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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
