A Retrospective and A Prospectus for the Future

Abstract

All participants in the wealth management industry perceive, acknowledge, see, talk about, and openly discuss the dramatic transformation of the investment world. Yet few in the industry fully grasp the changes that have transformed the world of the family office and the private investor. Emboldened by a greater sense of responsibility and a confidence born of newfound opportunities for education and peer networking, private investors have shattered many of the myths that were widely held constructs in the industry in 1990—myths that informed business models and governed the formation of private client teams in trust departments, private banks, brokerages, and investment firms. To be sure, the industry has evolved along the way, but much work still needs to be done. To create and execute new standards of excellence, wealth managers must continue to move toward a new industry paradigm, one that embraces a more rigorous client discovery process, greater transparency on fees, and more candid client communications. Increasingly firms will recognize that they can’t (profitably!) be all things to all clients.