The average Strabens Hall client has over $10m (£6.5m, €8.8m) in assets, and Benskin says being able to advise on a wide scope of areas has opened up a lot of business opportunities.
“Whereas some firms are very product-led, our client pays a fee for our time and we go out and solve problems for them.”
Benskin says product-led firms might struggle to remould because they are reliant on a particular income stream.
One thing that sets Strabens Hall aside from other Hong Kong IFA firms is that it was established as a fully-fledged fee-based business from day one.
The way forward
“When we found out about the ban on indemnity commission at the end of last year, it was around the time we had our applications in and we were so happy because we never believed indemnity commission was the way forward.”
“It was fantastic because it matched what we were saying we wanted to do. We have set up in an environment where we don’t have any legacy issues, so the ban on indemnity commission had zero impact on our business.
“I think there are very few firms that are providing financial advice and charging for that advice in Hong Kong. There is huge need for it, more so than in the UK.”
Expat clients make up around 80% of Strabens Hall’s clientele, the large proportion of those being British, European and Australian individuals, many of whom hold senior positions at blue-chip companies.
50-year milestone
Benskin points out that the vast majority of its clients have reached the 50-year milestone: “Someone who is in their 60s who has got a family and assets in multiple jurisdictions tend to need more advice than the younger clients.
“Older clients may need advice on arranging pensions and they may have inheritance tax issues and a trust structure in place, so there are a lot of different areas we can advise those clients on.
“We get a lot of referrals from accountants and solicitors where they are unable to solve problems for clients.”
Fresh-faced
But Strabens Hall clients also include expats moving from Asia to a higher tax jurisdiction who need advice on what to do with their assets and how to move them tax efficiently.
Capping the number of clients to 40 per adviser means Strabens Hall’s two advisers have a close relationship with their clients. At the minute, the fresh-faced company looks to grow by hiring more financial planners, while still keeping client numbers relatively small.
“We are looking to grow in Hong Kong but with the right sort of people, so ideally if we can recruit some more chartered financial planners then that would be ideal, but they are so far and few between in Asia.”
When it comes to growth opportunities, however, Benskin admits that the firm is unlikely to pursue acquisitions of other companies: “We have looked at some options but a lot of the businesses in Hong Kong have got quite few legacy issues.”
