SMU Classification: Restricted

Lee Kong Chian School of Business

Academic Year 2019/20
Term 1

FNCE218 WEALTH MANAGEMENT & THE LAW

Instructor Name : Dr T. Mandy Tham
Title : Assistant Professor of Finance (Education)
Tel : 6828 0498
Email : mandytham@smu.edu.sg
Office : LKCSB 4066
Office Hour : By appointment only

Instructor Name : Ms Alice NG

Title : Adjunct Faculty of Finance
Tel : 83835117
Email : aliceng@smu.edu.sg
Office : LKCSB Level 5 Adjunct Office
Office Hour : By appointment only

COURSE DESCRIPTION
This course will introduce students to the private wealth management industry in Singapore and to the legal and
regulatory framework that governs the industry. It will acquaint students with relevant provisions of the Securities
and Futures Act, the Financial Advisors Act and applicable regulations, notices, guidelines and will include
discussions on licensing and business conduct requirements. Applicable anti-money laundering regulations are also
covered as part of the required due diligence process of understanding client’s needs and source of funds.

The course will also introduce students to legal structuring vehicles often used in private wealth management such
as trusts, foundations and passive investment companies for wealth preservation and wealth transfer purposes.
The various types of trusts, how they are set up and how they meet various client objectives, the key parties
involved and duties of trustees will be discussed. The laws under which foundations are established, the essential
features of and the main differences between trusts and foundations will be considered. Finally, students will be
expected to apply the applicable legal principles and concepts to case studies.

LEARNING OBJECTIVES
By the end of this course, students will be able to:
- Describe the legal and regulatory framework governing the private wealth management industry in
Singapore.
- Understand the typical tools used in wealth planning such as wills, joint accounts, companies, trusts and
foundations, insurance solutions, their essential features, uses and differences.
- Apply these tools to estate planning and succession planning.

PRE-REQUISITE/ CO-REQUISITE/ MUTUALLY EXCLUSIVE COURSE(S)

Please refer to the Course Catalogue on OASIS for the most updated list of pre-requisites / co-requisites for this
particular course. Do note that if this course has a co-requisite, it means that the course has to be taken together
with another course. Dropping one course during BOSS bidding would result in both courses being dropped at
the same time.

ASSESSMENT METHODS
Class Participation 10%
Group Project 15%
Mini-Quiz 10%
Mid-term Quiz 15%
Final Exam 50%

Faculty have been instructed not to reuse questions verbatim from past year papers or published test banks, for
the graded continuous assessments and examinations in this course.

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ACADEMIC INTEGRITY
All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of
academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work
of other students) are serious offences.

All work (whether oral or written) submitted for purposes of assessment must be the student’s own work. Penalties
for violation of the policy range from zero marks for the component assessment to expulsion, depending on the
nature of the offence.

When in doubt, students should consult the course instructor. Details on the SMU Code of Academic Integrity may
be accessed at http://www.smuscd.org/resources.html.

ACCESSIBILITY
SMU strives to make learning experiences accessible for all. If you anticipate or experience physical or academic
barriers due to disability, please let me know immediately. You are also welcome to contact the university's disability
services team if you have questions or concerns about academic provisions: included@smu.edu.sg.

Please be aware that the accessible tables in our seminar room should remain available for students who require
them.

EMERGENCY PREPAREDNESS FOR TEACHING AND LEARNING (EPTL)

Where there is an emergency that makes it infeasible to have classes on campus, classes will be conducted online
via WebEx, with no disruption to the schedule. To familiarise students with the WebEx platform, part of this course
may be conducted online. The instructor will inform students of which classes, if any, will be conducted as part of
this EPTL initiative.

INSTRUCTIONAL METHODS
Interactive class seminars with case studies, real examples and group project.

Participation:
You are required to attend each lesson. There are no excuses for absence unless you are ill with a valid medical
certificate, or representing the school or SMU at national or international competitions (evidential document
required). You are expected to participate actively and interactively, with due respect for each other. The more
you participate, the more you learn. The instructors look forward to consultative dialogue with you.

Group project:
There will be one group project assigned by Ms Alice Ng. Each group should have at most 5 members. You may
form your own group. There will be an in-class presentation (15 mins per group) and each group must submit a
written report. The presentation and written report will contribute 6% and 6% of your group project score,
respectively. Each member of the group will have the same presentation and written report scores. The remaining
3% will come from a peer evaluation. Hence, each member of the group may have a different overall score for the
project once peer evaluation is incorporated. Students will be given 0% for the group project if they are found to
be free-riding on other members.

Quizzes
There will be two closed book quizzes. Both quizzes will be conducted in class via elearn with lockdown browser.
You are allowed to bring in one A4-size paper with writings (typed or handwritten) on both sides for each quiz.
Financial calculators are allowed. If you missed the mini-quiz with acceptable reasons supported by valid evidential
documents, the score for the mini-quiz will take on the score of your mid-term quiz. If you missed the mid-term
quiz with acceptable reasons, the score for mid-term quiz will take on the score of your final exam. There will be
no make-up quizzes. You will be assigned a score of 0% if you missed the quizzes without getting prior approval from
the instructor on your reason for absence.

Final Exam
The final exam is 2-hour, closed book. You are allowed to bring one A4-size paper with writings (typed or
handwritten). Financial calculators are allowed. Foreign students may bring in a dictionary (no HP). 50% of the exam
will cover Dr. Tham’s materials and 50% will cover Ms Ng’s materials.

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RECOMMENDED TEXT AND READINGS

Lee ChiWi, The Rockwills Guide to Succession and Trusts in Wealth Management

Private Banking Code of Conduct. [https://abs.org.sg/docs/library/pb-code-of-conduct--8-jan-2019.pdf]

MAS Notice 626 Notice on Prevention of Money Laundering and Countering the Financing of Terrorism – Banks
[http://www.mas.gov.sg/Regulations-and-Financial-Stability/Anti-Money-Laundering-Countering-The-Financing-Of-
Terrorism-And-Targeted-Financial-Sanctions/Anti-Money-Laundering-and-Countering-the-Financing-of-
Terrorism/Notices-and-Guidelines/2015/MAS-Notice-626-Notice-30-Nov-2015.aspx

WEEKLY LESSON PLANS1

Week Topic Readings

1 Overview and key issues in private wealth management and wealth Lecture notes
planning
- Trends and market segmentation
- Wealth accumulation, preservation and transfer
- Disruption

Dr. T. Mandy Tham

2 Wealth Planning needs of HNW clients beyond traditional Lecture notes

investments
- Asset protection
- Mobility planning
- Estate equalization
- Family business
- Charity
- Unconventional family structure
- Tax planning
- Special needs children/parents
- Passion investing

Case analyses

Legal regimes and implications for wealth planning

- Civil law versus common law
- Country of residence, marital law, forced heirship
- Community property regime

Dr. T. Mandy Tham

3 Legal regimes and implications for wealth planning cont’d Lecture notes

- Separate property regime

- Asset location – movable vs immovable
- Estate taxes, gift taxes
- Account types
- Investment Horizon

Dr. T. Mandy Tham

4 Quiz 1 (40 mins) Bring laptop for

quiz
Legal vehicles /Tools in the Wealth Planning Toolbox
- Joint ownership Lecture notes
- Wills
- Companies
- Insurance
- Case examples

Dr. T. Mandy Tham

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The schedule is tentative and subject to change. Any change will be announced in advance.
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5 Legal vehicles /Tools in the Wealth Planning Toolbox cont’d Lecture notes
- Trust & foundation

Estate and Succession Planning

- Family business succession planning
- Estate Planning
- Case examples
Review of Quiz 1
Dr. T. Mandy Tham

6 Mid-term quiz (1 hour 15 mins) Bring laptop for

quiz
Psychological barriers against wealth planning
- Common objectives to wealth planning by HNWIs Lecture notes
- How to overcome these objectives

Dr. T. Mandy Tham

7 Legal and Regulatory Framework for the Private Wealth Lecture notes
Management Industry
1) Authorities in Singapore
2) Rules and Legislations
3) Covered Entities and Persons
4) Disciplinary outcome of non compliance
Ms Alice NG
8 Mid-term break
9 Client profiling, Know Your Client Lecture notes
1) Due diligence
2) Need analysis & Risk Profiling
3) Product Suitability & documentation
4) Case Studies
Ms Alice NG
10 Anti-money laundering and Counter Financing of Terrorism Lecture notes
1) MAS 626
2) 1MDB - Case Study
Ms Alice NG
11 Wealth Management Compliance Advisory Lecture notes
1) Code of Conduct
2) Type of Misconducts
3) Industry Wealth Management Speaker sharing session - “Role of
Compliance in the Bank”

Ms Alice NG
12 Compliance functions and Ethics Lecture notes
1) Compliance functions and its roles
2) Complaint handling
3) Disciplinary
4) Confidentiality
Ms Alice NG
13 Group presentation Lecture notes

Revision
Ms Alice NG
14 Study break
15 Final exam