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Independent Wealth Management Forum 2019 HK - Exclusive Insights - Jessica Cutrera

Jessica Cutrera of Capital Company

Oct 28, 2019

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1. What does the Independent Asset Management industry in Hong Kong look like today and what’s the outlook for the industry given recent challenges?

Video transcript

1. What does the Independent Asset Management industry in Hong Kong look like today and what’s the outlook for the industry given recent challenges?

One of the main opportunities for independent asset managers is simply the growth in the industry. So when we started our firm 10 years ago, people didn't know what an independent asset manager was. So, in terms of attracting clients, developing partnerships with other businesses, the first hurdle was simply explaining your place in the market and the advantages of working with an independent. Now, as that space has grown dramatically, there are more independent asset management firms, more clients are choosing to work with independents. The business model is much more well known. So when you have a conversation about the advantages of working with an independent manager or why you might want to choose a manager, most people have become familiar with the concept. So just to that general awareness I think really creates an opportunity for firms to go out and find more business, to bring over more clients. The shifting regulatory environment has sometimes made big institutions less flexible, or less willing to take certain clients, meaning smaller clients, US Citizens. There are sometimes more barriers to entry into traditional private banking, and I think that also creates an opportunity for an independent business model. Certainly, in terms of challenges, the changing regulatory landscape can be difficult for a smaller firm who doesn't have three compliance officers and an entire team dedicated to that function. Now fortunately, because the industry's grown, there are a lot of great resources for independents. But keeping up with change, I think particularly for small firms, is going to be really challenging. And you're already seeing that play out in terms of M&A activity in this space.

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