Regulation will have a negative impact on wealth management operations in China said Crosby. e think it is a 20 to 25 percent implied tax on everything we do, so a big impact and it will effectively make certain businesses and certain products not profitable. /p>
But experts in Asian finance have refuted Crosby prediction that financial regulation in Asia is holding back nearly one quarter of wealth management growth. Bankers and experts have been arguing that there is no way one can say that all of Asia regulations are impeding growth by 20-25 percent, a huge number by any standards. The type of regulation, the financial institutions, and the existing compliance frameworks all play a major role in determining how the regulation aids or deters growth.
David Maude, an independent consultant who advises companies on private banking and wealth management, who has worked for Mckinsey & Company, told Asia Outbound that Crosby predictions seem implausible.
Twenty to twenty-five percent seems a bit high to me, Maude said. he impact will vary significantly depending on the specific type of regulation and, at the individual financial institution level, on things like business model, client base, geographic footprint and scale, as well as on existing compliance frameworks. In Asia, wealth management players are particularly affected by new investor-protection regimes (including conduct-of-business and product regulations), which tend to be national in scope. /p>
In Asia, the global wealth started in Japan, and then shifted to the four Asian dragons (Taiwan, Hong Kong, Singapore and South Korea) in the 1980s. In the 1990s, the center of wealth in Asia hobbled between Singapore and Hong Kong. But since the emergence of China, and its fast economic growth in the 20th century, the world wealth has been shifting not only from the four Asian dragons to China, but also from the West to China. Some are even beginning to see Shanghai becoming the next world economic center.
