Brian Harrison Spence, of HSP Consulting, looks at how Southeast Asia’s offshore financial advice market is growing, but structurally inconsistent, and is now entering a transition toward more standardised and sustainable practices.
Many expats and advisers operating across Southeast Asia sense the advice market is approaching a period of meaningful change.
For years, the region has offered significant opportunity. Growing expatriate populations, increasing personal wealth, and relatively light regulatory environments have allowed advisory businesses to expand quickly. Yet with that growth has come increasing complexity – and, in some cases, structural weakness.
The question now is whether the market is prepared for what comes next.
A market still finding its structure
Unlike more established advice markets such as the UK or Australia, the offshore advice sector in Southeast Asia remains less standardised.
Business models vary widely. Some firms operate on a fee-based advisory model, while others remain heavily reliant on commission-based product sales. Regulatory frameworks differ significantly between jurisdictions, and in some cases remain limited in scope.
This lack of consistency can create confusion for clients and challenges for firms seeking to build long-term, sustainable businesses.
The question of client ownership
One of the most important structural issues facing the market is the question of client ownership.
In more developed advice markets, clients typically belong to the firm rather than the individual adviser. This provides continuity, stability, and long-term value within the business.
In contrast, parts of the offshore market still operate with a more individualised model, where relationships sit primarily with the adviser. While this can work in the short term, it can create challenges around succession planning, valuation, and long-term client servicing.
As the market matures, this is likely to become an increasingly important consideration.
Business models under pressure
A further area of focus is how advisory firms are paid.
Commission-based models, particularly those involving indemnity payments, can create future liabilities and uncertainty. As markets evolve, there is likely to be greater scrutiny of how advisers are remunerated and how this aligns with client outcomes.
Firms that can demonstrate clear, transparent, and sustainable revenue models will be better positioned as expectations increase.
The role of regulation
While Southeast Asia is not a single regulatory environment, there are signs that standards are gradually tightening in certain jurisdictions.
This does not necessarily mean a direct replication of frameworks such as the UK’s Retail Distribution Review, but the direction of travel appears clear. Greater transparency, improved client outcomes, and stronger governance are likely to shape the next phase of development.
Advisory firms that anticipate these changes, rather than react to them, will be better placed to adapt.
A period of transition
Taken together, these factors suggest that the offshore advice market may be entering a period of transition.
This is not a negative development. Periods of change often create opportunity — particularly for firms that are willing to review their structure, strengthen their proposition, and align themselves with emerging expectations.
For advisers operating in Southeast Asia, the key question is not whether change will come, but whether they are prepared for it.
Brian Harrison Spence is the founding partner of HSP Consulting, advising expats across Vietnam and Southeast Asia
