Q: What is the biggest change you have seen in the wealth management sector since you joined?
The divergence, and then convergence, of two traditionally separate financial industries – that of investment management and financial planning. Divergence first: in the first decade of the millennium, investment managers who might previously have provided clients with ‘friendly pointers’ were warned off giving financial planning advice on the side.
This was a result of compliance departments becoming more vigilant and spreading awareness around the limits of investment firms’ remits, as well as the requirements of the regulator. From the financial planning side, the trend towards outsourcing and model portfolio strategies accelerated, creating clear water between those responsible for planning and investment.
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During the past decade, however, the opposite has started to occur, with the convergence of investment management and financial planning in response to client demand. Firms now recognise that clients look for a holistic service and care not two figs for the historical reasons behind the separation of the financial industry.
This convergence has happened both through the amalgamation of investment and planning firms via mergers and acquisitions, and through firms extending their regulatory permissions in either direction.
Q: What is the investment topic most often brought up by your clients?
At the moment, probably the war in Ukraine. The investment community may have largely moved back to central bank watching, yet clients have Ukraine, and the effect of the war on inflation and the cost of living, front-and-centre in their thinking.
Read the full article in Portfolio Adviser’s July/August 2023 magazine
