This is in addition to the financial institutions with activities in the private/retail banking, investment and insurance sectors serving the affluent individuals segment.

But despite more players muscling into the regional finance sector, all indications are that there is plenty of untapped profit to be made.

The wealth management industry also indirectly supports many jobs through links with providers of other financial services - for example, stockbrokers and independent financial planners. The outsourcing of the middle and back office functions is a growing trend.

One of Hong Kong's fastest-growing wealth management solutions of choice is investment-linked products offered through insurance companies and banking firms.

According to the Office of the Commissioner of Insurance, investment-linked business grew by nearly 50 per cent last year compared with 2005.

More than HK$30 billion of new investment-linked business was generated in the first three quarters of last year.

Bruno Lee Kam-wing, HSBC's head of wealth management and personal financial services Asia-Pacific, said investment-linked products provided investors with a double-edged advantage - the protection of a life insurance plan and the flexibility of an investment.

'The nature of these products also provides investors with greater opportunities for financial gain, as well as the freedom to choose their investment instruments, depending on their risk appetite,' Mr Lee said.

However, despite the rapid growth of wealth management services, providers realise they still have a huge market to tap into. A survey commissioned by Manulife (International) last November found that most Hong Kong people were financially underprepared for retirement.

Sixty-two per cent of the 500 respondents expressed concerns over unexpected health-care costs in their retirement, and 56 per cent were worried that their income could not keep pace with inflation. However, only 29 per cent had formulated a plan with their regular income and two-thirds of them said they wanted little risk in their retirement investment.

In a similar study carried out by HSBC involving 2,700 respondents, 80 per cent of people were worried that they would not have enough money to cover their retirement years. The survey also found that 38 per cent had made no preparations for their retirement.

Another key finding was that the average target amount for retirement set by respondents is HK$5 million. On average, people expect to save for 18 years before retirement. They also expect to start saving when they reach the age of 45. Concern about an ageing population with insufficient financial support was one reason why the government introduced the Mandatory Provident Fund (MPF) scheme seven years ago.

Derek Young, chief executive at ipac Asia, which operates as an advice-paid financial planning enterprise, said one of the growing issues was the advice-paid versus commission-paid aspect of the financial planning industry.

In Hong Kong most wealth management providers are remunerated by commissions received from the investment products they sell.

Mr Young said the possible risk with such an approach was that the interests of the client might not always be aligned with those of the financial planner or adviser. In extreme cases, commission-bias could cause financial planners or advisers to recommend a product that paid a high commission rather than the best investment opportunity.

'The key to providing the best client-focused service depends on a range of factors, including what the client expects and formulating a plan that can realistically achieve the client's aims,' Mr Young said.

Acquiring a full understanding of these needs takes time and providing realistic solutions is the task of the financial planner who needs to work closely with the client.

Mr Young recommended that investors ask their financial planner how they were paid.

'If I were a client, I would want to know how they are remunerated. Is the compensation structure linked to things that matter to me as a client rather than things that matter to the bank, financial planner or wealth management adviser?'

To ensure they were not getting a raw deal, clients should be regularly updated on the performance of their portfolio against agreed benchmarks, Mr Young said. They should also ascertain early on in the procedure what risk measures were used to gauge this performance.

According to Angeline Chin, chief executive at the Institute of Financial Planners of Hong Kong (IFPHK), there is a growing interest among financial planners in behavioural finance and the psychology of wealth management.

Behavioural finance applies scientific research on human and social cognitive and emotional biases to better understand economic decisions and how they affect market prices, returns and the allocation of resources.

Ms Chin said this could benefit investors, who could have their plans developed more accurately to address their financial appetites and personal goals.

Another trend, from the investor's perspective, is a heightened concern about retirement planning. Ms Chin believed was the result of increased public awareness campaigns organised by the financial planners institute, the MPF Authority and various regulators.

'Together, we have been educating the public to plan ahead for retirement, taking into account the rising cost of medical treatment and inflation,' Ms Chin said.

Strong feelings towards retirement planning issues had been revealed in the IFPHK consumer sentiment survey and continued to be a primary concern, especially among an ageing population.

To encourage formal financial planning education in universities, the IFPHK is studying the possibility of starting a scholarship with local academic institutions that offer a major in financial planning.

In a further effort to boost consumer protection the IFPHK has launched an online Certified Financial Planner (CFP) Register of CFP certificates registered with the institute.

The register aims to eliminate cases of fraud or uncertified practitioners posing as certified ones, and provide the public with an easy means to check credentials.

Ms Chin said international recognition and global standardisation of the CFP certification was one of the biggest undertakings for IFPHK.

'We believe the CFP certification programme is one of the best ways of keeping Hong Kong's financial planning industry in line with international standards,' Ms Chin said.