Hong Kong regulator unveils private wealth management charter
Fair play is on its way as Hong Kong’s Private Wealth Management Association (PWMA) has adopted the “Treat Customers Fairly Charter for Private Wealth Management Industry”.
Developed by the Hong Kong Monetary Authority (HKMA) and the PWMA, the charter has five “high-level principles” and examples of measures to guide PWMA members in their implementation.
These five principles cover products and client services; key features, risks and terms; marketing materials and information; channels to submit claims and make complaints; and recognising that consumers also have responsibilities.
The aim is to inspire customers’ confidence and trust in the industry. HKMA says it expects all private banks to follow the charter.
Amy Lo, chairperson of the PWMA, says “commitment is key to nurturing clients’ trust and building a sound foundation for the continued growth of Hong Kong as a private wealth management hub”.
The charter now applies to all members of the PWMA, currently 47 firms in total. It is designed to complement, not change, current law or regulations or the existing terms and conditions between banks and their customers.
Elsewhere, HKMA has been innovative as it seeks to boost fintech in the region.
In March, Deloitte, HKMA and trade finance banks in Hong Kong developed a distributed ledger technology (DLT) proof of concept (PoC) for trade finance.
Last year, HKMA released its plans to launch a regulatory sandbox and innovation hub.