Why top Australian Financial Advisers are headed off-shore to China

Recognised for developing world class Financial Planners Australia is fast becoming a talent pool for countries with under developed or regulated financial and investment markets. One such market is China where a large Australian expat community resides.

We asked a group of Financial Advisers who have recently commenced in China about their motivations and recent experiences working in Shanghai, China. Their responses provide an interesting insight into the opportunities and challenges abroad for Australian Financial Advisers.

Personally I view them as pioneers spreading the good word of Financial Advice in developing regions. See what you think...

Question 1: After completing your education and gaining Financial Advice industry experience in Australia, what was the attraction at this stage of your career for a move overseas?

Adviser 1 - The potential business opportunities in China compared to those in Australia are phenomenal.

Adviser 2 - I think the reasons behind moving to China was the excitement of working in a vibrant city such as Shanghai. Building a business from a standing start position, and having all the issues of such a start-up but the challenge of succeeding in a demanding market keeps you motivated and being dynamic enough to quickly evolve with new trends and opportunities. It is a city for dynamic individuals who are ready to seize the initiative and I believe that opportunity is why I am here.

Adviser 3 - The industry in Australia was tightening up due to a few bad eggs and with that, making it more difficult for reputable Advisers to do business. China offered an opportunity whereby I could use my acquired skill set and qualifications to improve an otherwise unregulated market and see a lot more of the world while doing it.  

Question 2: Why China, and what do you see as the challenge and opportunity?

A1 - Opportunity: Access to International Investment platform and offshore client base.

Challenge: Working to get client across the line when financial planning is not always on the top of expat’s agenda. 

A2 - China poses the new frontier, especially when it comes to technology within financial services, it is the place to be in. One moment in the country, you know how powerful the economy is especially e-commerce, with financial services innovators such as Alibaba with ALIPAY and TenCent with WECHAT pay. It is revolutionary and something that needs to be experienced and by far advanced in evolution than other countries. The challenges are usual, regulation, such as recently, the introduction of the ban in crypto-currency trading, shook the entire crypto-currency market and China has the capability of making quick decisions. It is always important to stay ahead with the regulations in China, and if you are knowledgeable with what is abreast then you should be able to advise your clients better and provide better value. 

A3 - China is the middle kingdom, and the centre of the world. You can jump on a plane and be in South Korea in an hour and a half or the UK in less than 10 hours. Additionally the culture is the direct reciprocal of what we experience in the western world.

Challenges: The temperature extremes and the surplus socialising to build new networks.

Opportunity: If you utilise the surplus socialising, you can be very successful. If you put the hard yards in at the start, you can move home or anywhere in the world with something really tangible.

Question 3: How long have you been in Shanghai and what do you feel and believe is the opportunity for advice as an industry?

A1 - 5 months. Good structure, great pool of potential clients in the community.

A2 - I have been in Shanghai for 5 months and I think the advice industry has good opportunities. The level of complexity rises in china, whether it being navigating the tax situation or knowing the right investment opportunities, there are weird and wacky investment schemes found everywhere, but if you like to keep things simple and apply the gained knowledge from the Australian market then you can bring value to your clients. Shanghai is an interesting place, I have already seen some horror stories with investments and it is vital that as an adviser you steer your clients in the right path and becoming a key opinion leader for the matters of tax and investments.

A3 - Just under 5 months. Eventually the industry in China will become regulated to some extent. Our job here is to bridge the gap and offer a level of service that hasn’t been seen here to date. 

Question 4: What do you perceive are three key attributes for Advisers to be successful in an expat market such as China?

A1 - Persistence, Openness (Outgoing), Adapting to Change

A2 - Resilience – there is a lot of negativity about financial advice, with what has occurred previously, but resiliency is key to survival. Having a good value proposition – knowing what value you bring to your clients and demonstrating your knowledge and that you are different. Delivering on your words – getting the basics right is fundamental whether it be getting back to clients or meeting on time, doing the basics right is key to managing expectations, especially when you are in China with things happening very fast.

A3 - Ability to build relationships with multi-cultures. Ability to build strong habits. Ability to stay focused on the end goal.

Question 5: Explain how you see the long term benefits for Advisers (and the industry) in this market?

A1 - Opportunity and potential to build a very valuable business.

A2 - I think there is a lot of upside to be an adviser in Asia. With the potential to work in different jurisdictions, meeting new and different nationalities also pose new opportunities in enhancing your knowledge base around different jurisdictional tax and investments which is much different to the domestic market like Australia where you are dealing with only one set of rules and regulations. I have dealt with people with Turkish, Australian and Singaporean backgrounds and clients then having assets in different jurisdictions which keeps you engaged in developing better strategies and in the end providing better value to your clients.

A3 - You can see the world, and change the perception of the advice industry in this part of the market to a profession. 

Interesting stuff from some pioneers in Advice.

Like to learn more - Financial Advice in China Opportunity