Expat Advisors Community members, Liana Allan from Migration Alliance, David Chin from Basis Point and Stacey Martin from NAB Private Wealth were recently interview by IFA magazine. Below are some key insights and you can read the full article here: IFA Magazine_SIV story.
The Significant Investor Visa (SIV) program presents a tremendous opportunity for the Australia’s financial services community. China is home to an estimated 400 billionaires and more than 90% of the SIV applicants are coming from mainland China.
Opportunities for Financial Advisors
HNW Chinese clients want to work with Australian HNW advisors who already service the HNW market in Australia, including private bankers and planners working with family offices. Not just to help them navigate the local investment market, but to gain access to strategic advice on tax, cash flow management and general guidance on the Australian financial landscape.
Guānxì 关系 is the Chinese philosophy of building trusted relationships. Learning about the cultural nuances takes time and requires a long-term approach. Many of these investors will also be interested in the relationships advisers can provide through their existing client bases and personal networks.
For those financial advisors looking to learn about doing business with a China-domiciled client base, Stacey Martin, NAB Private Wealth Specialist SIV Advisor and Asia Ambassador provides consulting services to provide support and expertise in this very niche area. It is also important to have Chinese language capabilities in-house to make it easy and minimise risks of misunderstandings.
Fee for Service
Conflicted remuneration is alive and well in the Chinese investment market, so an education process is necessary for Chinese investors who are unaccustomed to paying fees. It starts with an introductory cultural narrative articulating the Australian financial services regime with each professional from migration agent to financial advisor and accountant charging their own professional fees.
Migration Agents key to Investment Immigration
The migration agent relationship is paramount, otherwise it can be very difficult to access potential clients. Liana Allan of Migration Alliance says not only can a migration agent provide advisors with access to SIV investors, but advisors can help increase the prospects of a successful outcome with a properly executed, well thought out investment strategy. Access to other services, such as migrant banking, are also an important part of the story.
SIV Compliant Investments
A range of institutional and boutique fund managers have launched SIV Compliant products. In addition to NAB Asset Management funds, there are other complying investment opportunities on the NAB Private Wealth approved products list.
Opportunities in the Asian Century
For David Chin of Basis Point, the provision of advice to SIV investors is just one small aspect of the Asian financial planning opportunity. “China’s financial services industry is fast developing. There are opportunities to transfer Australian financial planning expertise to joint venture partners in China to develop their own financial services sector.”
Through this prism, the SIV advice opportunity may help open the doors to more collaboration between the two countries in the Asian Century. SIV has been a catalyst for cross-cultural exchange between Australia, China and south east Asia.
This article is in the July edition of IFA magazine for Australian financial planners which you can read at IFA Magazine_SIV story. If you would like to know more about how you can access these opportunities you can Contact Us.