Click here to download the Private banking and wealth management 2020 report, published by Getting the Deal Through.

Jurisdictions covered

The following 11 jurisdictions are covered in this report:

China; France; Germany; Hong Kong; Israel; Liechtenstein; Monaco; Singapore; Switzerland; United Kingdom; United States.

Questions

The set of questions relating to the topic of private banking & wealth management and answered by the guide for each jurisdiction covered include:

Private banking and wealth management

• • What are the main sources of law and regulation relevant for private banking?
• • What are the main government, regulatory or self-regulatory bodies relevant for private banking and wealth management?
• • How are private wealth services commonly provided in your jurisdiction(eg, private banks, multi-family offices, independent asset managers, trustees)?
• • What is the definition of private banking or similar business in your jurisdiction?
• • What are the main licensing requirements for a private bank (disclosure, substance, fit and proper test, capital, etc)?
• • What are the main ongoing conditions of a licence for a private bank?
• • What are the most common forms of organisation of a private bank?
• • How long does it take to obtain a licence for a private bank?
• • What are the processes and conditions for closure or withdrawal of licences?
• • Is wealth management subject to supervision or licensing?
• • What are the main licensing requirements for wealth management?
• • What are the main ongoing conditions of a wealth management licence?

Anti-money laundering and financial crime prevention

• • What are the main anti-money laundering and financial crime prevention requirements for private banking and wealth management in your jurisdiction?
• • What is the definition of a politically exposed person (PEP) in local law? Are there increased due diligence requirements for establishing a private banking relationship for a PEP?
• • What is the minimum identification documentation required for account opening? Describe the customary level of due diligence and information required to establish a private banking relationship in your jurisdiction.
• • Are tax offences predicate offences for money laundering? What is the definition and scope of the main predicate offences?
• • What is the minimum compliance verification required from financial intermediaries in connection to tax compliance of their clients?
• • What is the liability for failing to comply with money laundering or financial crime rules?

Client segmentation and protection

• • Does your jurisdiction’s legal and regulatory framework distinguish between types of client for private banking purposes?
• • What are the consequences of client categorisation?
• • Is there consumer protection or similar legislation in your jurisdiction relevant to private banking and wealth management?

Exchange controls and withdrawals

• • Describe any exchange controls or restrictions on the movement of funds.
• • Are there restrictions on cash withdrawals imposed by law or regulation? Do banks customarily impose restrictions on account withdrawals?
• • Are there any restrictions on other withdrawals from an account in your jurisdiction?

Cross-border services

• • What is the general framework dealing with cross-border private banking services into your jurisdiction?
• • Are there any licensing requirements for cross-border private banking services into your jurisdiction?
• • What forms of cross-border services are regulated and how?
• • May employees of foreign private banking institutions travel to meet clients and prospective clients in your jurisdiction? Are there any licensing or registration requirements?
• • May foreign private banking institutions send documents to clients and prospective clients in your jurisdiction? Are there any licensing or registration requirements?

Tax disclosure and reporting

• • What are the main requirements on individual taxpayers in your jurisdiction to disclose or establish tax-compliant status of private banking accounts to the authorities in your jurisdiction? Does the requirement differ for domestic and foreign private banking accounts?
• • Are there any reporting requirements imposed on the private banks or financial intermediaries in your jurisdiction in respect to their domestic and international clients?
• • Is client consent required to permit reporting by the private bank or financial intermediary? Can such consent be revoked? What is the consequence of consent not being given or being revoked?

Structures

• • What is the most common legal structure for holding private assets in your jurisdiction? Describe the benefits, risks and costs of the most common structures.
• • What is the customary level of know-your-customer (KYC) and other information required to establish a private banking relationship where assets are held in the name of a legal structure?
• • What is the definition of controlling person in your jurisdiction?
• • Are there any regulatory or tax obstacles to the use of structures to hold private assets?

Contract provisions

• • Describe the various types of private banking and wealth management contracts and their main features. (Include a discussion of governing law and whether it can be varied by the parties.)
• • What is the liability standard provided for by law? Can it be varied by contract and what is the customary negotiated liability standard in your jurisdiction?
• • Are any mandatory provisions imposed by law or regulation in private banking or wealth management contracts? Are there any mandatory requirements for any disclosure, notice, form or content of any of the private banking contract documentation?
• • What is the applicable limitation period for claims under a private banking or wealth management contract? Can the limitation period be varied contractually? How can the limitation period be tolled or waived?

Confidentiality

• • Describe any private banking confidentiality obligations.
• • What information and documents are within the scope of confidentiality?
• • What are the exceptions and limitations to the duty of confidentiality?
• • What is the liability for the breach of confidentiality?

Disputes

• • What are the local competent authorities for dispute resolution in the private banking industry?
• • Are private banking disputes subject to disclosure to the local regulator? Can a client lodge a complaint with the local regulator? How are complaints investigated?