Hong Kong authorities relaxed rules to allow high net worth individuals to access an insurance product that has been gaining traction in Singapore and the United States.

The so-called indexed universal life policy allows premium holders to pledge assets, such as equities and bonds, to the insurance company as a custodian in lieu of paying cash. It meets the demand for rich clients who seeks cash efficiency and greater flexibility.

The product - which has part of its cash value component tracking a benchmark index performance — has gained traction in the US, Bermuda and Singapore, while previously being unavailable in Hong Kong due to regulation and risk concerns.

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In a joint circular Thursday issued by the Insurance Authority and the Hong Kong Monetary Authority, the regulators said if such policies are only offered and sold to high net worth customers, who are defined as professional investors, then “there is room to offset or amend the application of certain requirements” without compromising investor protection.

HSBC plans to launch such a product in Hong Kong this year catering to the demands of ultra high net worth clients, the bank’s Global Insurance Chief Executive Officer Edward Moncreiffe said during a Hong Kong forum in December. The firm issued a $100 million indexed universal life policy in Singapore last year.

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Hong Kong is pushing hard to develop its HK$31 trillion ($4 trillion) wealth management business, as it seeks new drivers for the economy. The government proposed tax breaks and investment immigration schemes, competing against other financial hubs like Singapore.