High-net-worth clients desert wealth management firms and advisers
Nearly half of all Australian high-net-worth clients (HNW) lost confidence in their wealth management firms and financial advisers during the downturn, leading to 26 per cent of all HNW clients withdrawing their assets or leaving the firm altogether in 2008, according to a Merrill Lynch wealth management survey.
Seventy eight per cent of HNW clients also lost trust in the regulatory bodies during 2008.
The survey, conducted with Capgemini Financial Services, also found that HNW clients below the age of 45 were more likely to leave their wealth management firm than older clients, and advisers who were older than 41 and worked in teams were more likely to hold onto their clients during 2008.
The survey said wealth management firms need to address the need for greater transparency and simple products if they want to hold on to their clients, including improving the quality of their reports and statements, upgrading their online access and capabilities, and putting a greater priority on fee structures and product and investment options.
AUTHOR
Benjamin Levy
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