Wealth managers at the island's banks are facing increasing criticism over their habit of “churning” clients into new funds. It is fragmenting the industry's overall asset base.
The Securities and Futures Commission plans to make distributors declare the commissions they charge on funds, reflecting a global trend.
Private bankers are not expecting commission- or retrocession-free rules in Asia soon. Fee-for-advice is possible within a decade, but firms may need to package it with additional services.