Q: What is the biggest change you have seen in the industry since you joined?
The increasing administrative and regulatory burden involved in looking after clients. For context, the evolution in the regulatory framework has resulted in many welcome developments, including a more disciplined, cohesive approach to investment and a strengthened suitability framework. But while it is undoubtedly well intentioned, one must remember that we are a service industry and should not be distracted from our core purpose of achieving the best possible outcomes for one’s clients.
Q: What is the investment topic most brought up by clients/investors?
Our conversations with clients have been more politically dominated than in any year since the Trump-Brexit victories of 2016. Of greatest concern is the potential escalation in the Israel-Hamas war, extending to shipping in the Red Sea and clashes across Israel’s border with Lebanon. The stalemate in Ukraine looks set to remain, albeit with horrific attacks on civilian infrastructure.
See also: Five macro views on five regions: What will the elections mean for investors?
It is also common knowledge that over half of the world’s population goes to the polls in 2024. The ‘main event’ is the November 2024 US elections and recent polls show Donald Trump consistently ahead of president Biden, despite mounting legal challenges. However, early presidential polls are notoriously unreliable. The investment risks posed by the US election could be meaningful, particularly if Trump’s universal tariffs are enacted, and must be considered by all investors.
Q: What piece of regulation has the biggest impact on your day-to-day role?
The introduction of Consumer Duty has significantly influenced our day-to-day operations. We were pleased to ascertain we were already compliant with the regulation’s underlying principles around client value, which is a testament to our firm’s ingrained client-centric culture.
The challenges, however, lie in the meticulous documentation required to substantiate the value we provide to our clients. While our client interaction records have been comprehensive, Consumer Duty prompted a strategic re-evaluation of our management information capabilities to demonstrate this. For example, while we felt confident we meet and interact with all our clients regularly, we have had to expand our record-keeping to categorise interactions by type and document the nature of materials shared.
There are positives though: access to this management information has allowed us to identify further enhancements to our processes, aiming to elevate the delivery of client value further.
To read more visit the February edition of Portfolio Adviser Magazine
