HSBC forays into succession planning

HSBC has forayed into the business of providing advisory services on succession planning for businessmen, as part of its private banking services. HSBC has appointed Subir Mittra, formerly with swiss bank UBS, as the head of private banking division.

The target customers are wealthy individuals wanting to ensure smooth passage of ownership to the next generation. HSBC will hire the services of taxation and legal experts for providing seamless advisory services to high net worth individuals (HNIs) and help decide on bequeathal of assets.

HSBC officials said there is increased demand for succession planning advisory services after the recent high profile feuds in business families over ownership of family assets.Many family-promoted enterprises are asking banks to help them in succession planning.

Preservation of wealth has become the mantra as private bankers are broadening their relationships with exporter communities and family-owned firms.

"Considering the amount of wealth being created in the country by first generation entrepreneurs, there is a demand for the setting up of trusts to protect this wealth against the second generation frittering it away," the foreign bank official said.

The bank is also rolling out advisory services on commodities, derivatives, art and real estate investments, a senior official of the bank said. The new-age affluent customers have diverse interests, spanning across fields such as art, property etc, informed the official.