Advantages and disadvantages of opening private banks

1. Benefits of private banking: it can guarantee the privacy, specificity and professionalism of users, and increase the property of package customers on the basis of value preservation;

2. Disadvantages of private banking: the market does not realize the necessity of private banking, the variety is not rich enough, the scale is limited, and a reasonable structure needs to be established. The quality of employees is not high, the after-sales service is not perfect, and the marketing system is in the stage of being perfected.

Private banks refer to commercial banks that sign investment and asset management contracts with specific customers on the basis of full communication and consultation. Customers entrust commercial banks to provide comprehensive entrusted investment services on behalf of customers in accordance with the investment plan, investment scope and investment methods agreed in the contract.

According to the service classification of western banking, the first category is MassBanking, which does not limit the scale of customer assets; The second category is VIP banking, with customer assets exceeding $654.38 million+; The third category is private banking, which requires customers' assets to be above $654.38+$0 million; The fourth category is FamilyOffice, which requires customers' assets to be above $80 million.

type

overseafund

Offshore funds, also known as overseas funds, refer to investment funds whose fund capital comes from abroad and invests in foreign securities markets. Its main function is to avoid the risk of a single domestic market and help customers allocate assets globally. According to the different registered place and currency of the fund issuing company, it can be divided into:

Funds issued and raised by foreign fund companies, funds introduced by investment consulting companies established in China and subscribed by domestic investors are all registered overseas, especially in some tax havens, and funds issued and raised by domestic fund companies and invested overseas.

Global wealth protection

GlobalWealthSafeguard, setting up offshore private companies in overseas tax-free countries and regions is one of the important schemes, which is helpful for tax and estate planning. Its main function is to hold assets such as foreign currency deposits, securities investment, gold, real estate and land. If it is combined with family trust funds established overseas, the guarantee effect will be better.

Family trust fund

Family trust fund is also an effective way for private banks to protect customers' wealth. Trust fund is a legal relationship in which the client transfers the ownership of his property to the trustee (bank), so that the trustee can hold and manage the client's assets (trust fund) for the benefit of the beneficiary according to the regulations of trust deed.

According to the trust agreement, the trustee is the legal owner of the property and must manage the property according to the governing law and the terms of the trust agreement. Based on the beneficiary's legal right to own the trust property, and he must be responsible for the trust, only the beneficiary can implement the trust terms.