What percentage of millionaires have financial advisors?
It makes a difference whether the customer bears 10,000 euros, one million euros or 15 million euros to the bank. As the investment amount increases, the advisor takes more time and offers better tailored solutions.
In short: In the departments of private banking or wealth management, as it is also called, there is a need to make more effort.
A study by the auditing and consulting company Deloitte now shows, however, that the millionaires are dissatisfied with the financial institutions responsible for such things in Europe. "There is a lack of trust," says the Reconnecting for Profit report. The consultants are mainly perceived as product sellers. "Your recommendations are often assumed to be lacking in objectivity and expertise," so the result of extensive discussions with 50 bank customers, each of whom have assets of more than $ 15 million.
Lack of independence
Above all, the accusation of "product sell-off" weighs heavily. So far, such lawsuits have mainly been brought by smaller customers with significantly fewer assets. Apparently the rich are not doing much better. They too feel chattered about products. That works well as long as the markets are rising. But since the financial crisis has cut returns, the wealthy have of course also been paying more attention to the cost-benefit profile of their custody accounts. Anyone who is dissatisfied leaves. As the study shows, more and more millionaires are therefore taking an independent head administrator who pitches the offers of the individual banks against each other.
"We are clearly noticing the increasing dissatisfaction, more and more customers are switching to us," says Andreas Grünewald, director of the independent asset management company FIVV in Munich. "The returns in many of the big banks' custody accounts are not right. Above all, they sell their own products, so there is a lack of independence," says Grünewald.
FIVV is a member of the Association of Independent Asset Managers (VuV). The 172 members, mostly led by ex-bankers, manage customer funds totaling 35 billion euros. They advertise that they lack a bank connection. Therefore, they could work more independently and would not have to consider the product range of their own institute, for example. VuV members usually manage assets from 500,000 euros. For smaller amounts, the money managers also offer fund savings plans, which then usually do not incur any commission costs for the customer, but a fixed fee - unlike the banks.
Independent financial advice has become a big topic in the last few months. With the introduction of the EU directive Mifid in November 2007, financial service providers have to disclose their fees. For many customers, this makes it clear for the first time that banking advice is not free, but is paid for using the commissions incurred when selling. For equity funds, this is up to six percent of the investment amount.
Wealthy customers have always negotiated better: In private banking they pay a fixed fee of around 1.3 percent on the managed capital. But obviously the performance of the bankers is often not right - with such high investment sums, a lot is expected. "The respondents want their finance manager to get out before the markets collapse. At the same time, they want their money to be invested in new market trends at an early stage," the Deloitte study clearly states. Of course, all investors have such wishes. What is remarkable, however, is the fact that even multimillionaires have problems finding these few very talented money managers.
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