ING changing tack in the mainland
REGULATORY ISSUES ARE preventing ING Financial Planning from selling its financial advisory services in the mainland. But it is looking at another avenue for generating business - through offering administrative and IT support to Chinese insurers, securities firms and banks.
'There is a huge opportunity in China to assist those involved with wealth management, such as banks and securities houses, that does not involve us selling our products and services. It's just providing the administrative platform. The only strategy we have [for China] is to work with institutions to help them with their onshore business by providing IT and administrative services. We see this happening after 12 months,' said Phil Neilson, managing director at ING Financial Planning in Hong Kong.
The company recently put in resources and effort to enhance its service platform, launching ING Private Portfolio Service, a comprehensive Web-based multi-currency, multilingual platform for use by financial advisers.
The platform consists of the adviser workbench, which provides a financial planning wizard, independent research and portfolio construction; the nominee service for holding clients' assets in custody; and a system for managing the commission accounting for all transactions.
Initial users of the platform are ING's in-house team of financial advisers, although the company is looking to offer this product to international financial advisers and corporations.
'The platform has two main benefits. Firstly, it automates client contact and keeps a record of advice processes, which is hugely important should there be a complaint or enquiry from a compliance and regulatory point of view.
'Secondly, it's a way of moving financial advisers into a world where remuneration comes from ongoing services,' Mr Neilson said.
