Q: What is the biggest change you have seen in the industry since you joined?
I started in the wealth management industry in the late 1990s and one of the most significant changes has been the diversification of the workforce. Back then, the industry was male-dominated, but today, Adam & Company is moving close to a 50:50 gender split, particularly on the investment management side.
Another major change is industry consolidation. In the past, there were far more boutique firms, but now the same larger brands dominate the market. While consolidation offers brand recognition and comfort to clients, there’s a delicate balance. Firms need to be ‘big enough to matter but small enough to care’.
We’ve worked hard to maintain our brand identity, especially in a regional context. Scotland is a unique market, and what resonates here doesn’t always align with what works south of the border. Understanding and respecting these regional differences is crucial.
Q: What is the investment topic most brought up by clients/investors?
The dominance of the US market. A few key companies often referred to as the ‘magnificent seven’ have had an outsized impact on the market, which has presented both challenges and opportunities. This trend also ties into the relevance of the UK market. Historically, benchmarks were heavily UK-focused, but that has shifted significantly over time, as the UK’s market has diminished in size.
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Another area of concern for clients is economic data, especially around inflation and interest rates. Since Covid, there’s been an increased obsession with these figures, which has fostered a short-term mindset in a lot of investors. It is important to guide clients away from short-term noise and encourage them to focus on longer-term themes and diversification.
Q: What piece of regulation has had the biggest impact on your day-to-day role?
Regulatory focus on consumer value has had the biggest impact on wealth management firms. Twelve years ago, it was the Retail Distribution Review and now it’s Consumer Duty. It’s a huge piece of work behind the scenes, but it provides a very useful framework against which to judge yourself. It’s a positive move to ensure clients are being supported, given the right information, getting the right product and getting good value for money. Continuing to ensure we are delivering the right client outcomes is vital.
Another regulatory area that has a big impact day to day is anti-money laundering and Know Your Customer requirements. Educating clients on the importance of these checks and finding ways to make the process more palatable is key.
Read the rest of this article in the October issue of Portfolio Adviser magazine