At present, its contribution to the income of product consignment is limited.
On May 17, 2021, China Merchants Bank and Bain jointly released the 2021 China Private Wealth Report.
Therefore, in addition to covering and serving the personal business of these customers, they will actually cooperate closely with the investment banking business to strive to cover the needs of customers and enterprises…
However, at present, this kind of business still needs the cooperation between securities companies and trust companies, mainly to meet the needs of customers.
Chinese reporters from securities companies learned that many securities companies, including CITIC Securities, CICC, China Merchants Securities and Societe Generale Securities, especially the head securities companies, have already launched family trust services in the high net worth wealth market.
Tax planning.
1.
After the new regulations on asset management, the trust industry is also accelerating its return to the main business, and family trust is one of the service trust businesses with the original characteristics of trust.
It needs to cooperate with a third-party trust company, which can be understood as a customized product consignment service for high-end customers.
However, a private banking business person of a securities firm told the Chinese reporter of the securities firm that the family trust business is not the strength of the securities firm.
With the continuous growth of the asset scale of China’s high net worth population and the return of the trust industry to its origin, more and more securities companies began to set foot in the family trust business.
The report shows that in 2020, the number of Chinese high net worth people with investable assets of more than 10 million yuan will reach 2.62 million; It is estimated that by the end of 2021, the number of high net worth people in China is expected to be close to 3 million, and the total scale of investable assets will exceed 90 trillion.
Privacy protection: after the establishment of the family trust plan, the property will be classified under the trust, which can protect the privacy of customers very well; 4.
“Although the global epidemic has not yet ended, thanks to China’s long-term steady economic growth and the continuous accumulation of wealth among mainland residents, the demand of high net worth people to deal with intergenerational inheritance is expected to continue to grow.” “The domestic trust law has been continuously improved and improved.” Gao Hui, head of wealth management department of UBS Securities, said that at the macro level, with the implementation of CRS (common reporting standard) and AEOI (financial account information exchange), the wealth information of domestic and foreign customers is becoming more and more transparent.
In this context, including CITIC Securities, CICC, China Merchants Securities and industrial securities, many securities companies, especially the head securities companies, have already launched family trust services in the high net worth wealth market.
Meeting customer needs is the core motivation.
This service actually makes little contribution to profits, mainly to meet the needs of high net worth customers and enhance user stickiness.
Wealth is passed down from generation to generation, so as to achieve fixed distribution and directional distribution; 3.
According to public data, in January 2022, the scale of family trust in China’s trust industry increased by 12.899 billion yuan, an increase of 33.54% over the previous month, a new high in nearly a year.
“Family trust is one of the most popular ways for high net worth people in the world to inherit family wealth,” said LV Zijie, head of UBS wealth management in China.
As securities companies have investment banking business lines, their high net worth and ultra-high net worth customers are mainly entrepreneurs.
The rise of the new rich group of the younger generation has also prompted the family trust to be concerned and accepted by more high net worth people.
The first foreign-funded securities firm to enter China’s high net worth population has continued to grow in asset scale, which is pushing up the demand for family trusts.
“We have observed that Chinese high net worth customers have now entered the stage of intergenerational inheritance, and their inheritance needs are very similar to those experienced overseas.” Gao Hui said that in this context, more and more Chinese high net worth customers began to pay attention to family trust, hoping to realize the following four needs.
Asset isolation, enterprise and life isolation, and children’s personal property isolation; 2.
On March 30, UBS Securities announced that it officially launched domestic family trust information services and other related programs to high net worth customers in mainland China, which is the first time that domestic and foreign securities companies have launched such services.