Teach Our Children Well…

I love reading/hearing the academia view on our industry. Akin to politics, there is a right wing, a left wing and a slew of moderates. Academics are usually skewed to one side when it comes to the trust industry. They tend to over rely on the effectiveness or enforcement of laws, regulations and place much emphasis on selected statistics then draw inferences and conclusions there from. As a practitioner, I’m probably skewed towards the other end of the spectrum. I see things they don’t and vice-versa.

For all you law students attending the lecture below, challenge the speaker, challenge me. Never take what is said for more than face value. The greatest skill you can get from university is the ability to read between the lines, debate and see the other side(s). It’s like most people will tell you that (cow’s) milk is a great source of nutrition and everyone should have a glass of milk regularly. Have you given thought to the deforestation needed to have grazing pastures for dairy cattle? The methane gas emissions? The means used to keep cows pregnant and lactating?

Is Singapore a major trust jurisdiction? Where does the 50 odd licensed trust companies compare to others centers like Jersey or Bermuda of Hong Kong? How many trusts are there? The MAS has statistics. There is much grumbling about the lack of qualified bankers and other financial service providers in Singapore, so what about qualified trust people? Are they employing Singaporeans or are they importing labour? How many of the licensed trust companies have clean MAS audits? Quantity does not mean quality. What are the audit findings or deficiencies if any? The MAS knows, but does Dr Tang? How many cases of breach of trust have been brought before the courts?


Is the trust industry and trust laws a driver of the wealth management industry growth or is trust a by-product of the wealth management growth? Given the amount of paper the used, I could argue that the recycling industry is driving the growth of the wealth management industry. What is the penetration rate of trusts into banking or financial services consumers? What percentage of Singapore trust assets are actually in Singapore that would require managing (and job/business opportunities for Singapore)? Consider that a typical structure is a Singapore trust holding an offshore company which in turn holds assets ranging from real estate, operating companies and bank accounts. How much of that real estate or operating companies or bank accounts are actually in Singapore? Has the “one-dragon” business model been realized? Or is there really double or over-counting of assets under management? What about the tax discrimination against Singaporeans using Singaporean trust services? Why is the government driving its own people to other trust jurisdictions? What about the money Singapore is attracting? How much of that "hot" money?

Isn’t it interesting the talk will include the “asset protection” aspects of a Singapore trust? People that seek out creditor/divorce or heirship protection trusts are usually people that have (or expect to have problems). In other words “high risk” customers. It’s like saying we have a sports team that won’t do drug testing. Every doper will want to join your team. Does Dr Tang have statistics on how many times the High Court has allowed enquiries into Singapore trusts? How many convictions under the “data protection/secrecy” rules? (Just one or is the AG using “improper use of computers” to prosecute instead?). High risk usually means litigation or arbitration opportunities, so pay close attention, it may be the defining moment for you to change career paths.


The Dot is Hot: The Rise of Singapore as a Major Trust Jurisdiction
posted by Faculty of Law for HKU and Public
Event Type: Seminar/Workshop/Lecture/Talk/Conference
Event Nature: Law and Politics
Event Details
Dr Tang Hang-Wu
Associate Professor, Faculty of Law, National University of Singapore

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This presentation will track the various developments in Singapore trust law which has led Singapore to be a major wealth management centre in Asia. In particular, the speaker will consider the ability of the Singapore trust to withstand external attacks from creditors, divorcing spouses and disgruntled heirs. The speaker will also consider in outline the Singapore Business Trust Act and its recent applications.

ABOUT THE SPEAKER: Dr Tang Hang-Wu is an Associate Professor at the Faculty of Law, National University of Singapore where he teaches and writes on land law, equity, trusts and restitution. Hang-Wu has published widely and his publications have been relied on by law reform committees (Singapore, New Zealand, Scotland and Ireland), leading textbooks and law journals in the Commonwealth. His work has also been cited by the Caribbean Court of Appeal and all levels of the Singapore courts. He has given expert evidence on fiduciary law and advised members of Singapore's legal profession and relevant government ministries on complex legal issues pertaining to restitution, land, trusts and charities.