NEW YORK/HONG KONG -- Private banking specialist VP Bank Asia's Hong Kong office will shut down after its chief executive officer and chief operations officer resigned Thursday, according to people with knowledge of the matter.
Pamela Hsu Phua, chief executive officer of VP Bank Asia, and Heline Lam, chief operating officer, cited a difference in expectations from headquarters as a reason for stepping down, according to several people familiar with their resignations.
VP Bank confirmed the resignations and said it would continue to focus on Asia through its Singapore operation.
"Nothing will change for existing clients, who will continue to be advised locally as part of a fly-in, fly-out model," the bank said in an email. "The Asia region, where VP Bank has recorded double-digit growth rates in the intermediaries business in recent years, remains important for our bank."
Phua joined the Liechtenstein-based VP Bank in July 2021 after two years at Pictet as head of Asia Family Office. She worked at Julius Baer and Credit Suisse in their private banking units.
Lam became COO in April this year after more than three years as chief of staff in Hong Kong.
It is unclear when the Hong Kong office, which has nine staff including relationship managers, will completely close, but people familiar with the matter said the company was already in discussions with the city's regulators.
VP Bank is one of the largest banks in Liechtenstein and established its Hong Kong office in 2006. It launched its Singapore office in 2007 and received a banking license from the Monetary Authority of Singapore the following year.
VP Bank's closure comes as other wealth managers also shift focus to other Asian markets like Singapore. Swiss manager GAM Investments is closing its 39-year-old Hong Kong office and relocating some investment professionals to its Singapore office.
Facing competition from Singapore, the Hong Kong government has in recent years ramped up plans to attract global wealth into the city, including encouraging family office setups. The two cities have been competing for mainland China wealth going offshore as the domestic economy struggles to recover and mainland stock market performance suffers.
VP Bank signed a cooperation pact with Hywin Wealth Management in 2021, acquiring a 3.4% stake in the parent company. Hywin was one of China's largest providers of real estate wealth management products and suffered badly after the country's property market slumped. VP Bank said it did not distribute Hywin's real estate products.
In a bid to strengthen itself as a financial hub, Hong Kong amended laws last year to exempt tax on profits for family offices in Hong Kong but its push to become a wealth hub in the region has fallen flat with the ultrarich.
Some companies, however, are still expanding in Hong Kong. Swiss private equity firm Partners Group announced the opening of a Hong Kong office in June to attract Chinese wealth going offshore, while Singapore banks like OCBC and DBS have ramped up hiring private bankers in Hong Kong this year.
