Top three tips of hiring a private #banker

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Choosing an appropriate wealth management firm for your money is an important business. Some client advisors just want your money and they have not interest in managing your money well. Others well meaning private bankers may have interest in managing your money but may be too busy trying to win businesses and as a result, delegate your portfolio to junior inexperienced bankers and assistants.  Many of these assistants are usually way too green and incompetent on an operational level, as a result you may experience slow responses, missing trade confirmations or worst, sub-par investment advice and wrong trade execution.

So the question is. how do you select your private banker?

1. The size of the private bank does matter

International investment banks that offer private banking services such as UBS or Citi are, generally, more resourceful, they have bigger research departments, more client service staff and subject matter experts. That makes banks such as Merrill Lynch, Credit Suisse and JP Morgan more attractive than smaller, boutique banks. As a client, a bigger size means you will have access to better proprietary equity research, more secured e-banking system, and certain exclusive investment seminars.

2. Do seek multiple opinions before deciding on one private banker
Many wealth management clients become friends of advisers. The references provided by client advisers therefore don’t actually mean much as neutral or negative feedbacks are automatically left out by the advisers when they try to win your business. You should find out as much about the bank and the advisers themselves as possible, before deciding to do business with them.

Keep these questions in mind:

• Does the adviser know about the industry I work in?
• Who exactly will be managing my money, the adviser or his assistants?
• What is the industry reputation of this private bank?
• Is the firm troubled by any compliance or regulatory issues recently?
• What is my level of risk tolerance?
• What type of online banking services does the bank offer? How often do I get statements?
• Does the bank have an in-house trading team?

3.Do specify your investment preference
Some investors trade emerging market products heavily while others only invest locally. It is your right to ask how your account is going to be covered. Good private banks have country-specific teams of advisers. If you reside in country A but expect to invest heavily in country B, consider opening an offshore account in country B directly.

Find out more about private banking practices and interact with other private banks at our 8th Annual Private Banking Asia 2012 event.

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