Wealth in Asia-Pacific has been growing exponentially. An increasing number of High Net Worth Individuals (HNWIs) in the region are seeking more sophisticated and integrated private banking services, in the hopes of harnessing or even enhancing the wealth for their families and future generations.
Among banks in Hong Kong, “private banking customer” is often defined as a customer with either:
a) at least US$1 million or its equivalent in any other currency in investable assets under management; or
b) at least US$3 million or its equivalent in any other currency in investable assets.
In addition to deposit and lending services, private banking customers often look for investment advice on a continuous basis, having regard to their entire portfolios or balance sheets. This is quite different from the retail banking market in which one-off transactions are common. Private bankers work alongside a team of investment consultants and specialists to provide customers with suitable solutions and products. Such solutions and products are usually available to corporate clients and institutional investors as well.
Estate planning is also a key business area within private banking. Bankers facilitate customers to preserve family businesses for the next generations, and to adopt plans to changing family circumstances. In some cases, bankers also may incorporate philanthropic strategy into the financial plans if their customers so wish.
In 2015, HKMA provided new guidance to the Private Wealth Management Association (PWMA) in implementing the Enhanced Competency Framework (ECF) for private wealth management practitioners. To be qualified as a Certified Private Wealth Professional (CPWP), practitioners with less than 10 years of relevant work experience are required to pass two examinations, namely Module 1 on technical, industry and product knowledge (40 training hours) and Module 2 on ethics and compliance (12 training hours).
To upkeep the CPWP certification, professionals are also required to fulfill not less than 10 hours of On-going Professional Training (OPT) annually.
Private Wealth Management Association:
http://pwma.org.hk
