Wealthy Private individuals have found in recent times that Private Banking services they have used to manage their investments are no longer being offered this service. Investors are now having to turn to Independent Financial Advisers to help them manage their investments as Private Banking services have been withdrawn for those with “investable assets” of less than £500,000.
The Private Banking sector no longer believe that they can make a profit working with these types of investor and in some cases are turning away long standing customers of many years. The change has come about as there are changes coming to the financial services sector, with the introduction of a ban on commission from 1st January 2013. Traditionally, the banking sector has worked on a transaction fee basis as opposed to an annual management fee basis.
On the other hand Independent Financial Advisers are more accustomed to working with clients on an ongoing basis and are better placed to deal with these types of clients.
What to look for if you need to find a new adviser to help manage your investments.
- Are they ready for the changes coming to the Financial Services sector
- Are they qualified
- How much will they charge you
- What do you need from your new financial adviser
- Can they offer you that service
- And ask them what service they are going to give you and at what cost
