FOREWORD | OUR RESEARCH | 2020 AND COVID-19 | 1. TRANSPARENCY | 2. RELOCATION | 3. FAMILY & GENERATIONAL WEALTH | 4. THE ADVISER OF THE FUTURE | ABOUT BDO
INTRODUCTION | TECHNOLOGICAL ACCELERATION
UNDERSTANDING, TRUST AND A 360° PERSPECTIVE THE ADVISER OF THE FUTURE
With such sweeping change, HNWIs are placing new expectations upon the advisory
Emotional intelligence and the ability to build rapport and trust are now pre-requisites. As one wealth management professional says, the adviser of the future must “be a good listener”, make the client comfortable and avoid focusing on “touting and selling their wares”.
specialisms. Clearly in such a complex, high-stakes environment, HNWIs do not expect one individual to have every solution to every problem.
Clients are becoming more purposeful and aligned in their approach – nothing sits in a silo anymore and advisers need to be able to respond to this. The private client advisory
community. The adviser of the future must respond to the challenges brought by new trends in transparency, relocation as demonstrated by our findings so far, and as necessitated by the HNWI and their family. While a
Therefore, an appreciation for the bespoke nature of advice must also mean an adviser acknowledging their own limits. Maintaining a network of trusted associates with expertise in fields outside of their own is key.
mix involves different players and roles, depending on the circumstances and needs of the client. Alongside the traditional specialisms of each adviser – whether that is wealth management,
“If you don’t have 360° views, you can be the Ronaldo of taxes but you won’t be successful.”
“Trust is key and human interaction is central to that.”
One consultant who provides guidance on engaging financial
advisers agrees that “it’s about psychology; people in the finance world are too often focused on selling,” while another funds and family office solutions specialist summarises “trust is key and human interaction is central to that”. THE NETWORK REQUIREMENT Wealth owners appreciate advisers that can take a more holistic approach which considers the big picture. “A big mis-step is not seeing the wood for the trees,” says one investment manager. Challenges come in all shapes and sizes and they do not respect qualifications, so thinking holistically does not mean that your advisers must sacrifice their
“Conducting the orchestra is a big part of it,” says a UK-based lawyer. “Keep your political and emotional antennae waving. You don’t want the trombone playing during the prelude.” If different advisers are too focused on their own area of expertise, says one trusts and estates attorney, they can “act as centrifugal forces and pull attention away from the centre”. Many times, it may not be self-interest that motivates them, but merely a reflection of how an adviser has been trained. “Litigators are trained to litigate,” says the attorney. “If you’ve got a squirrel gun, everything looks like a squirrel.” Nonetheless, if your adviser lacks awareness and appreciation of your overall position, plans and ambitions, you need to seek counsel elsewhere.
investment management, tax law or accounting – new expectations are being placed on the advisory community. Yesterday’s point of difference may be today’s minimum requirement. There remains a role for the specialists, of course, but the game has changed. Before, one US attorney says wealth owners may have treated some professional advisers “like the Oracle of Delphi” where “clients came in offering sacrifices of money and listened to the cryptic words of a partner in a corner office before being ushered out by acolytes”. Not anymore.
bedrock of technical expertise is expected, softer skills have risen in value. What your adviser knows, how they deliver it and who they know all matter. The world is getting more complex and the repercussions of getting it wrong have changed with the internet and social media – advisers need to help clients see the big picture and enable them to make decisions with their eyes open. If your adviser does not have “360° views,” says one professional services consultant, they can be “the Ronaldo of taxes” but they still won’t be successful. “Non-technical advice is at least 50% of the game.”
WORLD OF PRIVATE CLIENTS | NOVEMBER 2020 24
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