“Overall I think that recruitment is more difficult and I have heard this from my peers too,” Parfitt added. “I think, if they had the choice, less experienced advisers would be more inclined to go to other markets where the restrictions in Hong Kong are not imposed upon on them.”
Further steps
Newcomer Strabens Hall, which was established almost a year ago, was able to set up the business to ensure it was in line with the new regulation and, rather than being remunerated by commission, charges clients a fee for the time spent on dealing with their advice.
“We felt this was the best way to completely align our interests with our clients and guarantee our independence,” said David Benskin, director of the firm’s office in Hong Kong.
Benskin said, however, that firms which have been reliant on contractual regular savings plans and unable to evolve their business models have either closed down or are trying to advise on London property or QROPS.
“Fortunately we have seen this product pretty much come to an end as a result of this ban, and we feel that the ban has been a fantastic development in the industry in Hong Kong.
“What would be great is if the regulator could take further steps to move towards a UK-style full RDR model.”
