Private Banking Glossary: 55 Hong Kong and Singapore Terms in Chinese and English

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Private banking terms in Hong Kong and Singapore often look the same but mean different things: AI in a Hong Kong document means an Authorized Institution (a bank), while AI in a Singapore document means an Accredited Investor; PI and SPI are Hong Kong investor classifications, and the Singapore counterpart is the Accredited Investor, which requires a written opt-in. The 55 terms on this page are arranged in seven groups – basic concepts, client classification and regulation, onboarding and compliance, investment services, credit and financing, fees and benefits, and insurance, trusts and client protection. Each entry gives the Chinese and English names and states where it applies, and every definition can be cited on its own. For explanations in question-and-answer form, see the FAQ.

1. Basic concepts

私人银行 Private Banking

A comprehensive wealth service that banks provide to high-net-worth clients, usually covering investment advice, discretionary management, custody, credit secured on assets and coordination of succession arrangements. It is not a separate statutory licence: in both Hong Kong and Singapore it is carried on under a banking licence, with the HKMA and MAS respectively as the main regulators.

私人财富管理 Private Wealth Management (PWM)

A business category used alongside private banking in Hong Kong regulatory statistics, referring to wealth management services for high-net-worth clients. An HKMA article of 4 August 2025, citing an SFC survey, said assets under management in this business grew 15% year on year in 2024, with net fund inflows of HK$384 billion.

优先理财 Priority / Premier Banking

A tiered service that banks offer to affluent clients, centred on deposits, wealth products and fee concessions, and more standardised than private banking. For example, DBS Treasures in Singapore publicly states a threshold of S$350,000 in investable assets (checked 23 October 2026).

记账中心 Booking Centre

The place where a client's account and assets are legally registered and held in custody. It determines which jurisdiction's banking and investor protection rules apply, deposit protection, the CRS reporting entity and the availability of some services, and it can differ from both the relationship manager's location and the client's place of residence.

客户经理 Relationship Manager (RM)

The front-line person in a private bank responsible for the client relationship, who coordinates account opening, investment, credit and other specialist teams. In Hong Kong, client-facing private wealth management practitioners are subject to the ECF-PWM competency framework; in Singapore, private banking practitioners must pass the CACS assessment.

投资顾问 Investment Counsellor / Advisor

The specialist within a private bank responsible for investment advice, usually working alongside the relationship manager to propose asset allocation and products in an advisory account; the client decides whether to trade. In a discretionary account, by contrast, the portfolio manager makes buy and sell decisions under the mandate.

外部资产管理人 External Asset Manager (EAM)

A licensed asset management firm independent of the private bank that, with the client's written authorisation, manages the client's assets held at the private bank, while the private bank provides custody, trade execution and credit. The client must contract separately with the private bank and the EAM, and should verify the EAM's licence and fee arrangements independently.

单一家族办公室 Single Family Office (SFO)

An organisation that manages wealth for a single family. Singapore single family offices commonly apply for the 13O or 13U tax incentive schemes, and family office funds newly approved from 1 August 2026 must hold a private banking account; in a parliamentary reply of 5 August 2026, MAS said more than 2,000 single family offices had been awarded tax incentives as at the end of 2025.

可投资资产 Investable / Investible Assets

The financial assets a bank counts when applying its entry threshold, usually including cash, deposits, equities, bonds and funds, and generally excluding the client's own home and business assets. Definitions vary by bank; for example, the websites of DBS Private Bank and Bank of Singapore both state US$5 million (checked 23 October 2026).

新资金 Fresh Funds

Money or assets newly transferred into the bank from elsewhere, which some banks use to measure tiered thresholds. For example, OCBC Premier Private Client publicly states a requirement to deposit or invest S$1.5 million in fresh funds and to qualify as an Accredited Investor (checked 23 October 2026).

2. Client classification and regulation

专业投资者 Professional Investor (PI)

An investor category under Hong Kong's Securities and Futures (Professional Investor) Rules (Cap. 571D). An individual (alone or jointly with an associate) must hold a portfolio of not less than HK$8 million, excluding real estate. Once treated as a PI, some retail investor protections no longer apply.

资深专业投资者 Sophisticated Professional Investor (SPI)

The type of client to whom the streamlined approach in the joint HKMA–SFC circular of 28 July 2023 applies. According to a law firm's summary of the circular's annex (a secondary source), one qualifying route is a portfolio of not less than HK$40 million or net assets (excluding the client's own residential property) of not less than HK$80 million, together with passing a knowledge or experience test.

流程简化安排 Streamlined Approach

Hong Kong's approach to suitability compliance for SPIs: intermediaries do not need to match each transaction to the client's risk tolerance and investment objectives, and product risks may be explained in advance, but controls must be in place to prevent abuse and identify unusual transactions, and the streamlining thresholds must be reviewed at least annually. As at June 2025, seven private banks had adopted it (HKMA).

认可投资者 Accredited Investor (AI, Singapore)

An investor category under section 4A of Singapore's Securities and Futures Act: net personal assets exceeding S$2 million (with the primary residence counted at no more than S$1 million), net financial assets exceeding S$1 million, or income in the preceding 12 months of not less than S$300,000. An individual must meet one of these and opt in.

选择加入 Opt-in

A procedural requirement in Singapore: an individual who meets the Accredited Investor criteria must expressly consent to being treated as an Accredited Investor before a financial institution may treat them as an AI. Opting in means some retail investor protections do not apply, and the client can generally withdraw.

适合性义务 Suitability Obligation

An obligation set out in paragraph 5.2 of the SFC Code of Conduct, among other provisions: when making a recommendation or solicitation, an intermediary must ensure that the product is reasonably suitable for the client, having regard to the client's financial situation, investment experience and objectives. The SPI arrangement simplifies how this is carried out transaction by transaction, but does not remove the obligation itself.

认可机构 Authorized Institution (Hong Kong)

The collective term for licensed banks, restricted licence banks and deposit-taking companies authorised by the HKMA under Hong Kong's Banking Ordinance, which can be looked up in the HKMA Register of Authorized Institutions. Its English abbreviation is also AI, so it must be distinguished from the Singapore "Accredited Investor" when reading documents from the two jurisdictions.

注册机构 Registered Institution (Hong Kong)

An authorized institution registered with the SFC to carry on regulated securities activities. When the private banking arm of a Hong Kong bank deals in securities or gives investment advice, it does so in this capacity; its frontline regulator is the HKMA, and the SFC Code of Conduct also applies.

私人财富管理优化能力架构 ECF-PWM

The competency framework for private wealth management practitioners introduced by the HKMA on 24 June 2014. It applies to client-facing practitioners, with training and examinations in two modules (technical, industry and product knowledge; ethics and compliance). It was updated by an HKMA circular of 14 July 2021, which added an associate-level qualification.

认证私人财富管理师 Certified Private Wealth Professional (CPWP)

The ECF-PWM qualification certified by the Private Wealth Management Association (PWMA), obtained by practitioners who complete the relevant training and examinations; an associate-level CPWPA has also been available since 2021. Clients can ask about their relationship manager's qualification status as one reference point when checking professional background.

客户顾问能力标准 Client Advisory Competency Standards (CACS)

The competency assessment that Singapore private banking practitioners must pass, implemented alongside the Private Banking Code of Conduct launched in 2011, with continuing education requirements as well. For the required training hours, see the current documents of the Institute of Banking and Finance Singapore (IBF).

私人银行行为准则 Private Banking Code of Conduct

An industry self-regulatory code launched in 2011 by the Private Banking Advisory Group (PBAG) and now published on the website of The Association of Banks in Singapore (ABS); the current version took effect on 1 September 2020 and covers practitioner competence, client onboarding and fair dealing, among other matters. It is not law; MAS welcomed its launch in 2011.

3. Onboarding and compliance

了解你的客户 Know Your Customer (KYC)

The process by which a bank understands a client's identity, background and purpose of transactions before and throughout the business relationship; it is the foundation of anti-money laundering compliance. KYC at private banks usually goes deeper than at retail banks, covering beneficial owners, source of wealth, source of funds and the intended use of the account.

客户尽职调查 Customer Due Diligence (CDD)

A statutory process under anti-money laundering law: identifying and verifying the client and beneficial owners, understanding the purpose and nature of the business relationship, and monitoring transactions on an ongoing basis. In Hong Kong it is based on Schedule 2 to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance; in Singapore, on MAS Notice 626.

加强尽职调查 Enhanced Due Diligence (EDD)

Additional measures applied to higher-risk clients (such as politically exposed persons, complex structures, or clients connected with higher-risk jurisdictions), including senior management approval, establishing source of wealth and source of funds, and enhanced ongoing monitoring. Private banking clients fall within enhanced due diligence relatively often.

财富来源 Source of Wealth (SoW)

How a client's total assets (overall wealth) were accumulated – for example, through running a business, employment income, selling shares, inheritance or investment. Both HKMA training material from 2016 and Singapore's ACIP best practices from 2025 use this definition; precise figures are not required, but the evidence must be reasonable and coherent.

资金来源 Source of Funds (SoF)

The origin of the specific money or assets entering the business relationship this time – for example, the proceeds of a particular share sale or a transfer from a particular account. The bank checks whether the remittance route, the remitter and the declared source are consistent, and usually asks for further explanation if they are not.

政治公众人物 Politically Exposed Person (PEP)

A person who holds or has held a prominent public function, together with their family members and close associates. Under MAS Notice 626 and Hong Kong's anti-money laundering rules, establishing a business relationship with a PEP requires senior management approval, establishing source of wealth and source of funds, and enhanced ongoing monitoring.

受益所有人 Beneficial Owner

The natural person who ultimately owns or controls a client, particularly a company or trust. Banks must look through multiple layers of ownership to identify and verify this person; for a trust, the settlor, trustee, beneficiaries and protector are usually all within the scope of checks.

税务居民自我证明 Tax Residency Self-certification

A declaration completed by the client when opening an account, listing all jurisdictions of tax residence and tax identification numbers, which the financial institution uses for CRS due diligence and reporting. When circumstances change (for example, on moving abroad or acquiring a new tax residence), it must be updated promptly as the bank requires.

共同申报准则 Common Reporting Standard (CRS)

The standard for automatic exchange of financial account information for tax purposes developed by the Organisation for Economic Co-operation and Development (OECD). Hong Kong implemented the framework from 30 June 2016, Singapore began exchanging in September 2018, and the Mainland measures took effect on 1 July 2017; financial institutions report non-resident accounts, and tax authorities then exchange the information with the account holder's jurisdiction of tax residence.

4. Investment services

全权委托 Discretionary Portfolio Management

An arrangement in which the client signs a mandate agreement with the bank setting out investment objectives, risk level and restrictions, and the bank's portfolio manager decides on purchases and sales on the client's behalf; the client does not confirm each trade and pays a management fee as agreed. Some private banks offer this service only to accounts in particular booking centres.

咨询账户 Advisory Mandate

An account arrangement in which the bank provides investment advice and the client decides on each trade. Charges may be an advisory fee based on assets or per-transaction fees; the bank must meet its suitability obligations, and under arrangements such as Hong Kong's SPI regime, the way they are carried out is simplified.

仅执行 Execution-only

A service in which the bank only executes trades on the client's instructions and provides no advice. The client bears responsibility for the decision, and the bank usually does not carry out a suitability assessment for the trade, but must still comply with rules on product classification, client classification and anti-money laundering.

托管 Custody

The service of holding securities and other financial assets on the client's behalf and handling settlement, dividends and corporate actions. Assets held in custody belong to the client in law and are recorded separately from the bank's own assets; the exact degree of protection depends on the law of the booking centre and the custody agreement.

结构性产品 Structured Products

Investment products that combine a bond or deposit with derivatives, with returns linked to equities, interest rates, exchange rates and the like; they are common in private banking. Their terms are complex, principal may be lost, and they carry issuer credit risk and embedded costs; return scenarios do not represent actual results.

5. Credit and financing

Lombard 贷款 Lombard Loan / Lombard Lending

Credit secured on equities, bonds, funds or deposits held with the bank, usually as a revolving facility. A fall in the market value of the collateral may trigger a margin call or forced liquidation; in Hong Kong, share margin financing is an important part of it and is subject to HKMA supervisory guidance.

抵押率 Loan-to-Value (LTV)

The maximum ratio of the loan amount to the value of the collateral, set by the bank for each type of collateral. The HKMA letter of 22 October 2021 no longer requires the maximum LTV for shares to follow market practice, but requires banks to set it prudently and subject it to assessment. This site does not provide specific ratios.

追加保证金 Margin Call

A notice from the bank, when the collateral's value is no longer sufficient to maintain the margin ratio required by the contract, asking the client to provide additional collateral or repay within a deadline. The deadline varies by bank and by the size of the shortfall; for example, HSBC Singapore's Lombard terms for retail clients have two tiers, 60 calendar days and 5 business days.

强制平仓 Forced Liquidation

The sale of the collateral by the bank under the contract to recover the loan when the client fails to top up in time, or when the margin ratio falls below a lower liquidation level. Some contracts allow the bank to sell without first issuing a margin call; the mechanism is explained on the Lombard lending page.

保费融资 Premium Financing

An arrangement in which the client borrows from a bank to pay life insurance premiums and assigns the policy rights to the bank as collateral. In Hong Kong, the standards in the IA circular have applied to new policy applications of this kind since 1 January 2023; in Singapore, MoneySense warns that failing to repay may lead to the policy being surrendered and coverage being lost.

保单转让 Policy Assignment

The transfer by a policyholder of the rights under a policy to another party, such as a lending bank. After assignment, the assigned rights cannot be exercised without the assignee's consent; in Singapore, assigning a policy under a revocable nomination revokes that beneficiary nomination (LIA guide).

过度杠杆 Over-leveraging

A concept in Hong Kong's premium financing standards: if the lender demands early repayment, the client cannot repay in full from their own resources and can only draw on the surrender value of the policy being taken out. Insurance intermediaries must assess this risk in the affordability assessment; a bank acting as lender must consider, and disclose before drawdown, the ratio of the loan amount to the client's own financial resources (HKMA circular).

保费融资重要资料声明书 IFS-PF

The Important Facts Statement that must be signed in Hong Kong before a policy financed by premium financing is issued. It explains the financing arrangement, risks such as interest rates and collateral top-ups, and the effect of financing on the right to cancel during the cooling-off period, and is acknowledged by both the insurer and the client.

新加坡隔夜平均利率 Singapore Overnight Rate Average (SORA)

The volume-weighted average rate of unsecured overnight Singapore dollar interbank borrowing, published by MAS each business day together with 1-, 3- and 6-month compounded rates; it is commonly used as the benchmark for Singapore dollar loans. US dollar loans commonly reference SOFR.

6. Fees and benefits

托管费 Custody Fee

The fee a bank charges for holding a client's assets, usually charged periodically as a percentage of the market value of assets held, and possibly subject to a minimum charge. Rates vary by bank, asset size and agreement.

管理费 Management / Advisory Fee

The fee charged on a discretionary or advisory account as a percentage of assets under management; some arrangements add a performance fee. If the portfolio holds funds, this fee sits on top of the funds' own management fees, and the two should be added together when comparing costs.

尾随佣金 / 回佣 Trailer Fee / Retrocession

Ongoing remuneration paid by a fund house or product issuer to the distributing bank based on client holdings. In Hong Kong, it must be disclosed before or at the point of sale under paragraph 8.3 of the SFC Code of Conduct, and for fund trailer fees at least the maximum percentage receivable must be disclosed.

点差 Spread / Mark-up

The difference between the bank's dealing price and the price quoted to the client when the bank buys or sells bonds, structured products or foreign exchange; it is one source of private bank revenue. The SFC–HKMA circular of 29 October 2021 states that specific written disclosure can take the form of a percentage ceiling of the investment amount (rounded up to the nearest whole percentage point) or the equivalent dollar amount.

价格改善 Price Improvement

The benefit that arises when the bank's actual execution price is better than the client's order price. The SFC–HKMA circular of 2021 states that it should not be retained when the bank trades as agent; when the bank enters into back-to-back transactions as principal it may be retained, but this must be disclosed to, or agreed with, the client.

7. Insurance, trusts and client protection

信托提名 Trust Nomination

A form of beneficiary nomination under Singapore's Insurance Act. Only a spouse and/or children can be nominated, the nomination cannot be changed unilaterally once made, and the beneficiaries receive the policy benefits in the form of a trust. It differs from a revocable nomination, which is revoked if the policy is assigned.

私人信托公司 Private Trust Company (PTC)

A company that acts as trustee for a single family. Under Singapore's Trust Companies Act it may be exempt from licensing, but must appoint a licensed trust company to carry out its anti-money laundering and countering the financing of terrorism obligations; the structure must be designed by lawyers and trustees.

永续期 Perpetuity Period

The maximum period for which a trust can last. Section 32 of Singapore's Civil Law Act sets it at 100 years or a shorter period specified in the trust instrument; Hong Kong's 2013 trust law amendments abolished the rule against perpetuities for new trusts (as reported by a law firm; the Ordinance text prevails).

存款保障 Deposit Protection / Deposit Insurance

Statutory compensation for eligible deposits if a member bank fails, with the limit calculated per depositor per member; in Hong Kong only licensed banks are members, and in Singapore only Singapore dollar deposits are covered. Investment products and assets held in custody are outside the scope; how the limits in each jurisdiction relate to the booking centre is explained on the booking centre page.

冷静期 Cooling-off Period

The period after taking out a policy during which the policy can be cancelled without giving a reason and the premiums paid refunded (possibly subject to a market value adjustment). Hong Kong's GL29 sets it at 21 calendar days from delivery of the policy or issue of the cooling-off notice, whichever is earlier; for financed policies, the effect of the financing on the right to cancel must be explained to the client.