JPMorgan Pte Bank sets up Singapore trust company

Singapore

JPMORGAN Private Bank on Thursday launched a trust company in Singapore to cater for its ultra-high net worth (UHNW) clients and their families, as wealth expansion in the region continues to outpace the rest of the world. This is its first trust company in Asia, outside of its existing two in the Bahamas and Delaware, US.

The move will enable the private bank to better meet the complex needs of the super-rich in Asia and serve a wider range of clients in "one of the fastest wealth-generating hubs in the world", said Kam Shing Kwang, chief executive of JPMorgan Private Bank in Asia and vice-chair of investment banking for Greater China, at a media briefing. "Many of our Asian clients are likely to migrate their trust from the Bahamas to Asia."

But aside from Asia, she said there has been growing interest from European clients looking to book their trusts here.

This comes as UHNW families now have members, businesses, and assets spread across the world and are looking for an ideal location to set up legal structures where they can protect their wealth and plan for succession. This demand is mostly fuelled by Asia, where much of the wealth is relatively new.

Singapore, with its status as a global financial centre, sophisticated legal framework, pro-business environment and large talent pool, is a "logical" place to be, said Ms Kam.

Plans for the Singapore trust company started in earnest after JPMorgan Private Bank established its Asian booking centre in Singapore about three years ago. It will be led by Ethan Chue, who has over 24 years of experience in the areas of trust, tax & wealth and estate planning. He will report to Martin Pollock, head of international trusts & estates at JPMorgan Private Bank.

Together with four trust officers and a dedicated trust compliance officer, the Singapore team will be supported by functions within the bank in Asia, US and Europe, as well as trust company colleagues in the Bahamas.

JPMorgan joins a list of about 60 other trust companies set up in Singapore, a sign of the strong competition faced in the wealth management arena here as banks fight for a slice of the pie. But JPMorgan is confident it has room to play as wealth creation in Asia continues to grow. The Asia Pacific has been driving global wealth expansion since 2011 with overall growth of 92 per cent, compared with the global pace of 62 per cent, according to Capgemini's World Wealth Report 2019.

Ms Kam pointed out that JPMorgan's differentiating factor is that it focuses on UHNW families with complex needs. "We don't try to be everything to everyone," she added.

One priority of the trust company is to work with clients and their families in the region to plan for succession, as many founders of family businesses are also looking to hand over the reins to the next generation.

Mr Chue said: "By having a presence in Asia, we can service our clients and their families in the region more efficiently, and be more proactive in working with them to anticipate changes and plan for succession to future generations."

The private bank is also keeping its door open on more booking centres and trust companies in Asia, such as in Hong Kong. While there are no plans in place yet, Ms Kam said the private bank would like to give its clients more options in Asia going forward.

Also on Thursday, JPMorgan Private Bank shared findings from its white paper on the impact of technological disruption on succession planning. About four in five family businesses expect to experience "significant change" to the way their business runs due to technological advancements in the next 10 years, with data analytics, artificial intelligence and online transactions ranked as top disruptors, the survey found.

In addition, three-quarters of next-generation leaders believe technology will support their family's wealth succession, with investing in new technologies (53 per cent) and professionalising management (41 per cent) as their top priorities.

Among the various sectors, financial services was found to be the most affected by tech disruptions, with real estate and construction the least impacted. The study polled 133 clients in Asia in 2018. About a third of respondents belong to the current generation of family business leaders and the rest from the next generation.

READ MORE: Family office advisers see rising interest in leaving HK