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
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
