WRISE, a firm founded more than three years ago and which has expanded in a number of jurisdictions, talks to this news service about what it is doing in the field of external asset managers in Asia, and beyond.

As part of our coverage of Singapore and the wider region’s external asset managers sector, we spoke to Derrick Tan (main picture), group executive chairman of WRISE, a new wealth management firm created about three years ago. (See an interview that year, with Tan.) In 2022, when it launched in Singapore, it also initiated its core wealth system, TREX. The TREX system, which works via an API, frees clients from contacting lots of banks to execute investment decisions. TREX has a built-in wealth aggregator that enables the consolidation of data from financial institutions. The bankable assets consist of assets managed with the custodian banks and non-bankable assets such as arts, lifestyle investments and others.

Tan says the EAM business is “essential” to WRISE Group's growth strategy. It contributes a significant sum to its revenue growth and its desire to reshape Asian wealth management.

WRISE Group operates an “ecosystem” across three business segments: WRISE Private (which serves UHNW individuals) and family offices as an EAM and multi-family office, supported by a global team of client advisors); WRISE Prestige (for fintech-inclined HNW individuals, offering transparent pricing and exclusive direct investment opportunities through a network of fully-licensed independent wealth consultants), and WRISE Capital (corporate finance advisory services for private and institutional clients).

WRISE Prestige serves as a strategic enabler for both WRISE Private and external EAMs, offering a robust platform that allows them to focus on their core business offerings without compromising service quality. This is achieved through access to global markets: equities, fixed income, structured products, alternative investments, derivatives trading, and insurance; competitive pricing and efficient execution, enabling EAMs to optimise client portfolios while maintaining cost efficiency; and market intelligence and insights: Empowering EAMs with data-driven investment strategies to enhance decision-making.

WealthBriefingAsia: How important has the rise of Variable Capital Companies in Singapore been in driving what EAMs do and the services they need?
Tan: The rise of VCCs has been a transformative development for external asset managers in Singapore, significantly shaping the services they require and the solutions they offer to clients.

Since its introduction in 2020, the VCC framework has seen rapid adoption, with over 1,000 VCCs incorporated or re-domiciled in Singapore as of 31 December 2023. Notably, approximately 28 per cent of these are used by family offices and EAMs, underscoring their growing importance in the wealth and asset management industry. (Source: MAS Singapore Asset Management Survey 2023, ACRA and Singapore Fund Administrators Association, 2023.)

The flexibility of the VCC framework allows EAMs such as WRISE Private to manage multiple client mandates under a single umbrella. This not only enables EAMs to attract a broader range of investors but also ensures clear segregation of assets and liabilities, reduces administrative costs, and enhances operational efficiency.

To meet this growing demand, WRISE is committed to empowering independent wealth advisors with fund structuring expertise, administration, and compliance solutions. We offer UHNW individuals, HNW individuals, and family offices the ability to establish VCC structures seamlessly through strategic partnerships with a global network of financial intermediaries. 

WBA: Regulatory issues remain important, and Singapore is of course no exception, along with Southeast Asia more generally. Are there topics that are particularly front of mind at the moment?
Tan: There are two key regulatory areas that remain at the forefront for us: Anti-Money Laundering (AML) and fair dealing with clients.

In Singapore, despite robust AML laws and strong enforcement efforts, financial institutions remain vulnerable to money laundering risks. The recent Fujian gang money laundering case in Singapore underscored the critical role financial institutions play as the first line of defence, highlighting the need for stronger AML controls, particularly in KYC frameworks and ongoing monitoring to detect illicit activities. At WRISE, we take a pragmatic yet rigorous approach to combating money laundering. 

This begins with a well-defined risk appetite aligned with our business objectives. We uphold stringent KYC standards and ensure strict compliance with regulatory requirements. However, like the broader industry, we face challenges such as a shortage of compliance talent and the need to balance scrutiny without overburdening legitimate clients.

To address these challenges, our management team remains actively engaged in fostering a strong compliance culture. At WRISE, we are proud to have one of the largest compliance and risk teams in Asia, headed by our global head of risk and compliance, a former officer at the Singapore Police Force’s Commercial Affairs Department (CAD). 

We continue to invest in our people through initiatives like the WRISE Academy, which aims to attract, groom, upskill, and retain talent. For clients, we adopt a risk-based approach, applying heightened scrutiny to those posing higher ML risks while streamlining processes for legitimate clients. Our AML framework is continuously reviewed and enhanced to improve both compliance and client experience.

Fair dealing has long been a regulatory focus and remains a top priority for WRISE. In December 2024, the Monetary Authority of Singapore (MAS) took enforcement action against a major financial institution over misconduct by its relationship managers, reinforcing its stance against unethical practices. Regulators across the region have also emphasised the importance of maintaining fair dealing with clients.

At WRISE, we take this responsibility seriously, prioritizing client interests in all our dealings. We ensure fairness, transparency, and suitability by aligning our recommendations with each client’s investment profile. However, achieving consistent fair dealing presents challenges, including the need for continuous updates to policies and training to keep pace with the evolving regulatory landscape. 

Additionally, managing potential conflicts of interest remains a key challenge, as we must balance incentive structures while upholding ethical standards. Despite these challenges, WRISE remains committed to maintaining the highest level of integrity and professionalism. We believe that client trust is at the core of our business, and we are dedicated to upholding it through robust compliance practices and ethical conduct.