What is Private Banking?
Until recently Private Banking provided services such as deposit taking and payments, asset management, brokerage, limited tax advisory services and some basic concierge-type services, offered by a single designated relationship manager taking a largely passive approach to financial decision making. These days some clients trust their private banking relationship manager with far more, sometimes including discretionary management of their assets. Private Banks have become providers of investment-related advice and look at their clients entire financial circumstances. They look at asset protecting and asset growth in the present, providing specialised structuring and financing solutions, planning retirement and passing wealth on to future generations. A possible alternative to a Private Bank is a Multi Family Office(MFO)
What are Multi Family Offices?
Multi-family offices provide a number of services similar to that of Private Banks including tax and estate planning, risk management Investment advice, access to trustee services, lifestyle management, coordination of professionals, and foundation management. Some multi-family offices are also known to offer personal services such as managing household staff and making travel arrangements. Because the bespoke services offered by access to a full MFO can be costly, The purpose of MFO is that it is a business established to meet the investment, estate planning and, in some cases, the lifestyle and tax service needs of wealthy families. Lifestyle businesses have been formed which offer a reduced number of services but are available to less wealthy individuals who have a lesser need for specialist advice.
Which Private Bank is suitable for you?
It depends on your individual circumstances. By studying carefully your individual requirements and circumstances we will provide you information about available options which allow you to compare and make informed choice.
Different Banks charge their clients in different ways. There are banks that follow the transactional model where the client is not charged any advisory fee at all. These banks rely on commissions they get by distributing third party products. There are other private banks that follow a hybrid model. In this model, the bank charges a fixed fee for certain products and advisory fee for the rest. Some of the other banks are totally advisory driven and charge the clients a percentage of assets under management. A few banks offer both a transactional model and an advisory model. Its up to clients choose what suits them. A recent industry trend is towards the advisory fee model.
We act as an introductory organisation to a number of International Private Banks and we can provide you information on many more including comparisons on fee structures. We have direct relationships with some of the most respected relationship managers and can facilitate introductions to one of your choice.
Please contact us below to find out more