HK Finance and Legal Professional Training Institute
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Ethics or Regulations Course - The AML, Client Privacy, Corruption Risk and Family Office
Module：From law and taxation perspective, analysing the competition and complementarity between family office, insurance, virtual assets and other unlisted investment products
Upon successful subscription, you can complete the course within 60 days, but you must complete it before end of the course period.
Recently, family office is definitely the hottest topic in the insurance industry.
With the issuance of the "Policy Statement on Developing Family Office Businesses in Hong Kong" in March 2023, the Hong Kong government has implemented a number of measures to attract high-net-worth individuals around the world to set up "family offices" in Hong Kong, encouraging them to achieve their goals of legacy planning and family governance in the city, which representing a great development opportunity for HK’s insurance industry.
In this context, participants in Hong Kong's insurance industry urgently need to understand the structure and functions of family offices, including relevant regulatory requirements such as those under the Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Bill 2022. This knowledge will help comprehending the needs of family offices and high-net-worth clients. Attendees of this course can therefore offer appropriate insurance products and advice, in compliance with regulatory standards and ethical practices, thereby exploring the significant business opportunities that arise.
After thoroughly elaborating the common organizations and functions of family offices, this course will explain in detail how Hong Kong's insurance products, under relevant legal and regulatory frameworks, can support family offices and underlying high-net-worth clients in their legacy planning. This course will also discuss, in an open and ethical manner, the shortcomings of insurance products.
In the process of providing professional insurance services to family offices and high-net-worth clients, other popular investment tools will inevitably be discussed. In light of this, this course will further explain the value of trusts, public and private funds, and virtual assets to "family offices" and high-net-worth clients, and compare these investment tools with insurance products, with reference to regulatory definitions such as those under the Trustee Ordinance, Securities and Futures Ordinance (SFO), and the latest virtual asset licensing regime. Ethical considerations when advising clients on these different tools will also be discussed.
Considering that most high-net-worth clients have overseas backgrounds and asset allocations, this course also explains in detail the different types of overseas taxes that clients may have to face, including capital gains tax, estate tax, inheritance tax, wealth tax, gift tax, property tax, etc., and discuss the feasibility of using insurance products or trust arrangements to reduce tax burdens, with reference to the legal requirements in various jurisdictions such as the United States, Mainland China, the United Kingdom, Canada, and Australia. Ethical client advice in cross-border tax planning will also be emphasized.
Finally, this course will also introduce Hong Kong’s HKD 30 million investment immigration program and explain how it can create synergy with the insurance industry and family offices, in line with relevant regulatory guidelines. Ethical and compliant promotion practices when offering related insurance products to high-net-worth clients will also be covered.
After completing this course, participants of the insurance industry will be able to better understand the financial and inheritance needs of high-net-worth customers, provide customers with more professional insurance services, and strive for better performance.
