The licence was granted by the Monetary Authority of Singapore – the City-state’s central bank and main financial regulator – and means the company can offer its non-contractual, International Investor Account product to clients from its base in Singapore.
SJP International has been operating as a Dublin based insurer for more than 20 years, offering SJP’s clients access to its International Investment Bond.
This new permission in Singapore follows SJP’s purchase of The Henley Group in June last year and is the latest stage in the company bringing its own “multi-tied” advice model to the region. It has already made another product, the International Investor Bond, available through its Shanghai office – an office also acquired when it bought The Henley Group last year.
In addition to Singapore and Shanghai, SJP also has a presence in Hong Kong through last years’ acquisition.
It is believed that SJP is only the second foreign company in about two years to have been granted a full insurance licence in Singapore since Standard Life received one in October 2012.
Through the International Investor Account, clients will have access to SJP’s range of funds, the management of which are outsourced to handpicked asset managers from around the world.
SJP’s entrance to the Asian markets comes at a time of considerable upheaval, with regulators in both Singapore and Hong Kong tightening the rules around the sale of more traditional contractual savings schemes.
At the beginning of this year, Hong Kong’s Office of the Commissioner of Insurance introduced a ban on indemnity commissions which are paid to advisers at the point an investment linked assurance scheme (ILAS) is sold to a consumer. The so-called GN15 regulations have also limited the investment funds available within those products to only those registered with the Securities and Futures Commission.
Meanwhile in Singapore, the industry is preparing for a raft of measures over the coming months governing, among other things, the sale of ILAS products, following the regulator’s expansive Financial Advisory Industry Review. These measures also include a restriction on how commissions are paid to consumers, as well as other initiatives to encourage a greater focus on long term client care.
“The wealth management profession in Singapore is going through some very positive changes and we see a number of similarities with the evolution of the industry in the UK in recent years,” said SJP’s Mike Gravestock, partnership support director.
“Whilst the growth of the business will be measured, over time we will look to use our experience to introduce products and services that offer true value for our clients.”
In its business update for the 12 months ended 31 December 2014, SJP reported that its funds under management had grown by 17% to reach £52bn.
