Wealth Management News

Wealth Management News

UBS inks major deal with Japanese banking giant

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

The Swiss bank has revealed plans to launch a comprehensive strategic wealth management partnership in Japan. UBS and Sumitomo Mitsui Trust Holdings Inc. (SuMi Trust Holdings) have agreed to establish a joint venture, 51 percent owned by UBS, that will offer products, investment advice and services beyond what either UBS Global Wealth Management or SuMi Trust Holdings is currently able to deliver on its own. The JV will open UBS’s current wealth management customer base to a full range of Japanese real estate and trust services, while SuMi Trust Holdings’ clients – one of the largest pools of high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals in Japan – will be able to access UBS’s wealth management services, including securities trading, research and advisory capabilities.

“No wealth management firm today provides this range of offerings to Japanese clients under a single roof. UBS expects the new joint venture to fill this gap by offering expanded products and services to clients from both franchises,” UBS said in a statement. This is the Japanese market’s first-ever wealth management partnership developed between an international financial group and a Japanese trust bank. Subject to receiving all necessary regulatory approvals, the two companies plan to begin offering each other’s products and services to their respective current and future clients from the end of 2019. Also subject to approvals, these activities will ultimately be incorporated into a new co-branded joint venture company by early 2021.”

The rest of this article can be found at investordaily.com.au.

Compliance Culture Must Start with ‘Why?’

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

A good culture of compliance within wealth management businesses must start with why certain regulatory measures are being implemented in the first place, according to a panel of compliance experts. Speaking exclusively on the InvestorDaily webcast yesterday, Advice Compliance Support managing director Nikolas Kloufetos said that staff they need to understand why they’re undertaking compliance measures, noting it’s not enough for staff to simply be aware of them. “For example, you’ve got 10 documents and need to make sure [a certain] sentence is on all of them. Well, why are you doing that?” he said.

“If you start off with that premise then you might actually end up with a more concise document by removing stuff that may not need to be there. That’s just one example – maybe some kind of training, not necessarily on how you do it, but why you do it, and what the impact is across the organisation and on the customer.” Mayflower Consulting founder and chief executive Sarah Penn noted that, in an organisation with a good compliance culture, the customer has to be at the heart of what people do. However, she added that organisations also need to think about the current customer in the future, and not just in the present.

The rest of this article can be found at investordaily.com.au.

CFA Recommends Sweeping Reforms to Wealth Sector

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

The global CFA Institute and its Australian subsidiary have released 10 major recommendations for reform in the wealth management industry and argue that simply disclosing vertically integrated conflicts is not enough. In a 60-page report titled Professionalising Financial Advice, the CFA Institute and CFA Societies Australia note that they do not see a single solution to the problems highlighted by the Hayne royal commission.  “Rather, we believe that reforms are needed in several areas, and that all these areas must be addressed together to ensure better outcomes for financial advice industry clients,” the Institute said.

“Prior to the Hayne royal commission, Australia has had many inquiries and reviews of the financial sector, which have produced a long list of recommendations, ranging from structural reforms and policy changes, to establishment of new regulatory bodies, to moves to improve professionalism and education standards in the industry.” The CFA Institute said it is clear that the effectiveness of reforms to date has been “questionable” and argues there is still much room for improvement in terms of outcomes for consumers. “Strong steps must be taken this time to ensure genuine, lasting change in the financial advice industry in Australia. Without such steps, problems will continue to recur, with no real change in the way businesses operate, as they have, following previous inquiries.”

The rest of this article can be found at investordaily.com.au.

Australians’ Personal Wealth Declining

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

Australians’ personal wealth has diminished according to Roy Morgan, with the market researcher finding the country’s gross personal assets – including owner-occupied homes – were at the lowest level of 2018 in the December quarter, dropping by 5 per cent from the previous quarter. The market researcher said Australians’ personal wealth came to $9.7 trillion for the final quarter, a drop of $512 billion from when it was $10.2 trillion in the September quarter. Net wealth (after debt) also decreased by 4.3 per cent to $8.6 billion from $8.9 billion, the survey found.

Average gross household wealth was also found to be at the lowest it has been in the last 12 months, at $1.01 million, a 5.4 per cent below the September quarter. The analysis said average gross wealth per capita also hit a yearly low, having fallen by 5.4 per cent to $475,000, from $502,000 in September. The value of owner-occupied homes saw a decline of 5.2 per cent or $270 billion, accounting for more than half of the decline at 52.7 per cent in gross personal wealth for the quarter.

The rest of this article can be found at investordaily.com.au.

Macquarie assets poised to grow

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

Macquarie Group is well placed for growth in its wealth management, according to Morgan Stanley, which expects the bank’s gross inflows in its alternative assets sector to more than double in 2H19. The report has also forecasted Macquarie’s Investment management flows to improve from flat in FY18-19 to around 3.5 per cent in FY20-21, with stronger asset management and commodities revenue to drive 2 per cent of its earnings per share upgrades. Morgan Stanley has upgraded gross inflows for the alternative assets business Macquarie Infrastructure and Real Assets (MIRA) for the second half, now expecting around $20 billion instead of its prior $8.5 billion, citing reasons including the firm gaining external management of the $2.5 billion The Infrastructure Fund (TIF) in Australia.

Alternative allocations will rise from around 5 per cent currently to 6 per cent by 2023, the research said, with assets under management (AUM) to grow from $8.4 trillion to $14 trillion. Morgan Stanley said MIRA will be one of the players best positioned to tap into the global sector’s growth. The analysis expects the company to gain around 15 per cent growth for FY19, in line with its guidance.

The rest of this article can be found at investordaily.com.au.

Volt Bank Partners with Wealth Platform

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

Volt Bank has formed a technology alliance with wealth management platform Spitfire to set a new standard for banking and wealth management integration. Under the new alliance Spitfire clients will be able to access the neobank Volt’s soon to be launched deposit products in an effort for the bank to cement its position as a ‘one stop shop’ for investors. Customers of the two companies will have the ability to view and trade their assets in a single portal, including viewing and trading global assets.

Volt co-founder and chief executive Steve Weston said the collaboration between the two companies made sense as they shared the same vision. “Spitfire and Volt share an ambition to improve their customers’ lives through technology. This partnership will contribute to a seamless and transparent investment experience and better connect Australians to international opportunities.”

The rest of this article can be found at investordaily.com.au.