Wealth Managers – Trusted Advisors

I’ve heard it said that wealth managers are primarily ‘relationship managers’ and this doesn’t surprise me in the least, ‘People buy people’.

All private client advisors rely on trust. If your client does not have trust in you, they will worry unduly and ultimately the relationship between client and advisor will break down.

When clients entrust the management of their wealth to an advisor, they trust them with the security they have in place for their family and loved ones. There are few times in life that clients place such a vast amount of responsibility with one advisor. Another example is when a client makes a Will; they place their entire estate in the hands of their legal advisor with trust that they will put provisions in place to make their wishes effective.

How are wealth managers, relationship managers, building trust?

One method is to take a holistic approach to wealth management, to look at the full spectrum of needs of the client and facilitate them to put measures in place to deal with each need. Increasing wealth managers are encouraging clients to take a comprehensive view of their wealth management to include succession of wealth and indeed to make provisions for devastating life events, such as a loss of capacity.

This involves wealth managers facilitating clients to become educated in the areas of Wills and Enduring Powers of Attorney and advising them of the importance of same.

These conversations between client and advisor are protecting the wealth management structures already in place and insulating them from sudden liquidation. Clients are often surprised to learn that in the event of a loss of capacity, with no client Enduring Power of Attorney in place, the default position is to have the person declared as a Ward of Court and liquidate their assets and have them lodged with the court. This can result in a total frustration of the scheme of wealth management in place and indeed the wishes of the client and their next of kin.

Thus, a loss of capacity can often mean a loss of client to the wealth manager and can be frustrating to the advisor in whom such trust has been placed.

Wealth managers are trusted by clients with whom they have often lifelong relationships with. Trusted advisors must consider long-term protection of their clients and facilitate clients to protect against loss of capacity and provide for the succession of wealth.

If you are a wealth manager or financial advisor and would like to offer your clients a more holistic and protective service contact JR Plunkett on 01 234 3732 or via email at info@jrplunkett.ie and talk to us first about how we can facilitate the protection of your clients and their wishes.