Trust industry to remain stable amidst market headwinds

The report found that regulatory developments are increasing confidence.

Hong Kong's trust industry is poised for growth as Asia's growing private wealth sector and industry credibility are underpinning a positive outlook for the market, according to a Hong Kong Trustees' Association and KPMG survey.

The report found that regulatory developments are increasing confidence and enhancing investor protection with 64% of respondents saying the regulatory regime is conducive to business, compared with 51% in 2021.

However, new regulations are also proving to be challenging to implement. Almost two-thirds (64%) reported that compliance costs had increased by 5% to 15% over the past 12 months.

Moreover, attracting talent was also seen as a significant industry headwind, with legal and compliance roles and trust administration as the two most critical functions.

Further, 24% identified Chinese Mainland and Greater Bay Area connectivity initiatives, such as Wealth Management Connect as the most significant growth engines over the next few years.

Additionally, 18% selected the Capital Investment Entrant Scheme, and similar initiatives focused on family offices and philanthropy.