Hong Kong has all the chances to become the world’s leading fund distribution centre, but the lack of strong IFA (Independent Financial Adviser) industry and the concentration of sales channels in banking sector question if it could really happen.
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Credit: Abdul |
The size of Hong Kong’s market is another reason why it can be quite challenging to become the global fund distribution centre. Some experts believe that Hong Kong needs to grow via the sale of funds to overseas investors. Launched in July 2015 MRF enables funds to be sold into China laying the foundation for the strengthening of financial and regulatory ties between the two.
Client on-boarding is also viewed as quite costly and discouraging to investors. The process often involves a direct identification process, which can be problematic for online platforms in particular. Therefore, the uptake of online platforms has been quicker in more developed markets.
Despite these challenges, Asian market is considered to be very attractive with its economic power, growing pension funds, and an increasing number of high net worth individuals.
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