Singpore, HK wealth managers may have to disclose fund fees

Both Hong Kong and Singapore are set to launch new disclosure rules for wealth managers regarding what they are paid by funds to sell their products - moves that are aimed at revealing conflicts of interest, but that could disrupt a business generating billions in fees.

Regulators are framing rules that will make such disclosures mandatory, said people with direct knowledge of the matter. Managers in the two Asian wealth hubs generally do not disclose overall revenues made from recommending funds to clients.

The moves could upend the existing model for fee-sharing between the funds and wealth managers, as clients might increase scrutiny of the products they buy in order to discern any conflicts of interest.


Nick Kalikajaros 2017