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 shift in scale and consolidation has led to substantial growth in large privately owned licensees, which have tipped past 20 per cent of advisers for the first time to make up 28.3 per cent of the industry.
ETF providers Betashares and BlackRock are reporting increased flows for currency hedged vehicles, but an adviser has warned on the potential tax implications of changing currency.
Bravura chair Matthew Quinn is to step down later this year, following the exit of CEO Andrew Russell, while its future priority is digital advice in Australia.
Financial advice has an important role to play in navigating family discussions around inheritance, according to CFS, with younger generations expecting a windfall of more than $500,000 while older ones try to meet their retirement needs.
