A decade ago, the wealth management industry was dominated by the banks and External Asset Managers (EAMs) were virtually unknown in Asia.
With the increasing wealth in Asia, there is a growing base of young affluent clients looking for highly personalized client service. Such clients often turn to EAMs since the key advantage of using an EAM is the assurance of independence and the availability of a wider range of diversification options, including alternative investments and customised structured products. As such, the demand for EAMs has soared and the sector is still rapidly expanding.
While the EAMs is a booming sector and will be here to stay, establish and running an EAM is not for the faint-hearted.
Ignorance of the law is no excuse if you are operating a business without the appropriate permits and licenses required by the different government regulations. Before even setting up your EAM, the regulators would require business plans, policies and procedures to be presented to them before issuing licences to these potential fund management companies. From to regulatory filings to licenses; we can do the legwork (and the paperwork) to ensure that you comply. After all, we have successfully procured licences for many of our EAMs clients.
Once the licence is granted, the EAMs would then deal with key issues such as IT systems, risk managements systems and compliance.
Since the financial crisis, the regulators across the world have been aggressively tightening the regulatory requirements of the asset management industry. The obligation to be kept abreast and satisfy all these regulatory changes can be overwhelming for many of these EAMs.
We have helped many of our clients, not only ensure that their EAMs remain compliant, but have also helped implemented the use cost-efficient compliance software, in order to keep the teams coordinated, updated of recent developments and compliance practices in check so that they can focus on growing their business to new heights.