Wealth managers come together to tackle the key issues affecting the industry

12 April 2017

Multrees Investor Services is joined by Sandaire Family Investment Office, Stonehage Fleming, and Lincoln Private Investment Office at a roundtable discussion

·        London to remain a competitive global wealth management hub

·        UK regulation a contributing factor in London’s global appeal

·        Technology will fail to replace human touch for UHNW clients

·        The generational divide in investment strategy is becoming more prominent

Multrees Investor Services hosted a roundtable event on 11th April, which saw industry leaders discussing Brexit, tax, regulation, corporate governance, technology and investment strategy. Attendees included Alexandra Altinger, CEO of Sandaire, Matthew Fleming, Managing Partner at Stonehage Fleming, Ross Elder, Managing Partner at Lincoln Private Investment Office, and Chris Fisher, CEO of Multrees.

Alexandra Altinger, CEO of Sandaire, commented: “There is a stronger emotional connection to the UK than has previously been appreciated. London is global and open-minded. There is concern about what is changing in the UK due to Brexit, but the wealth has to go somewhere and there are few competitive alternatives. When looking at other options to the UK, it is a relative decision, there isn’t an ideal solution out there.”

Hugh Mullan, non-executive of Multrees and former UK CEO of Fidelity Investments, commented that: "UK regulation has tended to be strongly supportive of the rights and protection of the end client. That enhances the UK's case as an excellent domicile for client assets. Following Brexit, I do not see that priority changing and, in my opinion, we are very likely to continue to see further moves to strengthen the position of the end-investor as regulation continues to evolve”.

Ross Elder, managing partner of Lincoln, noticed similarities between the present and the 1999 dot-com bubble and urged restraint: “Undoubtedly there are huge advantages to robotics but nothing can replace the subjective, personalised part of what we do. Robo should ultimately help bypass wealth manager inefficiencies to allow advisers to spend time doing what they should be doing, which is focussing on their clients’ requirements and navigating markets.”

Time and budget savings, as a result of technological improvement and outsourcing, enable wealth managers and financial services providers to focus and invest in innovation, which is fundamental in attracting the next generation of UHNW clients.

Partner of Stonehage Fleming, Matthew Fleming, commented: “We’re seeing tension around the style of investment between the generations. The under 35s want their investment portfolio to make a positive contribution to society whilst making money. Whereas, and this is a massive generalisation, the older generation tend to want to make money and then do good with it. In some ways, this is driving the agenda for wealth managers.”

Changes to the wealth management industry will undoubtedly continue to develop as Article 50 negotiations transpire. As the financial services sector strives to satisfy its tech savvy and principled millennials, London will continue to remain a global wealth management hub.