang Seng Bank
- Alvin Ma, Senior Managing Director & Head Private Banking of EFG Bank
- Yu Qiang, Vice President of Private Banking, PingAn Bank
- Lily Zhang, Product & Wealth Management Director of Private Banking Dept. of ICBC Asia
and moderated by Roger Wang, Vice President of Shine Consultant
The Wealth Management and Private Banking Asia Conference took place at the Sheraton Hong Kong Hotel & Towers in Hong Kong on 25 – 26 May 2017.
By Caproasia Online Editorial Team