Oct/090
Singapore Private Banking Catching Up With Swiss Private Banking
Is it for real?
So Singapore private banking has experienced huge growth over the last 10 years or so. With 300Bn in managed wealth, Singapore is reckoned to manage 5% of worldwide private banking assets.
This has much to do with Singapore’s strict privacy laws, but also just as much to do with the rise in the number of millionaries throughout Asia.
Yet the mass exodus of assets from Switzerland to Singapore hasn’t happened yet. The Swiss stand strong with 25% of the world’s private wealth under their prudent guardianship. 5 times as much as the Singapore.
So what’s the deal? Keep reading this singapore private banking article.
Oct/090
Singapore Private Banking: Clients Prefer ´´Self-Directed´´ Investment
Every savvy investor knows that even the most trusted private bank is prone to plugging its own products. While some private banking clients are happy to take a back seat, more and more are looking to direct their own investments, and take responsibility for risks. This is the message coming from Singapore private banking investors, according to delegates at the Reuters Global Wealth Management Summit held this 5-7th October in international financial centres worldwide.
Singapore Private Banking - Clients Like To Be In The Driving Seat
Excellent financial advice equals financial peace of mind, ideally HNWI´s can invest in creating a secure and comfortable future for themselves and their families - but even investing with notable global private banks might not fulfill that need. Fortunately, by the end of this article you will know exactly how to get private banking that´s not fueled by over-priced, under-performing products.
According to analysts, big banks like UBS are not operating the correct business model, particularly within the Asian market. A focus on product sales rather than improving advice and portfolio performance leads to a failure to build long-term client relationships.
“The challenge is to provide real quality advice that will make the difference,” says Justin Ong, head of PricewaterhouseCoopers’ Asia Pacific wealth management in Singapore.
Instead, offshore private banking needs to put more resources into providing top notch trust and estate planning services, a market with great potential for growth as first generation Asian entrepreneurs age, analysts say.
“The challenge is to provide real quality advice that will make the difference,” said Ong.
Additionally Asian clients are looking to make their own decisions regarding FX and the stockmarkets.
“It is very common for us in Asia to have a client who is CEO of a large corporation or a billionaire who takes personal decisions in FX or trades FX actively or trades fixed-income or whatever he is investing in,” said Debashish Dutta Gupta, Citigroup head of investments for Asia-Pacific wealth management.
More standalone, streamlined private banking services are popping up to fill the demand. One example is Capital Conservator, which offers private bank accounts in multiple-currencies with trading facilities, promising total privacy and total investor control. An important benefit is that Capital Conservator does not sell any of its own investment products, leaving the focus on pure banking. With a reasonable 1% entry rate, this self-directed private bank account, may well be the future of private banking.
Aug/090
Swiss Private Bank UBS Reveals 4,450 Private Bank Accounts To IRS
The Swiss government has agreed to lift bank secrecy on 4,450 private banking accounts in order to settle a tax evasion dispute with US authorities. The accounts as Swiss Private Bank UBS had been the subject of protracted legal wranglings.
Swiss Bank Secrecy - Still Gold Standard?
The IRS had alledged that up to 52′000 wealthy Americans were dodging taxes by parking funds in secret private accounts at the bank.
The Swiss government was resistant to handing over names of account holders since tax evasion is not a crime under Swiss law. It was argued that handing over confidential records without actual evidence of a crime would break Swiss bank secrecy laws.
However, in order to prevent continuing bad press both towards the Swiss government and UBS (in which the government has a stake), the Swiss agreed to hand over a certain number of clients, allowing the American government to save face at the same time.
This agreement prevents US authorities from gaining knowledge of every US account holder, but it is expected that the largest tax-evading accounts will be among those revealed.
While media are keen to signal the agreement as an “end” to swiss bank secrecy, it is only Swiss banks with US operations that were targeted in the IRS probe. Swiss private banks without US operations are under no compulsion to hand over confidential information except with proven evidence of crime.
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