1. Association of Private Bankers in Greater China Region
The Principles of Practice for Private Wealth Management
Introduction
The Association has mission to develop and promote the Principles of Practice to foster
responsible wealth management and to protect the private wealth owners and their
beneficiaries.
In this connection, the Association has good will to advocate the following paradigms:
● Prudent management of the private wealth management practice
● Full transparency of fees and commissions
● Full disclosure on material information that are of interests of wealth owners and their
beneficiaries
● Dedicated effort to avoid conflicts of interest
● Caution of investment not offering transparency or liquidity
● Customized solution addressing unique and in-different needs of wealth owners and
their beneficiaries
The Principles of Practice are a set of best practices intended to create ethical discipline,
process and transparency in private wealth management in greater China region. The
Association encourages the members and professionals who manage significant wealth to
adopt and implement the practice following our valued principles.
Supporting members and professionals can sign the Charter of Private Wealth Management
Practitioners to signify their conviction and buy-in to the paradigms and the principles.
The Principles of Practice are focused on the key areas of wealth management :
● Governance
● Service Approach
● Investment Management
● Oversight and Monitoring
© Association of Private Bankers in Greater China Region

2. The Principles of Practice for Private Wealth Management
Governance
Principle 1
Practitioners should maintain financial stability. There should be a track record of
consistent growth in assets and relationships over a period of 3-5 years. The practicing
institutions should present the sustainable corporate ownership, the prudent governance
structure and the proven firm profitability.
Principle 2
Practitioners should demonstrate commitment in fulfilling the multi-generational needs
of wealthy family. The practicing institutions should develop their mission that reflects
this commitment. Prime focus should be given in cultivating long-term and trustful
relationships, attaining diversified goals of wealth owners and assisting in wealth and
business transition.
Principle 3
Practitioners should employ competency and stable senior management and staff. The
senior management and the responsible officers should demonstrate the conviction to high
ethical standards and display the integrity in all the ways of managing the private wealth
management practice. The execution staffs should carry recognized industry credentials
and adequate experience in the private wealth management field.
Service Approach
Principle 4
Practitioners should adopt a client-centered relationship management approach and
practice in the way that reflect this live philosophy.
Principle 5
Practitioners should adopt an integrated service delivery process. This holistic approach
to the wealth management process should consider the entirety of the clients’ situation and
their best interest. The execution should reflect this live philosophy.
Principle 6
Practitioners should adopt a disciplined investment process. The practicing institutions
should establish the well-documented investment strategy, develop and maintain the
investment policy statements. The investment committee should be set up for supervising
and monitoring the investment.
© Association of Private Bankers in Greater China Region

3. Principle 7
Practitioners should maintain a diversified menu or platform of investment products. The
practicing institutions should get the access to a broad range of investment product, asset
management services, financing solution and diversified asset classes.
Investment Management
Principle 8
Each investment portfolio shall be diversified as completely as practical. There should
be diversification of asset classes, investment managers, investment style, currencies,
banking and brokerage exposure, and geopolitical risks.
Principle 9
Every portfolio shall have an investment Policy statement, and every manager shall have
a clearly articulated mandate; and the investment Policy statement and mandate shall be
monitored.
Principle 10
Any investment portfolio shall be designed taking into account the assets, objectives,
needs, and character of the wealth owner and/or beneficiary; and should be monitored with
those in mind; and a Foundation shall have a process to determine whether the investment
program reflects the values of its mission and its philanthropic grant program.
Principle 11
There shall be clear, disciplined, and objective process for selecting, monitoring, removing,
and replacing investment managers, custodians, banks, trade execution, accounting, and
other professionals.
Principle 12
Any investment manager or specific fund to be used shall have a strategy and style
which can be easily understood and explained to others by the Wealth owners and their
beneficiaries or by one of the trustees, directors, or staff members of the Trust, Foundation,
or Family Office. If no one other than the Investment Manager or the fund representative is
able to explain the strategy and style, the manager or fund shall not be used.
Principle 13
Special scrutiny and limitations should be applied to any Investment Manager who does
not offer complete transparency, or whose portfolio is not liquid. Such investments are not
prohibited, but should be limited in proportion to total portfolio investments.
Principle 14
Custody of assets, accounting for assets, and investment management services shall each
be performed independently and separately.
© Association of Private Bankers in Greater China Region

4. Oversight and Monitoring
Principle 15
The wealth owners and beneficiaries, the Trustees of a Trust, or the Directors of a
Foundation shall articulate purposes, goals, expectations and risk tolerance with respect
to the Wealth; and shall be ultimately responsible for maintaining the currency of that
articulation.
Principle 16
With respect to a Family Office, a Trust, or a Foundation; the governance structure
together with various governance roles and responsibilities shall be clearly set forth and
shall include provision for the communication of those roles and responsibilities and
assurance that they are understood and accepted.
Principle 17
Any Trust or Foundation and any Trustee or Director shall adhere to best fiduciary
practices; and there shall be established process for monitoring the discharge of fiduciary
duties by the Trust, Foundation, a Trustee, or a Director.
Principle 18
Succession shall be set out where possible and shall be considered. For the Wealth
owners and their beneficiaries, provisions shall be in existence for disposition of assets and
management of affairs from and after death or in the event of incapacity. For the Family
Office, Trust, or Foundation; provision shall be made for succession of governance and
management.
Principle 19
Practitioners should establish a process for reviewing the governance mechanism, the
work policies and procedures. There shall be a method for managing and monitoring
internal and external resources.
Principle 20
Practitioners should maintain comprehensive financial reporting to enable clients to
understand their consolidated and latest financial position.
Principle 21
Practitioners should comply with all regulatory and financial requirements. The practicing
institutions should be able to demonstrate the evidence of compliance with regulatory
agencies and reliance on routine internal control procedures, such as financial, security
and technology audits.
© Association of Private Bankers in Greater China Region

5. Principle 22
Practitioners should develop their robust technology platform. The practicing should
hold reliable hardware and software systems that support the complex needs of multi-
generational wealth owners and their beneficiaries.
Principle 23
Practitioners should enable full transparency of fees, commission and expenses.
Full disclosure and clear explanation must be offered to the wealth owners and their
beneficiaries prior to the execution and the disclosure should be arranged on an on-going
basis.
Principle 24
Practitioners should maintain an equitable policy where the compensation and fees paid
to staff, directors, and governors of Family Offices, Foundations, or Boards shall not be
calculated on the basis of “investment return” of shorter duration than five years. Any
salary, bonus, or fee must be fully disclosed as to its amount and its calculation. Any direct
or indirect payment to or for staff or governors other than a payment designated salary,
bonus, or fee (or similar designation) is discouraged.
Principle 25
Practitioners should maintain a staff dealing policy where the self-dealing by staff, trustees,
or directors of any Family Office, Trust, or Foundation is strictly prohibited. Investment
portfolios of these parties shall be subject to strict disclosure rules which ensure
compliance with the prohibition against self-dealing. Any grant or payment to any agency
or company in which such a party has any interest whatsoever should clearly reflect that
interest in the deliberation relating to that grant or payment.
© Association of Private Bankers in Greater China Region