Wealth Management Connect now in the “home stretch”: SFC
The scheme will allow cross-boundary investment in wealth products of banks in the Greater Bay Area.
The launch of the Wealth Management Connect scheme in the Greater Bay Area (GBA) is near, as the Securities and Futures Commission (SFC) announced it is already in its final stages.
“Another priority for the SFC over the past year has been working closely with the Hong Kong Monetary Authority and Mainland authorities to prepare for the launch of the long-awaited Wealth Management Connect scheme,” Julia Leung, SFC Deputy CEO and Executive Director, Intermediaries, said.
“I am happy to report that we are now in the home stretch.”
Leung was speaking at the Hong Kong Investment Funds Association’s 14th Annual Conference, themed “Change and resilience: Fund management in the new normal.”
The Wealth Management Connect scheme is an arrangement that allows residents to carry out cross-boundary investment in wealth management products offered by banks in the GBA.
Leung said that this will open opportunities for expansion, in terms of sale as well as in setting up fund platform. She noted that SFC has observed a growing interest in open-ended fund companies amongst other public and private funds.
“The long-awaited Wealth Management Connect Scheme opens up tremendous opportunities, but cross-border distribution to GBA residents will pose serious challenges for banks in Hong Kong,” Leung said.
She added banks in Hong Kong might need to level up to match retail investors from Mainland who are used to a service that is “very mobile, cost-effective.”