What is offshore banking?
Offshore banks offer banking services to customers outside the customers’ domicile or country of residence. Offshore banks offer a wide range of benefits over and above what is available through standard banking channels. This has made them popular both amongst high networth individuals and businesses that operate internationally.
Benefits of offshore banking?
Sample some of the main benefits of offshore banking, as it may be called:
Singapore’s stable economic and political climate, world-class infrastructure, global outlook, a banking environment conducive to private banking needs, a reputation for high standards of regulation and supervision, a robust legal and judicial framework, a thriving financial sector and the presence of numerous offshore banking service providers (37 as per data released by the Monetary Authority of Singapore[MAS]) make it a great destination for offshore banking needs.
Ensuring Singapore’s offshore banking-industry’s growth
As a result of an initiative by the Private Banking Industry Group (“PBIG”), a Private Banking Code of Conduct for the industry was launched in April 2011. The code seeks to enhance the competency of private banking professionals, foster high market conduct standards and identify initatives aimed at facilitating future growth of offshore/private banking.
A wealth management talent pool for the industry
Supported by the MAS and developed by the industry, the Financial Industry Competency Standards (FICS) was launched to provide a practice-oriented approach for finance professionals to attain the competencies they need. In wealth management, competency standards have been established for the full range of job families– from relationship management to product development to trusts and estate planning.
A key partner, the Wealth Management Institute (WMI) was set up by the GIC and Temasek in 2003, to expand and develop the pool of talent and expertise for the wealth management industry in Singapore. More than half of the wealth management professionals trained under the FICS framework came through WMI’s programmes.
A more recent initiative to raise competency levels for the private banking industry is the introduction of the Client Advisor Competency Standards, or CACS. This industry-led initiative provides an independent mode of assessing the private banking professional’s competency before he is allowed to provide financial advice to clients.