Jersey Finance surveyed the views of wealth management and professional services experts working across Greater China, Hong Kong and Singapore.

Family disputes and loss of control are the key issues in Chinese succession planning, according to a new Jersey Finance research paper.

The new research published by Jersey Finance, titled How to service Chinese wealth as it goes global, gathered the views of wealth management and professional services experts working across Greater China, Hong Kong and Singapore.

Jersey Finance’s report highlighted that high net worth and ultra-high net worth individuals in Mainland China are failing to address a number of challenges which could cause longer-term pressures on their succession plans.

The key aspects of the research were:
- Nearly half of respondents (47 per cent) said legacy planning is the key consideration for Mainland Chinese families, but 41 per cent of respondents say family disputes are most likely to derail estate/succession planning.
- Nearly two thirds (59 per cent) say misconceptions about issues and solutions are a top factor holding them back with wealth transition.  
- A large proportion of respondents (88 per cent) say the biggest misconception Chinese families have with wealth structuring is a loss of control.

The survey concluded by stating that financial advisors should target the next generation, many of whom have been educated overseas and who tend to be more understanding of the wealth preservation process.

It also said that advisors need to be aware of and comply with the new global standards on regulation including MiFID II.

“Succession planning is a thorny issue that can sometimes take years for a wealthy individual and their family to address, even though it is one that will not go away,” said Geoff Cook, chief executive of Jersey Finance. “In recent years there has been an explosive growth in the understanding of wealth structuring and transition among China’s HNWs, which has led to an increased demand for the services of wealth management practitioners. As a consequence, Jersey has seen an increased demand from those practitioners for the full suite of wealth management services needed to serve the unique needs of Chinese wealthy individuals and to capitalise on market opportunities."