Ying Pakdeethai, Associate Director - Business Development from our Equiom Hong Kong office highlights the main reasons why Hong Kong is an ideal wealth management location for Thai high net worths.
With a favourable business environment and regulatory framework, Hong Kong is a sound choice for wealth management. Here are the top 3 reasons why:
- Dynamic Business Environment: Hong Kong offers a massive pool of talent in the professional and financial service industries. Strong infrastructure, low tax policy and highly stringent regulations are key driving forces behind Hong Kong’s position as a leading international wealth management centre. This is evidenced by a) Hong Kong’s transformation into a top IPO destination, and b) the continuing growth in volume of private wealth from Mainland China and throughout Asia being managed in Hong Kong.
- Modernised Trustee Ordinance: in its effort to remain competitive in the wealth management industry, Hong Kong had its trust laws revamped in 2013 to make it an even more attractive jurisdiction for long-term asset management.
- New licensing regime: this came into effect for trust and company service providers in March 2018 and ensures that standards within the industry are consistent and in accordance with best international practice.
Planning is crucial. Given the fact that a significant portion of Thai wealth is tied up in the family business and Thai residents are faced with local inheritance laws, planning ahead is a must to ensure that wealth is protected and family legacies are preserved.