What is Wealth Management?

This is a term often used in the private banking industry with reference to the set of specialized services aimed at Clients with significant assets with particularly complex needs.

But what exactly are we talking about?

Wealth Management can be defined as an integrated, multidisciplinary professional service aimed at typically affluent individuals and/or families, which aims to protect, enhance and pass on wealth according to their wishes and in full compliance with relevant regulations.

Let us now elaborate on some particularly significant aspects.

Wealth means not only liquid assets and financial investments, but family wealth as a whole, which may also consist of real estate, other valuable assets such as art collections, and, in the case of entrepreneurial families, the family business.

The articulation and heterogeneity of large assets generally requires a high level of specialization on the different areas by the professionals assisting the family, but above all, the presence of a figure, that of the Trusted Advisor, who is able to have an overall vision (the so-called "holistic approach") and who plays the role comparable to that of a conductor of an orchestra is essential.  

On the other hand, the achievement of the goals of asset protection, enhancement, and transmission requires the adoption of an approach in which strategy and long-term vision prevail over tactics and short-termism: in fact, these are the family's life goals and plans, which involve decisions that often produce effects that extend beyond generations.

Let us now see in a little more detail what are the main tasks of the Financial Advisor:

• First of all, he assists the family in the preparation of an inventory of the family's assets: this is a very important stage, in which the complete and correct survey through a 'documentary analysis of the assets and liabilities in the name of each member of the household is essential, including for the purpose of expressing an estimate of the value of the total assets;
• Second, it supports the household contact person in surveying needs and life plans, supporting him or her in prioritizing different goals and sharing them with other household members;
• Sets and develops the planning, typically multi-year, of interventions and functional activities to achieve the established goals;
• Collaborates with the family's other trusted professionals (e.g., the accountant, and/or the lawyer); when necessary, supports the family in identifying and selecting specialists according to specific needs;
• Monitors the activities carried out by the various specialists involved against the agreed plan, periodically updating the family on progress, any critical issues that have arisen rather than decisions to be made;
• Checks periodically with the referrer the need/opportunity to modify the objectives in light of new needs that have emerged or changes in the referral context.

Clearly, such an important role presupposes an established relationship of trust with the family and a deep understanding of family goals and dynamics. It is equally necessary for the Consultant to have technical expertise in the subject matter in order to be able to effectively grasp the needs and requirements of the family and interact with the various specialists/professionals involved from time to time.