Lena Ng from Clifford Chance in Singapore expects to see more M&A in wealth and financial services in the region.
Lena Ng, you recently advised on the sale of a private banking business. Do you see more consolidation in that sector due to increased regulation?
We do not expect to see any let up in terms of regulatory scrutiny and regulatory reform. Enforcement is also on the up-trend.
The cost of compliance therefore continues to be a driver for consolidation in the financial sector – this is both a driver for smaller players to exit as well as the larger players to expand so as to spread the cost over a greater number of customers.
Are insurance firms and asset managers also reviewing Asian units because of increased regulatory requirements?
Compliance pressures apply across the board to different types of financial firms. However, we also see M&A activity due to other (more positive) reasons as well, such as to grow existing franchises and due to fintech strategies.
Financial Technology is moving at a rapid pace, is the law keeping up?
The MAS has been actively looking at legislative changes to adapt to technological changes and innovation that impact on how financial services are delivered.
«Case law will also need to develop, this may take more time»
However, aside from legislation and regulations, case law will also need to develop. This may take more time.
Does the legal community meet frequently with the financial regulators in Singapore/Hong Kong to address this?
As a firm we are very active in contributing to legislative consultations and engaging with the regulators. We also participate in the change agenda through think-tanks, trade associations and other legal industry agencies.
The legal industry is also being disrupted by Artificial Intelligence from firms such as Crowd & Co. Do you envisage any major influence on your own business due to technology?
Clifford Chance has a global commitment to innovation. We embrace change and constantly challenge ourselves to develop new ways of working and delivering to clients.
«These jurisdictions are backed by strong rule of law»
With respect to artifical intelligence (AI), for example, we entered into a partnership with the AI software provider, Kira Systems in 2016. Automation, however, is not new to the firm, having used technology for document assembly as early as 2001.
Secondary financial hubs around the region are growing and maturing, will Singapore and Hong Kong retain their status as legal centres of excellence?
Yes, I strongly believe so. These jurisdictions are backed by strong rule of law. That the Singapore and Hong Kong regulators are very forward thinking and financial industry players have large legal teams in both jurisdictions will also help maintain the status.
Lena Ng leads the financial regulatory practice in the Clifford Chance Singapore office and advises on the full range of financial regulatory issues relating to financial services and market products, including banking services, securities, futures, derivatives and funds. She joined the firm in 2001 after receiving her LLM from University College London.
