All articles by PBI Editorial
PBI Editorial
Financial planning on the up
As clients reprioritise their investment attitude and demand clarity on tax, some are seeing an opportunity to build fee revenue.Wealth managers are placing an emphasis on financial planning as clients ask for advice on how to cope with increasing complexity and scrutiny imposed by regulators.Mapping out objectives with clients can be an effective tool for wealth managers on both customer acquisition and retention as well as to grow assets under management But, according to research from consultancy Aite, offering the service presents wealth managers something of a dilemma.On one hand, they have been advising clients who have just lost as much as half of their assets, which has almost certainly resulted in substantial loss of credibility, the report says.On the other hand, these consumers need help from skilled advisers to find the best strategy for achieving the goals that are important to them.The report, which focuses on US financial advisers, argues it is important for wealth managers to engage in a difficult conversation with clients, discussing which parts of their plans to maintain and which to abandon
Swiss, other offshore centres concede on banking secrecy
With stunning speed, offshore wealth centres ranging from Switzerland to Singapore have made concessions on banking secrecy a principle which has long been targeted by the OECD group of nations determined to stamp out tax evasion.
The PBI Awards 2009: The most sought-after prize in wealth
Nominations are now being accepted for the 2009 Private Banker International Global Wealth Awards Considered to be the most prestigious accolades in the wealth industry for excellence and best practice, winners are due to be announced this October The awards are particularly relevant this year, as the wealth industry adapts to the most testing period in global private bankings recent history.
C Hoare & Co top in client satisfaction
Reputational damage suffered by wealth managers over the past year has hit home, with overall client satisfaction in the UK declining from good to satisfactory, according to recent research But those which have maintained their credibility, like top-performer C Hoare & Co, have managed to keep clients happy. Reputation and the ability to provide strong financial advice are two of the most important considerations for UK clients when choosing their wealth manager, according to a recent report.
BofA job cuts total 1,600 as it consolidates
(FREE) Bank of America is merging its Premier Banking unit into Merrill Lynch Global Wealth Management and cutting as many as 1,600 jobs as it looks to consolidate its sprawling wealth management empire in the US. A spokesman would not confirm the number of job losses the move will involve, but said it would form part of the three-year 30,000 to 35,000 head count reduction outlined when Merrill was bought by Bank of America (BofA).
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Compliance tops to-do lists
PBIs Hong Kong Forum showed Asia-Pacific wealth managers are expecting increasing oversight from regulators and higher costs as the new financial services landscape starts to take shape But this burden can be offset by growing organically in a market in which only 20 percent of HNW clients have a private bank Regulatory and compliance requirements, winning client confidence and managing risks are the three top priorities for private bankers in the Asia-Pacific region, according to a Private Banker International poll.
Onshore models become key as margins are squeezed
Onshore business models are becoming vastly more important for private banks in 2008 as they seek to expand their businesses because of eroding profit margins As client preferences have shifted from structured, often complex products, to more vanilla offerings and assets under management have fallen, banks have been forced to review their cost bases and look at new business models. UK-based SG Hambros is one bank which is starting to reap the benefits from an onshore drive it started in 2007
Julius Baer plays its ace card
(Free) The youngest-ever chief executive of a major Swiss bank has been appointed in the shape of Boris Collardi, the 34-year-old who has taken the leadership of Bank Julius Baer. Currently serving as Baers chief operating officer, he will succeed Hans de Gier in the CEO role. De Gier was made CEO on a temporary basis to fill the vacuum at the top of the bank after the death of Alex Widmer, who is believed to have taken his own life, last December.
New UBS chief faces painful beginning
(Free) UBS will report a loss of just under CHF2 billion ($1.7 billion) in the first quarter and client outflows of CHF23 billion, Oswald Gruebel, the banks recently-appointed CEO, said in a speech. The result are a big disappointment after the bank previously declared it had had an improved start to the year, with client inflows turning positive after outflows of CHF123 billion in 2008. Gruebel said the outflows were mainly a result of the announcement of settlements with US authorities in connection with their investigations into cross-border services for US private clients.
Odyssey seals further UniCredit contract
(Free) UniCredit’s private bank has agreed a deal with Odyssey Financial Technologies to provide portfolio management and advisory functions in Austria, Italy and Luxembourg. The deal means UniCredits Italian private bank, Bank Austria and HVB Luxembourg will be hooked up to Odysseys TripleA Plus platform, standardising the technology being used in the private bank. It follows implementation of the same product at HypoVereinsbank Wealth Management and DAB Bank, both in Germany, and Schoellerbank in Austria, which are all UniCredit subsidiaries.