TO safeguard against unnecessary risk, clients should diversify their funds, says Willem Pijpers, general manager of Internationale Nederlanden Bank (ING) in Hong Kong.
While the number of Hong Kong's high-net-worth clients was increasing, ING private banking customers usually only entrusted the bank with a portion of their wealth, he said.
This was because of the competitive nature of the industry.
'They will use other financial institutions to diversify funds, which makes a lot of sense, considering - in hindsight - the Barings Plc incident.' ING's acquisition of Barings Plc highlighted the Dutch banking giant's policy of 'think globally, act locally'.
Although it was difficult to show evidence, the number of wealthy people in Hong Kong was increasing along with investment opportunities, traditionally property and stock markets, Mr Pijpers said.
Hong Kong investors' love of the two markets, coupled with low tax rates, had meant some rich people ignored private banking products, such as offshore trust accounts, Mr Pijpers said.
