China needs inheritance planners
Inheritance planning could offer financial services providers in China a significant business opportunity given only half of wealth managers that target high net worth investors offer the product currently, according to data and analytics company, GlobalData.
With a substantial entrepreneur community, 71 per cent of whom are 51 years old or above, a large number of Chinese business owners would need to find successors in the coming years.
Senior wealth management analyst at GlobalData, Heike van den Hoevel, said the lack of a detailed succession plan puts the continuity of an entire business at risk.
“The situation also represents a missed opportunity for wealth managers to build ties with the next generation early on, which is important given the propensity for individuals to change advisors at the time of inheritance,” said Hoevel.
GlobalData estimated that in addition to the 106,500 business owners who had already hit retirement, another 219,500 would retire within the next ten years.
“If providers fail to ensure the continuation of the relationship with successors, this will amount to a significant chunk of their current business being lost.”
AUTHOR
Anastasia Santoreneos
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
