A look back at the most read stories on thewealthnet last week....
10.
Financial crime in wealth management was flagged by the Financial Conduct Authority (FCA) as one of its supervisory priorities, and a ‘key harm’ firms in the sector must proactively help prevent. Under the threat of regulatory penalty, wealth managers need a comprehensive strategy to protect themselves and their business.
Entitled ‘FCA Expectations for Wealth Management & Stockbroking Firms’, the FCA’s November 2023 Dear CEO letter specifically identified the sector as ‘inherently high-risk for enabling and/or participating in financial crime’, including aiding money laundering, committing or falling foul of fraud, and exposure to scams and high-risk investments.
9.
Inheritance tax (IHT), gifting and not knowing how much is enough to maintain their lifestyles in later life are the top three financial concerns of wealthy Britons, according to research from RBC Wealth Management.
Across generations, IHT remains the number one concern despite ongoing speculation of a potential tax cut, jumping from 27 percent in the prior year’s survey to 35 percent.
This is equivalent to a 12 percent and 16 percent year-on-year rise for 25-34 year olds and 55-65 year olds respectively. [Read more]
8.
Tim Sargisson, the managing director of Schroders-backed Benchmark Financial Planning, left the firm.
Peter O’Sullivan, who was expected to retire, will expand his current part-time role in the business to resume the position of managing director while the firm searches for Mr Sargisson's replacement.
He joined the firm in July 2023 and was previously chief executive of Sandringham Financial Partners for seven years.
7.
The latest annual results from UBS provided yet another reminder that acquisition costs invariably turn out to be much higher than any headline fee reported.
Take UBS Global Wealth Management (GWM), the Swiss bank’s main revenue and profits generator, and arguably the division best-placed to benefit from the bargain-basement priced acquisition of Credit Suisse.
Reported, ie unadjusted, pre-tax profits fell from the $4.98 billion reported for 2022, the year prior to the merger, to $3.59 billion, a $1.39 or 27.89 percent decrease.
6.
Those that invested £1 million in an average “steady growth” portfolio in December 2003 – and left it there – would now find their investment to be worth £2.95 million, according to data from ARC.
Having collected 20 years of data, ARC discussed with thewealthnet what its private client indices can tell us about wealth managers’ performance during this period.
Taking inflation into account, real returns accounted for a more modest 3.2 percent annualised increase over the 20-year period on average.
5.
It is unlikely that many subscribers of thewealthnet have heard of Michael Lafferty. Perhaps they should. Back in 1987 Michael, who died at the end of January, launched Private Banker International (PBI) the first specialist publication devoted exclusively to private banking.
I should know because I edited it for three years during the 1990s. John Evans, thewealthnet’s former international editor, is another editor.
PBI still exists although it is no longer part of the Lafferty stable of publications. It is now published by GlobalData following the sale of the Lafferty Group’s newsletter and conferences business in 2004 to VRL, another London-based company. [Read more from Ian Orton]
4.
Waverton Investment Management hired Alexander Cottrell as a portfolio manager.
He was previously an investment director with Odey Wealth.
Mr Cottrell joined after a 10 year tenure at the hedge fund’s private client arm in London, where he specialised in running portfolios for professional investors, retail clients and entrepreneurs.
3.
Wealth managers are all too familiar with helping clients asset split on separation. Yet the adviser-client relationship is not without its own problems, and just like in love, sometimes the right call is to walk away.
Alan Smith, chief executive of Capital Asset Management, said his firm’s screening of prospective clients means a parting of the ways “rarely happens nowadays”, though he admits one such ‘break-up’ did occur last year. For Mr Smith there are some clear red lines about who he will take onto his books. It is lear from his list these are built out of some uncomfortable previous experiences. [Read more from Laura Miller]
2.
A fast growing boutique wealth manager named Marcus Holden-Craufurd head of investments.
Having been at Oberon Investments since November 2022 when he joined as an investment manager, Mr Holden-Craufurd is excited by its prospect.
Mr Holden-Craufurd’s career to date has been somewhat varied, having begun in the British Army where he served as a captain for a number of years before making the leap into wealth and investment management.
1.
NatWest Group appointed Emma Crystal as the chief executive of its wealth businesses, including Coutts. She will also become chief executive of Coutts.
She replaces Peter Flavel, who resigned last summer following the fallout from Coutts’ saga with Nigel Farage.
In this role she will report to Paul Thwaite, chief executive of NatWest and will also join NatWest’s executive committee.