One upshot of the political protests in Hong Kong since last summer has been pressure on asset and wealth managers based there to think about new locations. A report says, however, that firms are considering Singapore, and other places, as a diversification play for a number of reasons.

Political unrest in Hong Kong is encouraging some asset managers to set up offices in Singapore, Bloomberg reports (as cited by the Straits Times, 15 January). However, protests are not the only driver, because such firms want to diversify their footprints anyway.

Global finance advisor Duff & Phelps is quoted as saying that it has seen a rise in applications from Hong Kong asset managers to open offices in Singapore and apply to do regulated business. The report quoted Koh Sin Yee, director of compliance and regulatory consulting at D&P.

The report also quoted law firm Shook Lin & Bok as saying that since last August there has been a "surge in inquiries and actual instructions" from Hong Kong firms looking to set up fund management companies in Singapore.

Such a process will take time, because asset managers and other financial service firms need to obtain a local licence from the Monetary Authority of Singapore.

Last year, WealthBriefingAsia spoke to law firms about whether the protests had prompted much movement of assets, or indeed individuals, out of the jurisdiction. The general response was that there had been a rise of about 30 per cent in volume of enquiries about re-domiciling assets, and more queries about obtaining foreign passports and residency programmes.