The advisers were responding to polls conducted at International Adviser’s Future Advisory Forum Hong Kong last week.
They were asked, ‘With the remit of the Insurance Authority extending to advisers within the next two years, how much of an impact will that have on your business?’
They were given four options: Considerable, Moderate, Minimal, Don’t Know.
A small majority (35%) said Considerable, with 32% believing it will have a Moderate impact. Of the remainder, 19% believe it will have a minimal impact while 14% Don’t Know.
Regulatory impact
The assembled advisers were also polled asked, ‘How much do you think regulatory and legislative changes will impact your business over the next 12 months?’
Nearly half (48%) responded that they expect a Moderate impact, with 38% believing their businesses will be Significantly hit by regulatory and legislative changes.
Tellingly, none of the respondents said they think there will be No Impact, while 14% think any changes will have a Minimal influence.
Advisory businesses in Hong Kong have been hit with two guidance notes (GN) in recent years that have seen a large number of advisers leave the market.
The regulatory changes have already seen a sharp decrease in the number of investment linked assurance schemes (Ilas) sold in the special administrative region.
