Managing Director of our Singapore office, Karen O’Hanlon, joined fellow industry experts in an animated panel discussion at the Jersey Finance Asia Roadshow in Hong Kong last week.
During the roadshow, Jersey Finance unveiled findings based on a survey, conducted in partnership with Hubbis, of 60 wealth management and professional services practitioners across Hong Kong, Singapore and Mainland China.
The research revealed that 41% of respondents believe family disputes are most likely to derail estate/succession planning for People’s Republic of China (“PRC”) clients. On this topic Karen provided her thoughts on how to overcome estate planning challenges and the need to separately address the varying aspects of family wealth, including the financial, social and spiritual elements. Family governance and corporate governance were labelled as integral aspects to be considered when dealing with PRC clients.
The conversation around succession planning for PRC UHNW and HNW individuals was a key theme; panelists commented that due to the rise of divorce in Asia, the need to consider succession planning throughout the engagement of highly skilled advisors in this area is crucial.
In addition, 88% of survey respondents believe the biggest misconception PRC families have about wealth structuring is loss of control. All panelists agreed that when dealing with PRC clients a sense of security is a recurring theme in the industry.
With many PRC families now spread across the globe, education on cross-border wealth and succession planning among this cohort was shown to be a common challenge for panelists. It was agreed that education should be a focus, however allowing the client to maintain an element of control and awareness of multi-jurisdictional planning will be essential. Supporting this, 59% of survey respondents stated the top factor holding PRC clients back with wealth transition stems from misconceptions about the issues and solutions, thus demonstrating the need for greater education.
Karen joined the insightful discussion with lawyers from Herbert Smith Freehills and Berwin Leighton Paisner and a representative from a global corporate services provider.
Pictured: Karen O'Hanlon with An Kelles, Jersey Finance Business Development Director, Greater China