Vincent Chui, chief executive, Morgan Stanley Asia International shares his views with Asian Private Banker in the ‘Final Word’, a ten-part series where the industry’s leaders share their thoughts and opinions on key issues around industry trends, business performance, investment solutions, regulations and compliance, and technology.
Industry trends | How important is it for your business to make substantial inroads in China to ensure sustainability and growth over the next decade?
Onshore China wealth management opportunities continue to be a secular opportunity, but over the next couple of years, the offshore coverage model with strict compliance to the rules of the road will continue to be the norm among international private banks. Those who are prepared to go onshore need to focus on acquiring talent around compliance, risk, and AML as well as developing the right kind of products for onshore customers. In addition, they will need to be mindful of the high degree of digital sophistication of onshore customers — an area where most international private banks are less advanced than the online wealth platforms in China.
Regulations & Compliance | What’s the essential tool you have or are planning to create that will help your firm tackle the uptick in regulatory stringency and scrutiny? Do you think that the compliance costs of your business have peaked?
Regtech is a critical area for regulators and banks to explore and deploy to improve their effectiveness, efficiency, and productivity, but it is not clear how fast such technology can evolve and be ready to substitute the vast amount of labour and paper being consumed in the governance process. Meanwhile, compliance costs on a per-RM basis have probably peaked but will likely stay at a high level for the time being given the regulatory and risk management frameworks banks are subject to.
Regulations & Compliance | Are you satisfied with how regulators interact and solicit the industry for feedback?
Regulators in Hong Kong and Singapore have been very proactive and constructive in their interaction with banks within their ambit. There is constant formal and informal dialogue shaping the regulatory framework and regulations in these private banking hubs.
Meet 2018’s industry leaders in the full round up of of Asian Private Banker‘s the Final Word 2018.