At the Hubbis Philippines Wealth Management Forum in Manila on March 19, leading industry experts gathered to explore how the wealth management industry in the country can evolve to meet rising client expectations and global best practices. Among the most thought-provoking voices was Philipp Piaz, Partner at Finaport. Drawing on more than two decades of experience in Swiss private banking and independent asset management in Singapore, Philipp offered a fresh and ambitious perspective on how the Philippines can embrace the independent wealth management model. His insights centred on offering clients greater flexibility, product neutrality, and tailored advice — all within a robust and regulated framework that can support sustainable long-term growth.
The Independent Model: A Client-Centric Alternative
Philipp began by explaining how the independent wealth management model has become a logical progression for markets with growing sophistication. “There is an offering outside the private banks for both bankers and clients alike,” he commented. He described the triangular relationship between client, custodian, and external asset manager, where execution takes place with the bank or broker, but the advisory and management functions are fully externalised. This structure, he explained, allows wealth managers to shed product sales pressures and focus solely on the client’s best interests. “We are no longer a sales arm of a bank or a fund; instead, we sit on the client’s side, looking for what is genuinely good to buy,” he remarked.
He observed that this model has taken root in jurisdictions such as Singapore and Switzerland, where clients appreciate having a professional intermediary who can aggregate solutions from multiple banks and custodians. He suggested that the Philippines, with its growing wealth base, is at the ideal point to begin developing this model locally.
Regulation and Accountability: A Necessary Foundation
Philipp highlighted the importance of regulation in building trust and ensuring long-term stability. He acknowledged that while single-family offices in places like Singapore operate without direct regulatory oversight, multi-family offices and external asset managers are subject to regular audits and compliance requirements. “You don’t want to set up your own entity and leave your nephew or niece running it with no external oversight,” he cautioned. He pointed to recent scandals in Singapore, where single-family offices had misappropriated tens of millions of dollars, as evidence that unregulated structures carry real risks.
In contrast, he explained that regulated entities not only provide clients with peace of mind but also ensure that wealth management services are delivered according to best practices. “A regulated independent asset manager gives confidence that local rules are followed and standards maintained,” he observed. For the Philippines, he argued that embracing this regulated approach will be key in fostering a robust independent wealth management ecosystem that both clients and advisors can rely on.
Practical Considerations and Wealth Thresholds
Addressing the practical realities of adopting the independent model, Philipp outlined the typical thresholds that determine which clients can benefit most. “In Singapore, you need at least two million dollars to deal with private banks or external asset managers. Switzerland and Liechtenstein, however, have no minimum,” he explained. For single-family offices, he observed that the model only becomes cost-effective at the very high end of the wealth spectrum. “Single-family offices incur a lot of cost if you want to do it well, and those costs are not justified this side of two or three hundred million,” he reported. For clients with wealth ranging from five million to two hundred million dollars, Philipp described the multi-family office model as the most efficient and practical solution.
He encouraged Filipino clients to consider this model as their wealth and investment complexity grow, highlighting that it offers the ability to tailor portfolios and access best-of-breed solutions without the administrative burden and cost of running a fully private structure.
The Philippines: Positioned for Rapid Evolution
Philipp expressed strong optimism about the Philippines’ ability to embrace this model and evolve quickly. He described the country as being at the right stage of development, with a young, entrepreneurial population and rising levels of affluence. “You have the youngest demographic in Asia and a fast-growing economy. This is a market that can skip several steps and build a modern wealth management infrastructure far faster than what we’ve seen in Europe,” he observed.
He pointed to the changing expectations of younger generations, who are more engaged and eager to explore investment opportunities beyond traditional bank deposits. “It’s no longer just about parking cash and collecting interest. This generation wants to talk about private equity, ETFs, and venture capital — and they want to hold these investments in structures they can trust,” he explained.
Philipp also highlighted the Philippines’ growing consumer market, supported by remittances from overseas workers, as a key driver of wealth accumulation. He commented that this trend would increasingly lead to demand for more sophisticated financial planning, estate structuring, and investment advisory services.
A Strong Case for Collaboration with Local Institutions
Rather than positioning the independent model in opposition to private banks, Philipp emphasised that collaboration is key. “We see ourselves as a symbiotic partner of private banks,” he commented. He explained that independent managers often work alongside banks and custodians to create holistic solutions for clients. He argued that this approach could bring comfort to Filipino clients who may not yet be familiar with the independent model but are looking for advice that is free of product bias.
He suggested that with regulatory support and industry cooperation, the Philippines could build an ecosystem where clients have the option to manage part of their wealth locally, with the guidance of independent advisors who are not constrained by institutional pressures. “Why should Filipino clients have to keep all their assets in Singapore or Switzerland when they can partially manage them locally, supported by external professionals who have nothing to sell but only their best interests at heart?” he observed.
Philipp’s detailed commentary offered a compelling vision for the Philippines, one that calls for innovation, regulation, and collaboration. He painted a picture of a market ready to leap forward, adopting models that have taken decades to mature elsewhere but could be implemented more swiftly given the right mix of ambition, regulation, and industry commitment. His message to the audience was clear: the opportunity is here, and those who move first stand to gain the most.
