Private Wealth Management Association held its Second Annual Wealth Management Summit at the Hong Kong Convention and Exhibition Centre on 21 September 2017. The Summit, reflecting the mission of PWMA, aims to provide insights into key topics of interest to the industry and ultimately promote development of the industry and its professionals as well as advance Hong Kong’s status as a regional hub for wealth management.
The summit was extremely well attended, with more than 700 attendees comprising senior executives and practitioners from PWMA members firms as well as a handful of special guests from our partner organizations. The summit comprised of a welcoming and opening remarks, a keynote speech and panel discussions.
Summary of the keynote speeches and panel discussions
- Shared and discussed the findings of PWMA/PwC HK Wealth Management Report of 2017
- HK well positioned to capture opportunities in Wealth Management, with rising middle-class population in China and very high percentage of assets in cash/ retail banks today
- Good progress on mutual recognition of funds: 58 authorized, assets of 10b.
- Future initiatives being explored/ on the way to strengthen Hong Kong’s position as a leading global international financial centre: profit tax exemption for open-ended private and public, onshore and offshore funds, southbound bond connect, internationalization of RMB, BRI (infrastructure financing, project co listing, green/ Islamic financing), Greater Bay Area.
- Per Securities and Futures Commission survey, Hong Kong Wealth Management managed funds: HKD4.8t, year-over-year growth 16% growth.
- Should use FinTech to shape customer behavior, reduce risks and costs. So far nine banks with twenty two FinTech projects in experimental sandbox and eleven projects fully launched in market. HKMA is neutral to robo-advisor. Need to ensure robo do not unfairly prefer in-house products and robo has sufficient information about the customers.
- Risk culture: need to set correct tone from top, but also echo from the bottom (knows what is happening on the ground), appropriate incentive structure, whistle-blow framework etc.
- Initiated “Balanced and responsive supervisory” program: engage in dialogues with industry to achieve desired outcome.
- Do not see capital account relaxation in next 5-10 years, HK well positioned to continue as major center for offshore funds
- China needs structural economic reform to sustain growth, contract enforcement, private property protection. Expect actual dollar GDP of China to surpass US by 2021
- Securities and Futures Commission (“SFC”) considers suitability obligations to be equally applicable for on-line transactions
- Hong Kong Monetary Authority (“HKMA” )explores use of KYC utility, including passporting of CDD, streamlining legislation to cater for tech development, remote on-boarding of clients
- Big demand on RegTech in APAC but so far lacks breadth and depth
Family business and Next Gen panels:
- How family offices serve as a glue to keep Asian families together across generations
- NextGen clients view and how they select private bankers
- The Future of PWM into a world of mobile platforms and robo-advice
- CAs cannot be replaced by robo, client needs empathy, creativity to resolve problems, human accountability
Programme of WM Summit 2017
Amy Lo, Chairman, Executive Committee of Private Wealth Management Association; Chairman and Head Greater China, UBS Wealth Management, and Chief Executive, UBS Hong Kong Branch, Group Managing Director
The Honourable Paul MP Chan, GBM, GBS, MH, JP, Financial Secretary, The Government of the Hong Kong Special Administrative Region
|2:35pm||Reading the China Roadmap: Opportunities Amid New Policy Directions|
How might China’s policies such as “One Belt, One Road”, the Greater Bay Plan and the shift toward domestic consumption create new opportunities for development, investment and wealth creation? Speakers involved in analysing China’s economy, advising on its policies and investing in its future offer their perspectives and insight.
Moderator : Wendy Tsang, Vice Chairman, Executive Committee of Private Wealth Management Association and
Managing Director, Head of Private Banking, Bank of China (Hong Kong) Limited
– Franklin Lam, Founder, HKGolden50
– David YK Wong, PhD, GBS, BBS, JP, Chairman, Mandatory Provident Fund Schemes Authority
– Geng Xiao, Professor of Practice in Finance and Public Policy, School of Business and Faculty of Social Sciences, The University of Hong Kong
Arthur Yuen, JP, Deputy Chief Executive, Hong Kong Monetary Authority
|3:40pm||Family Businesses: The NextGen View|
An analysis of how family office can serve as a glue to keep Asian families together across generations, with a conversation about the priorities and challenges of the next generation within a successful family business.
Moderator : Professor Roger King, Founder & Director, Tanoto Center for Asian Family Business and Entrepreneurship Studies, HKUST; Founder & Director, Thompson Center for Business Case Studies, HKUST
– Philippe Bera, Chief Operating Officer, Omtis Group of Companies
– Justin Leong, Managing Partner and Chief Investment Officer, Alpha Goal International Limited
– Pamela Tung, Director for the Trans-Pacific and Trans-Atlantic Trades, Orient Overseas Container Line Limited
– Benny Wong, Vice President & Chief Financial Officer, Glory United Investment Limited
|4:20pm||Coffee Break & Networking|
|4:40pm||Fintech, Regulation and Regtech: Challenges and Solutions in Relation to Technological Innovation in Private Wealth Management|
The transition to a multi-platform world in which clients can access an ever wider range of financial services from their PCs and mobile devices is prompting regulators to institute new guidelines and rethink old ones. How do they strike the balance between investor protection and encouraging innovation? And how can new technological applications help lighten the regulatory burden and address concerns over rising compliance costs?
Moderator: Peter Stein, Managing Director, Private Wealth Management Association
– Henri Arslanian, FinTech & RegTech Lead, China/HK, PwC
– Christina Choi, Executive Director, Investment Products Division, Securities and Futures Commission, Hong Kong
– Meena Datwani, JP, Executive Director (Enforcement & AML), Hong Kong Monetary Authority
|5:25pm||The Future of Private Wealth Management: Perspectives From NextGen Professionals|
The future of private wealth management, as seen and experienced by young professionals who are living the transition into a world of mobile platforms, robo-advice and clients who communicate primarily through WeChat. What’s changing versus the traditional world of private banking their mentors lived through? What isn’t?
Moderator: Stefanie M. Hon, Managing Director, Senior Private Banker, Citi Private Bank
– Christopher Jones, Director, International Private Wealth, HSBC Private Banking
– Tom Lee, Director, Bank of Singapore
– Ronald Li, Director, Client Relationship Management, Bank of China (Hong Kong) Private Banking
– May Lim, Executive Director, Private Banking, Standard Chartered Bank
Peter Stein, Managing Director, Private Wealth Management Association
For more information about the 2016 Wealth Management Summit: