A majority of the industry responding to the SFC’s proposal on “enhancing industry regulation” were against introducing the fee-based model in Hong Kong.
When Asia’s regulators eventually replace the commission-based wealth management model with a fee-based one, what could be the fallout for asset managers? Ben Cherrington, head of intermediary channels in Asia Pacific at M&G Investments, shares some key changes in the UK, which decided to make the leap to fee-based in 2013.
About 75% of Hong Kong’s financial advisers acknowledge a trend toward fee-based wealth management, according to a Vanguard survey report.
Hong Kong investors opt for a commission-based model, while more mainland peers prefer a fee-based one, according to a Hong Kong Investment Funds Association survey.
Global flows into exchange-traded funds may be steadily rising, but ETF usage is lagging among wealthy clients in Asia, according to Roger Bacon, Asia-Pacific head of managed investments at Citi Private Bank.
The mutual recognition of funds (MRF) initiative will eventually result in a wave of ETF houses bringing products to Hong Kong, said Toby Bland, chief executive of Enhanced Investment Products in Hong Kong.