Financial advisers must look north as banks monopolise Hong Kong

Veteran Chan Mau-fung founded Grandeur Financial with two partners in 1998, after 21 years in the trade. He admits he once hoped Hong Kong’s independent financial advisers (IFAs) could grow into scaled institutions like their Western peers, offering retirement protection services — but Hong Kong lacked the preconditions.

Why is IFA life hard in Hong Kong?

Banks monopolise insurance, securities, MPF and other wealth services. Bank advisers hold clients’ financial data; ordinary IFA firms can’t compete. Two decades as a Hong Kong IFA brought little satisfaction.

Why look north?

The mainland IFA market should develop more healthily — no single banking group dominates. Chan’s firm entered the mainland years ago, building clients bit by bit through websites and seminars, and now has offices in four cities. The secret: the “Hong Kong brand” — Hongkongers’ biggest mainland advantage is credibility and trustworthiness.

What’s next?

Localisation: train mainland talent with Hong Kong experience to sell mainland products. Mainland financial products — mutual funds, private funds, trust products — run into the trillions of yuan per category, dwarfing Hong Kong’s retail fund market. Chinese clients’ needs will be mainland products; offshore ones are transitional. He once sought mainland JV partners, but building relationships takes years and cost him dearly in “tuition fees” — he went solo in the end.

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