Solid Evaluation and Incentive Mechanisms Are Needed

The evaluation and incentive mechanisms support the profitability model and the team-building effort. They are also the institutional guarantee for the implementation of the wealth management transition strategy. The evaluation and inventive mechanisms should follow the principles of being fair, open, and just. Contributions should be accurately measured. Outstanding performers should be rewarded and the underperformers sanctioned.

Contents of the Wealth Management Business

Generally, the wealth management business can be divided into the following seven categories:

1. Asset management services: Based on the extent of client participation, asset management services can be further divided into entrusted asset portfolio management and proprietary asset portfolio management. In addition to traditional bonds and stocks, asset portfolio investment targets also include new financial products such as mutual funds, managed funds, unit trust, asset restricted funds, index funds, return guaranteed funds, umbrella funds, and value guaranteed funds. Specific target investment includes financing lease, affiliated companies, private equity investment, venture investment, and leveraged M&A. Luxury investment may instead target paintings, porcelain items, sculptures, rare portraits, musical instruments, jewelry, antique cars, and horse-drawn carts.

2. Insurance services: These include life insurance, personal accident insurance, general insurance, and medical insurance.

3. Fiduciary services: The client entrusts the bank with operating and managing the assets according to the requirement of the trustor.

4. Taxation counseling and planning: Taxation planning may include drawing up a preimmigration tax plan for immigrants; taxation counseling and planning unrelated to investment; quasi-fiduciary services, including filling out the tax return; tax law and procedure assistance; and taxation counseling and planning in relation to investment management, such as the impact of income tax, company dividends, stamp tax, capital gains, and taxation laws on asset portfolio management.

5. Estate counseling and planning: Estate planning is necessary to draw up a will and inheritance contract, implement the will, and liquidate the assets of the deceased.

6. Real estate counseling: This includes real estate research, real estate purchase, real estate financing, contract review, and real estate liquidation.

7. Other services: Other services include concierge services, such as ticket purchases, and pet services.

 
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