Counting down the top stories on thewealthnet from last week....
10.
NatWest private banking – of which Coutts is the main component – reduced operating profits by a third in 2023.
In its full year results to 31 December 2023, operating profits decreased to £291 million from £436 million a year earlier.
Total income dropped by 6.3 percent or £66 million in the year from £1.06 billion to £950 million. The bank said this was due to lower deposit balances with mix shifting from non-interest bearing to interest bearing balances, as customers moved to savings products offering higher returns. [Read more from Katie Royals here]
9.
Reciprocal relationships between wealth managers and lawyers and accountants can create a holistic service for clients, and a rewarding ‘quid pro quo’ of work referrals. Finding and maintaining these connections can be tricky. Those making it work shared their secrets – and red flags.
As a financial adviser turned law firm owner, David Robinson, co-founder at Wildcat Law, is a rare breed. But his unusual position gives him a good view on how the two professions can successfully co-advise.
“Working together enables each party to see the other in action and makes it easier to position the benefits of their services to your clients,” says Mr Robinson. “Communication is key,” he says, adding “the biggest red flag for me is a one sided relationship, referrals have to work both ways”. [Read more from Laura Miller]
8.
Deutsche Bank revealed the details of its future coverage of ultra-high net worth (UHNW) clients in its private bank in Germany.
As part of the reorganisation of its private bank business, the bank had combined wealth management and private banking in the home market under the leadership of Lars Stoy in October 2023.
Stefanie Rühl-Hoffmann, previously head of central-south region, has been given responsibility for the UHNW business.
7.
Heart shaped balloons were not the only thing being inflated this Valentine’s Day, with UK inflation holding steady in January and driving up prices by 4.0 percent year-on-year, unchanged from December 2023’s figure.
This “sideways” move was lower than consensus expectations, which had predicted a small uptick to 4.2 percent.
Wednesday's (14/02/2024) figure, while better than expected, is unlikely to be the love note the Bank of England would have been hoping for.
Daniel Lewis
6.
Wealth manager Evelyn Partners appointed Daniel Lewis as an investment director in its Chelmsford office.
Mr Lewis' appointment to the Chelmsford office comes after the acquisition in April 2023 of Ashcroft Partnership, a firm of Chartered accountants and tax specialists based in Cambridge city centre. The firm said these two events demonstrate its committment to the region.
Prior to joining Evelyn Partners, Mr Lewis spent 22 years as an investment manager at Quilter Cheviot.
5.
The acronym (GRANOLAS) may have a resemblance to a breakfast cereal.
But according to an investment note written by Goldman Sachs analyst Guillaume Jaisson, the 11 European stocks encapsulated by GRANOLAS - GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH , AstraZeneca, SAP and Sanofi - could provide suitable diversification to portfolios dominated by the “Magnificent 7”* US technology stocks that have powered the S&P 500 index to record highs.
Although its collective performance over the past few years has not quite matched the Magnificent 7, the GRANOLAS outperform on a risk adjusted basis, according to Mr Jaisson. [Read more from Ian Orton]
4.
The Financial Conduct Authority (FCA) fined Floris Jakobus Huisamen, former director of London Capital & Finance plc (LCF), £31,800 and banned him from working in financial services.
He was responsible for compliance at LCF but recklessly signed off hundreds of financial promotions, which contributed to thousands of investors being misled, the FCA said.
LCF marketed minibonds to retail investors. The regulator found that financial promotions, signed off by Mr Huisamen, presented a misleading picture of the minibonds, making them appear as a far more attractive investment than they were.
3.
Here is a paradox. To most people wealth management is closely associated with asset and investment management. But the excellence - or otherwise - of a wealth manager’s investment management offering is rarely considered to be of critical importance when it comes to establishing a competitive advantage.
Investment management was conspicuous by its near absence in the list of imperatives addressed in the annual wealth management reports produced by the big management consultants.
The nearest most reports consulted for the purposes of this article got to investment management was when it came to ESG investing. [Read more here from Ian Orton]
Barbara Kane
2.
LGT Wealth Management appointed Barbara Kane as chief risk officer (CRO).
She replaced Helen Whelan, who was head of risk for over six years. Ms Whelan, who was also a member of the management board, left the business after more than 15 years at LGT Wealth Management.
Ms Kane worked at LGT Wealth Management for almost nine years and was most recently head of compliance and legal. She took on responsibility for risk in addition to this role.
Mark Haines
1.
JM Finn appointed Mark Haines as chief operating officer.
Formerly of Brewin Dolphin, a wealth manager originating in 1762, where he held various change management roles and latterly was chief technology officer, Mr Haines has over 20 years’ experience across operations, technology and change.
Throughout his career, he also worked for global investment company abrdn, Alpha Financial Markets Consulting and Accenture.