Starting with a clean slate has given the company the upper-hand, particularly when considering some firms – including private banks – have struggled to implement new policies emerging out of Hong Kong.
“We are building a robust business from scratch, whereas if we were to acquire something, then we are potentially taking on a lot of regulatory issues that can consume a lot of time,” says Benskin.
Bank ties
Rather than competing directly with the private banks, the small IFA business works closely alongside them instead: “We can act as that layer between the private banks and clients,” explains Benskin.
“Clients can still hold assets with the private banks, but we can engage with them as that relationship manager.
“What is going well for us is the private banks are not hugely interested unless the client has got in excess of £10m, whereas we are able to add a lot of value to clients who have got less than that. Clients are also frustrated with the way relationship managers tend to change a lot at the banks.”
No surprises
Benskin and Snelling also work closely with clients to ensure they appoint the right investment managers to suit their risk profile, providing due diligence, helping interview the discretionary fund managers (DFMs), and monitoring the progress of the investments.
“We have gathered quite a lot of financial knowledge over the years,” says Benskin. “We think about what we would do if it was our money.
“We try to engage the managers to make sure there are no surprises for the clients by really trying and understand the level of risk the client is looking to take and what they are looking to get out of the investment.”
Shrinking expat pay
One of the biggest issues currently facing expat clients in Hong Kong is the demise of lucrative expat packages, Benskin says.
“It used to be a standard that expats would get amazing packages, but now a lot of employers are looking at the cost and instead offer more localised packages.”
This makes clients evaluate whether working away from home in another country is it worth doing, but Benskin is confident that “most of the time it is”.
From the start, Strabens Hall has been one step ahead of the game, and there is no question that the directors’ resounding knowledge of changes in the UK market has given them the upper hand when establishing their business in Hong Kong.
