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.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
