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.”
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.