Client Relationships and Family Dynamics: Competencies and Services Necessary for Truly Integrated Wealth Management

Abstract

Financial firms and family offices are increasingly affected by and involved with the personal and relationship issues of client family. This reality challenges a firm to help families in a way that is very different from providing financial services. For most relationship managers (RMs) who are the interface between the client and the firm, this is a new area in which they are neither trained nor comfortable. This article outlines the ways that family-dynamics issues impact multigenerational family decisions and how the RM becomes involved in these decisions. The authors present a typography of the competencies needed by RMs to serve families in this way. Next, they explore how the RM can develop these client relationship skills and define the key elements needed so that an RM is competent in handling these issues as they arise. Finally, the authors look at the challenges that arise within the financial firms and family offices as they support their client families with these services. We suggest some ways that RMs and their firms can effectively combine family-dynamics services with their financial advising.