UBS launches family trust solutions as wealth rises
UBS (China) Ltd has launched onshore family trust solutions for affluent Chinese clients, becoming the first foreign bank in China to provide such services.
China Daily reports that UBS has launched family trust solutions to meet the rise of wealth in China.
"We are glad to become the first foreign bank to launch onshore family trust services in China, providing local clients with solutions based on our wealth management principles of liquidity, longevity and legacy," said Zhang Qiong, president and head of wealth management at UBS (China) Ltd.
The launch of family trust solutions is an attempt to meet explosive demand for them in China, UBS said.
The company, wholly owned by Swiss banking giant UBS AG, will provide advisory services for high-net-worth households to help them pass down family wealth and cooperate with third-party trust companies to offer family trust solutions that integrate wealth preservation and transfer.
The business of family trusts has long been one of UBS' core overseas offerings, and the company hopes to leverage such expertise to serve Chinese clients, Zhang said.
"Thanks to China's steady economic recovery, there has been continued growth in the number and wealth of high-net-worth Chinese households that are increasingly interested in family trusts," she said.
China's emerging family trusts business segment has seen explosive growth in recent years, especially as the COVID-19-related uncertainties turbocharged high-net-worth families' demand for wealth preservation.
A regulatory environment that is favorable for the development of family trusts and has leveled the playing field for domestic and foreign players also drew the participation of the Swiss banking giant.
"Although China is still in the process of perfecting regulations and rules over the family trust industry, we have found that domestic and foreign industry players are treated equally without differences in regulation," Zhang said.
China has rolled out a series of laws and regulations to promote healthy development of family trusts. For instance, the Civil Code, which took effect earlier this year, has strengthened the legal framework for the industry, experts said.
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