What are the first names that come to mind when considering financial hubs in Asia Pacific? Hong Kong, Singapore, Shanghai, Sydney, Tokyo? But could we be about to add… Kaohsiung to that list? If the Taiwanese government has anything to do with it, we might be. Emboldened by an artificial intelligence (AI) and semiconductor boom, and promising a series of […]

The post Deep Dive: Why cultural Kaohsiung could be the next frontier for wealth management appeared first on Asian Private Banker.

Law firms in Hong Kong and Singapore have identified private wealth as a growth area amid huge inflows of mainland Chinese capital, and with more clients seeking wealth protection and succession planning services in an increasingly volatile world. The great wealth transfer in Asia has prompted some law firms to form a dedicated team with full services to clients, add […]

The post Private wealth business booms for Asia law firms amid IPO slump appeared first on Asian Private Banker.

Significant ETF inflows and the rapid development of the semiconductor industry are fuelling positive sentiment for Taiwan’s wealth market, industry experts told Asian Private Banker. A surge in demand for chips needed to fuel the global artificial intelligence boom has powered the island’s TAIEX index, one of the world’s best-performing stock markets in 2024, filling the coffers of Taiwan’s UHNW […]

The post Taiwan wealth market “impossible not to talk about” as AI boom fuels inflows appeared first on Asian Private Banker.

A sweeping change to tax rules in Thailand could drive more of the Southeast Asian country’s burgeoning wealth into the hands of foreign private banks and asset managers, according to bankers and lawyers. Starting 1 January 2024, Thai residents who intend to bring foreign-sourced income into the country have to pay personal income tax of up to 35% upon remittance, […]

The post Global private banks eye Thai windfall after sweeping tax change appeared first on Asian Private Banker.

Private banks and asset managers frustrated by China’s stringent cross-border data sharing controls could see light at the end of the tunnel, as governments in Shanghai and the Greater Bay Area (GBA) look to loosen data transfer restrictions to win back foreign firms. Moving data out of China has been a headache for global asset managers seeking to tap the […]

The post China set to ease data transfer rules: Here’s how PBs and AMs can benefit appeared first on Asian Private Banker.

Asset management firms striving to crack China’s multi-trillion dollar wealth market are eagerly awaiting the arrival of new regulatory rules on the cross-border transfer of data, as the cost of compliance weighs heavily on their businesses. Caught up in heightened US-China tensions, international asset managers with China-based businesses have been pouring more time and money into data compliance ever since […]

The post Data: The biggest headache for fund managers in China’s US$12tn wealth market? appeared first on Asian Private Banker.

In this round-up: Ambiguities remain in Hong Kong, Singapore schemes to stop “rolling bad apples”; Minimum global corporate tax could benefit “jurisdictions with substance” such as Singapore and Hong Kong; Banks welcome further clarity on Wealth Connect scheme; Hong Kong provides subsidies for setting up open-ended fund companies and REITs; Singapore continues to see strong demand for fintech and front […]

The post May Regulatory Round-up: Next steps in HK, SG mandatory reference check schemes; Minimum global corporate tax could benefit “jurisdictions with substance” such as SG and HK; Banks welcome further clarity on Wealth Connect appeared first on Asian Private Banker.

A global minimum corporate tax regime could benefit wealth management centres such as Hong Kong and Singapore, because they are “jurisdictions with substance” that would maintain a lower corporate tax rate, even if a global minimum corporate tax rate becomes effective. US President Joe Biden’s support for a global minimum corporate tax rate, as proposed by the OECD, has trained […]

The post As “jurisdictions with substance”, WM hubs such as HK and SG could gain from global minimum corporate tax rate appeared first on Asian Private Banker.

How should private banks prioritise their regulatory/compliance agenda in 2021, after a year weighed down by a pandemic? Early in 2021, Asian Private Banker invited financial regulatory experts from different firms to share their take on the year that was and their views on what regulatory developments in the region private banks can expect. The experts anticipate that regulators in […]

The post PBs should prepare for stronger regulatory emphasis on compliance in 2021 appeared first on Asian Private Banker.

November began with the suspension of Ant Group’s dual listing in Shanghai and Hong Kong. At US$37 billion, it would have been the world’s largest IPO. A day earlier, Beijing had proposed rules that Chinese licensed microlenders operating online must front at least 30% of any loan they make along with financial institutions. Opinions have been divided about the issue. […]

The post November Regulatory Round-up: Ant IPO suspension may signal private sector retreat; SFC reassures FIs on US sanctions vs. NSL; MAS 2021 enforcement focus may shift to PB appeared first on Asian Private Banker.

Tax incentives for repatriated funds, the COVID-19 pandemic, and a complicating geopolitical landscape have provided Taiwan’s onshore wealth management scene with some momentum but, truth be told, only a small portion of offshore assets have returned to Taiwan. Most have remained in offshore banking units (OBUs), Singapore, and Hong Kong. “Around 60% of the repatriated funds come from businesses, and […]

The post Tax amnesty alone may be “insufficient” to lure Taiwan HNWIs’ assets onshore appeared first on Asian Private Banker.

Mainland China has made it easier for foreign institutions to invest in the domestic bond market and has reached an agreement with Hong Kong for the cross-listing of ETFs. Hong Kong has finally enacted its Limited Partnership Fund regime. China eases access by foreign investors to bond markets The National Interbank Funding Center (NIFC), a sub-institution affiliated to the People’s Bank of […]

The post August Regulatory Round-up: China opens bond market to foreigners; HK launches Limited Partnership Fund regime; HK security law may clash with US sanctions appeared first on Asian Private Banker.

It looks as though the stars are aligning for Taiwan’s onshore wealth management market. A number of unrelated events are prompting Taiwanese HNWIs to reconsider whether it makes sense to keep their wealth offshore or whether an onshore structure is more beneficial. Since the start of the COVID-19 pandemic, Taiwan’s success in containing its spread has prompted wealthy offshore Taiwanese […]

The post Taiwan lures offshore assets, pushes onshore wealth management appeared first on Asian Private Banker.

The upcoming thematic review on spread charges and fee disclosure will accelerate private banks’ record-keeping overhaul in customised trading agreements. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) announced the commencement of a concurrent thematic review in the second half of this year to assess how intermediaries process spread charges and their disclosure of trading […]

The post Upcoming thematic review in Hong Kong spurs overhaul of PB recording for bespoke deals appeared first on Asian Private Banker.

As the COVID-19 outbreak is gaining a wider footprint across the world, there are employers who prefer their staff to return to the office, out of concern that extending the work from home (WFH) arrangements may impede productivity. Employees for their part — reluctant to expose themselves to a potentially hazardous commute and office environment — are unsure what rights […]

The post Banks grapple with employment issues in COVID-19 crisis appeared first on Asian Private Banker.

The Hong Kong government and the Office of the Privacy Commissioner for Personal Data (PCPD) are jointly considering amendments to the Personal Data (Privacy) Ordinance (PDPO) with a view to strengthening the protection of personal data in Hong Kong. On 13 January 2020, the Constitutional and Mainland Affairs Bureau published a paper that was discussed at the Legislative Council Panel […]

The post Stronger data protection would increase risk of non-compliance for businesses in Hong Kong appeared first on Asian Private Banker.

Compared to their counterparts in Hong Kong and Singapore, Swiss regulators have been noticeably less proactive, possibly to the detriment of the country’s reputation in the long term, an insider told Asian Private Banker. Contrary to the prevalent view that regulatory progress stems from the West and flows East, Christoph Kurth, partner at Baker McKenzie and former global head investigations […]

The post Switzerland lags Asian finance centres in terms of regulatory proactivity appeared first on Asian Private Banker.

Students enduring exam season weren’t the only ones feeling the heat in June. Following an on-site inspection in October and November last year, the Financial Action Task Force (FATF) released Hong Kong’s initial evaluation, in which the organisation recognised the hub as having a “strong legal foundation” to support effective action against money laundering and terrorist financing, but said it […]

The post June Regulatory Round-up: New FAQs on suitability requirements; SFC fines Credit Suisse for disclosure misconduct; FATF releases HK AML evaluation appeared first on Asian Private Banker.

Over the course of May, Asian Private Banker reached out to banks and consultants who are increasingly preoccupied with diverging cross-border regulations, demanding misconduct reports, and an ever-increasing need to improve banking culture and conduct. Ashley Alder, CEO of the Securities and Futures Commission (SFC) and the chairman of the Board of the International Organisation of Securities Commissions (IOSCO), said inconsistent […]

The post May Regulatory Round-up: “Vague” rules cause compliance complications; Concerns over new misconduct reporting laws; Revamp fintech, processes to achieve compliance appeared first on Asian Private Banker.

Across jurisdictions, vague tax regulations have created compliance challenges for HNWIs and their advisors, according to Michael Olesnicky, senior consultant at Baker McKenzie. “Nothing particularly stunning happened with respect to regulatory developments in Asia over the last year, except for the introduction of the new individual income tax law in China,” Olesnicky told Asian Private Banker, sharing his takeaway from the […]

The post “Vague” new tax rules raise compliance concerns appeared first on Asian Private Banker.

Although asset management firms will have their hands full implementing the amendments made to the Securities and Futures Commission’s (SFC) Code of Unit Trusts and Mutual Funds (UT Code), the changes will result in more unified disclosure standards and improve transparency and comparability, according to industry professionals. Implemented on 1 January 2019, the SFC’s recently revised UT Code offers a 12-month transition […]

The post Revised UT Code unifies disclosure standards of SFC-authorised products appeared first on Asian Private Banker.

Historically, market downturns have led to an increase in misselling claims, so as the industry prepares for the possibility of slowed growth in 2019, proper banking culture-related compliance and/or senior level accountability are likely to top the agendas of the region’s regulators, according to lawyers from five separate firms. “The market in 2019 may well see slower growth. That being […]

The post 2019 regulatory outlook: What’s in store for Asia’s private banks? appeared first on Asian Private Banker.

2018 marks a decade since the Global Financial Crisis (GFC) — when watchdogs learnt a painful lesson about lax financial regulations and the need for stringency and transparency. Since then, regulators have endeavoured to eradicate misselling from both a regulatory and enforcement perspective as well as establish bank resolution regimes in order to prevent future crises. Here are some regulatory […]

The post Key regulatory trends in 2018 appeared first on Asian Private Banker.

November was another busy month for regulators in the region, with financial watchdogs announcing new initiatives in fintech and fund regulations, and tax authorities revamping laws and implementing amnesty schemes. The month kicked off with the Securities and Futures Commission (SFC) issuing guidance on how it will regulate virtual assets under the existing regulatory framework. The watchdog limited access to crypto-asset […]

The post November Regulatory Round-up: New tax initiatives in China and Malaysia; SFC implements FMCC; regulators introduce several fintech rules appeared first on Asian Private Banker.

During his Budget 2019 speech, Lim Guan Eng, Malaysia’s finance minister, announced a new tax amnesty scheme through which the government aims to lure taxpayers into voluntarily disclosing outstanding taxes. Although some experts liken the new scheme to an extension of an olive branch that taxpayers should seize, others predict that sensitivity concerns will slow the programme’s progress. According to […]

The post Mixed reception for Malaysia’s new tax amnesty rules appeared first on Asian Private Banker.

As artificial intelligence (AI) applications become increasingly pervasive amongst financial institutions across the globe, a chasm has opened up between the uptake of AI and the governance and regulations of such technologies, according to a research report released by law firm Baker McKenzie, based on a survey of 355 senior executives in the financial services sector. More than half (52%) […]

The post Legal and ethical frameworks need to catch up with AI: Baker McKenzie appeared first on Asian Private Banker.

The offline suitability requirements recently published by Hong Kong regulators could prompt intermediaries to narrow the scope of available execution-only transactions to avoid onerous suitability checks, thereby limiting the investment choices open to private clients. In order to create a level playing field between online and offline transactions of investment products, the Securities and Futures Commission (SFC) published the consultation conclusion […]

The post New offline suitability rules in Hong Kong may limit investor choice appeared first on Asian Private Banker.

The senior management accountability programme proposed by the Singapore regulator would cast a “much larger net” in terms of types of companies and number of staff covered under the regime when compared to Hong Kong, said a legal specialist. Monetary Authority of Singapore (MAS) launched a consultation on a series of guidelines around senior management accountability and advocating “a culture […]

The post Singapore casts a “much larger net” on senior management accountability than Hong Kong appeared first on Asian Private Banker.

Private banks designing online suitability checks for complex products are in a “tricky” situation due to the ambiguity of the recently published Securities and Futures Commission (SFC) consultation conclusion on guidelines for online distribution and advisory platforms, a legal expert has warned. The conclusion, published by the Hong Kong regulator last month, includes a ‘non-exhaustive’ list of complex and non-complex products […]

The post SFC suitability checks for complex products “a tricky area” appeared first on Asian Private Banker.

Financial institutions should pay attention to the upcoming update on the European Union data privacy regulation, even if they are Asia-based, lawyers have warned. A new version of the General Data Protection Regulation (GDPR) is due to be implemented on 25 May this year. As it comes into effect, legal experts say Asian banks should be prepared for the new law’s […]

The post Asian banks should pay attention to new EU privacy laws, lawyers warn appeared first on Asian Private Banker.

Although specialists have suggested that MiFID II could trigger broad-ranging impacts for the industry, the Private Wealth Management Association (PWMA) points out that international firms have yet to apply MiFID II standards across the board. “Not all international firms with a significant regional presence are choosing to apply MiFID II in situations where it isn’t required in Asia,” said Peter […]

The post PWMA: Not all international banks are applying MiFID II in Asia appeared first on Asian Private Banker.

Regulators across multiple jurisdictions are demanding additional disclosure when it comes to customer due diligence for anti-money laundering or counter terrorist financing purposes, points out Baker McKenzie in its latest client alert note. Following multiple global data-leak incidents, including Panama Papers, the Russian Laundromat scheme and, most recently, Paradise Papers, watchdogs are requesting more transparency when it comes to the beneficial ownership of […]

The post Financial regulators aligned on need for greater disclosure following data leaks appeared first on Asian Private Banker.

Private banks in Asia have concerns about client classification and the need to charge fees for financial advice, but MiFID II won’t cause major structural changes to the private banking industry, a lawyer at Baker & McKenzie tells Asian Private Banker. The European Union’s (EU) new regulations, MiFID II – a revamped version of the Markets in Financial Instruments Directive […]

The post More clarity, greater notice required on MiFID II changes appeared first on Asian Private Banker.

China may have taken “significant steps” towards enforceable data protection, but the generally piecemeal approach adopted by authorities is making compliance difficult, lawyers tell Asian Private Banker. In June, cybersecurity laws were enacted so that the applicable scope of “network operators” includes “financial institutions that collect citizens’ personal information and provide online services” – thus affecting private banks that offer online services for […]

The post China’s “piecemeal” approach to data protection making life difficult for banks: lawyers appeared first on Asian Private Banker.

Amendments to Hong Kong’s tax legislation were presented to the Legislative Council yesterday, paving the way for the city to enter into multilateral tax cooperation agreements. “The chief executive in Council currently does not have powers under the Inland Revenue Ordinance to give effect to multilateral agreements or arrangements for international tax cooperation,” law firm Baker McKenzie said in a […]

The post Hong Kong a step closer to entering multilateral tax transparency network appeared first on Asian Private Banker.

A former legal head at UBS Wealth Management in Asia is set to join Baker McKenzie, the law firm said in a statement. Christoph Kurth will join Baker McKenzie in Zurich as a partner and head of compliance and investigations, and will take office by 1 October. Kurth was previously general counsel for UBS Wealth Management in the Asia Pacific […]

The post Former UBS WM general counsel for Asia to join law firm appeared first on Asian Private Banker.

China’s new cyber security rules, which were implemented on 1 June, are causing “lots of confusion”, says Baker McKenzie partner Nancy Leigh, who believes that companies should not make “any drastic changes” to their data infrastructure until further clarity is provided. “Basically there are still so many holes [in the regulations],” Leigh said at the Hong Kong Technology Conference last Friday. […]

The post Confusion abounds as China enforces new cyber security rules, says law firm appeared first on Asian Private Banker.

Banks should be cognisant of data protection and the scope of liability when harnessing big data and artificial intelligence (AI), says Adrian Lawrence, partner at Baker McKenzie. Lawrence said at the Hong Kong Technology Conference today that regulators may look to distinguish between anonymous data that is only used for data analytics, and data that is personally identifiable. “Data protection is […]

The post Data protection and liability in focus as banks adopt AI, says law firm appeared first on Asian Private Banker.

The wave of global tax changes aimed at improving compliance and transparency “is far more radical than in any other period of time in history”, says Richard Weisman, international tax partner at Baker McKenzie in Hong Kong. Private banks and high net worth individuals are grappling with a raft of new tax laws around the world, including the Foreign Account […]

The post Changes to tax landscape more extreme “than any period in history”, says tax specialist appeared first on Asian Private Banker.

The Securities and Futures Commission’s (SFC) new client suitability clause comes into effect today, despite lingering uncertainties relating to the definition of ‘solicitation’ and how the rules apply to ‘execution-only’ accounts at private banks, lawyers tell Asian Private Banker. After 18 months of preparations, legal experts believe that all the repapering and training needed for the smooth implementation of the […]

The post New suitability requirements enforced with questions unanswered, say lawyers appeared first on Asian Private Banker.

Financial institutions should reassess the selling processes of their frontline staff in light of recent guidance on suitability obligations from Hong Kong regulators, according to law firm Baker McKenzie. The firm encourages banks to ensure that their frontline staff – relationship managers in the case of private banks – are clear in their communications with clients about the circumstances in […]

The post Banks should revisit frontline selling processes to ensure compliance with suitability requirements, advises law firm appeared first on Asian Private Banker.

The Hong Kong government is considering expanding its list of reportable jurisdictions for the Automatic Exchange of Information (AEOI) and this will impact those financial institutions that have thus far taken a “narrow approach” to the CRS regime, Richard Weisman, international tax partner at Baker & McKenzie in Hong Kong, tells Asian Private Banker. Currently, Hong Kong has just two […]

The post HK private banks must “rapidly expand” AEOI compliance approach, as govt eyes new reporting partners appeared first on Asian Private Banker.

In three months, SFC will enforce a new client suitability clause in Hong Kong. Will it impact the number of mis-selling claims? Will it change the way relationship managers (RMs) recommend products to their clients?  Legal experts weigh in. The new clause, that seeks to formalise the product recommendation process, was first introduced in a circular from the SFC in […]

The post SFC’s incoming client suitability clause: the impact on mis-selling claims and on RM selling processes appeared first on Asian Private Banker.

Two law firms in Asia were heavily involved in advising both ABN AMRO and LGT before the deal was announced yesterday. Baker & McKenzie counselled LGT Group on its agreement with ABN AMRO to acquire the Dutch private bank’s business in Asia and the Middle East, while Clifford Chance advised ABN AMRO, according to statements from both law firms. The […]

The post LGT-ABN AMRO deal involved two law firms appeared first on Asian Private Banker.

Private banks may become inundated with “a mess” of duplicate and superfluous information when the common reporting standard (CRS) regime comes into force, warns Dawn Quek, principal at law firm Baker & McKenzie, who says that matters could become especially complicated when a family trust structure involves multiple parties linked to multiple jurisdictions.  Under CRS, the new global standard for the Automatic […]

The post CRS likely to have messy impact on private banks warns legal expert appeared first on Asian Private Banker.

Law firms across Asia are noticing an uptick in business as nerves get the better of Asia’s private banks and HNWIs alike. “We have received a number of calls from private banks and individual clients seeking our views on the impact of Brexit and the options for managing this unprecedented situation,” Paul Moloney, a Hong Kong-based lawyer at Eversheds tells […]

The post Lawyers in demand as private banks and investors seek Brexit clarity appeared first on Asian Private Banker.

While most private banks have put in place their Foreign Account Taxpayer Compliance Act (FATCA) compliance regimes, many are still struggling to meet the stringent requirements of the automatic exchange of information (AEOI) Act, says Richard Weisman, a US tax partner at Baker and McKenzie. “Private banking operations in Asia are learning and borrowing from compliance programmes developed in jurisdictions […]

The post Automatic exchange of information demands sending PBs scrambling appeared first on Asian Private Banker.

Regulatory technology – or regtech – is being rapidly adopted by financial institutions and regulators struggling to keep pace with shifts in the regulatory landscape, lawyers at Baker and McKenzie said at a media roundtable in Hong Kong today. “The monetisation of data has given rise to regtech from two perspectives,” said Astrid Raetze, partner, banking and finance (Sydney) from Baker and […]

The post Banks, regulators increasingly turning to regtech, says law firm appeared first on Asian Private Banker.

Compliance is, to put it nicely, a real headache for Asia’s private banks. Lawyers suggest that one way to better avoid legal pitfalls is to change the way deals are done. They also tell Asian Private Banker that compulsory information exchange – a global trend aimed at combating tax evasion and terrorist financing – erodes the banker’s common law duty […]

The post In the eye of the storm appeared first on Asian Private Banker.

The Hong Kong government has announced a public consultation process on the latest proposals to bring Common Reporting Standard (CRS) to Hong Kong. The consultation will last until 30 June, and members of the public and industry are invited to submit their views on aspects in the new regulations. Topics include the scope of the financial institutions involved, reporting requirements, […]

The post Public consultation for tax law appeared first on Asian Private Banker.

The US Treasury has finally laid bare the mechanics behind the “Model 2” intergovernmental agreement (IGA), which countries including Switzerland and Japan have signed on the US Foreign Account Tax Compliance Act (FATCA). Whereas the original “Model 1” IGA requires a “FATCA Partner” government to collect information from Foreign Financial Institutions (FFIs) located within their jurisdiction and to report this […]

The post IRS reveals details of “Model 2” IGA, Hong Kong eyes options appeared first on Asian Private Banker.

Private banks can heave a sigh of relief as the US Treasury and Internal Revenue Service (IRS) has revised timetables for the completion of due diligence and other requirements under the Foreign Account Tax Compliance Act (FATCA). “This announcement provides more time for financial institutions to prepare for FATCA which will be very welcome by financial institutions worldwide,” says Richard […]

The post More time on the clock as IRS modifies FATCA timelines appeared first on Asian Private Banker.

US-headquartered Brown Brothers Harriman (BBH), a service provider to private banks in Asia, is distributing a unique product underpinned by a series of Memorandums of Understanding with the IRS in the United States that ensures a private bank that complies with the EW-8 system, is in fact compliant with the IRS guidelines. Termed EW-8 – after the W-8 Internal Revenue […]

The post EW8: A silver bullet for Asia’s FATCA woes? appeared first on Asian Private Banker.

“In our practice, we see a lot of private clients avoid jurisdictions that have been portrayed negatively on the press,” says Dawn Quek, senior associate in tax and wealth management practice with Baker&McKenzie.Wong & Leow, commenting on the MAS’ decision to crackdown on tax evaders. “It’s becoming a global trend for clients to look to bank in jurisdictions with substance […]

The post MAS crackdown on tax evasion could see money inflow appeared first on Asian Private Banker.

In an effort to better attract foreign investors, Hong Kong has revamped its company law, which could lead to greater staff productivity and decreased costs in accounting controls and systems. This will undoubtedly simplify and encourage the continued development of businesses across industries, including private banking whose strained bottom lines caused by costs in compliance and IT could use some […]

The post Hong Kong’s modernisation of company law could help private banks cut costs appeared first on Asian Private Banker.

“In 30 years of practice, I’ve never set up a Hong Kong trust other than for charities,” says Michael Olesnicky, partner and trust practitioner at Baker & McKenzie, highlighting the archaic and inconvenient regulatory framework governing trusts registered in Hong Kong. “Hong Kong is a major trusts centre, but it’s used more as a venue for managing offshore trusts and […]

The post Hong Kong’s tenuous trust laws get modern makeover appeared first on Asian Private Banker.

“FATCA should be among the highest priority agenda items for all global private banks in 2012 and 2013,” says Richard Weisman, tax partner based in the Hong Kong office of Baker & McKenzie and head of Baker & McKenzie’s global tax practice group. “Dealing appropriately with the compliance obligations imposed by FATCA is critically important for the wealth management industry […]

The post Who’s afraid of FATCA: Private banks in Asia shrug off fears appeared first on Asian Private Banker.

If there was any doubt regarding the seriousness of the US Treasury’s intent to mop up taxes from wealthy but errant citizens, the latest intergovernmental agreement (IGA) should conclusively put these to rest. The IGA expands on an in-principle agreement first announced by the US in February between itself and the UK, France, Germany, Italy and Spain. In June, Japan […]

The post UK, Switzerland, Japan align with US on FATCA, Hong Kong and Singapore still to decide appeared first on Asian Private Banker.