Help, I m Rich!: Your Compass to a Value-Adding Private Banking Experience

Chapter 6 Who Is Managing Your Assets?

It is important to make a deliberate decision on:

• The extent to which you want to remain involved in the investment process (self-directed, advisory, or discretionary)
• Which institution is going to hold and/or manage your assets

Mr. Jones is getting the picture. Encouraged by his enthusiasm, the relationship manager decides that it would benefit the relationship in the long term if he is open from the onset about the options that Mr. Jones has when it comes to the logistics of managing his wealth. In the opinion of the relationship manager, for the relationship to last it should not be based on coincidence, but on a deliberate, informed choice.

For that reason, the relationship manager decides to share two more insights with regard to managing the assets of Mr. Jones:

1. To what extent do you, Mr. Jones, want to be involved in the management of your assets?
2. Which financial institution is the most suitable for you?

Level of Personal Involvement

Generally speaking, we identify three types of relationships with private banks, each expecting a different level of personal client involvement in the management of the portfolio.

1. Self-directed. When you are entirely self-directed you won’t require any support and advice from the bank. You know yourself exactly what to do and take full responsibility for all your investment decisions. For self-directed accounts you typically only pay a fee per transaction.
2. Advisory. You want advice from ...