9 steps to becoming a successful wealth manager

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  2. 2. Wealth Management is a career with high earning potential, comfortable hours (for financial services), great rewards and a high degree of prestige.With such high appeal, securing a role within Wealth Management and, better still, building a successful career is highly competitive. Due to the nature of the role, it has historically taken longer to progress up the career ladder than in other verticals within financial services.The average age of an established Wealth Manager is 35 years old. This guide will give you essential tips on how to secure a role as a Wealth Manager, grow a book of clients, and accelerate your Wealth Management Career. A CAREER IN WEALTH MANAGEMENT
  3. 3. To legally provide investment advice to clients you need the relevant qualifications. These qualifications vary by local jurisdiction; however in the UK it is imperative you are Level 4 RDR Qualified. Anything below this and you will find your options within Wealth management extremely limited. Luckily there are various routes by which this can be achieved. Two of the most commonly followed routes are below: Completing certain modules within Level 4 IAD grants you the Level 4 RDR Qualification OR Units 1 & 2 of the CFA I + IMC Level 4 is equivalent to a Level 4 RDR Qualification Please note that the required qualifications vary globally. If you require advice on which qualifications you require for a Wealth Management role in your region, contact us. 1. GET QUALIFIED
  4. 4. 2. DEVELOP RELEVANT EXPERIENCE Wealth Management is a specialised banking service provided to High NetWorth (HNW) and Ultra High Net Worth (UHNW) individuals to manage their income, investments and assets. It shouldthereforecomeasnosurprisethatrelevant experience of working with such individuals is essential to secure a Wealth Manager role. Such experience can come in a variety of forms; however it needs to be relevant. Some of the best ways to get first-hand exposure of working with HNW and UHNW clients include working as an Assistant Wealth Manager or a Client Services Officer. Candidates forWealth Manager positions need to know how to deal with the sophisticated needs of their clients. Employers want to see evidence of a high level of professionalism, an ability to simply explain complex financial products, and confidence in entertaining (schmmosing) clients.
  5. 5. The more specialised you are, the more valuable your skill-set. Build your knowledge and network within one specialist market vertical rather than generalising. There are two ways to achieve this:either chose a particular nationality to provide your services to,such as LatAm (Latin American), Russian, NRI (Non-residential Indian), UK Res, or chose a single occupation of HNW individual to specialise within. You could become a specialist advisor for Lawyers,Accountants or Entrepreneurs for example. Once you have chosen your niche, build your network and develop a robust understanding of the nuances within the segment. Make a conscious effort to focus all of your energy towards your niche, attend networking events,keep informed with industry news and ask questions to get informed. Build relationships with all relevant contacts that you are exposed to as, to some degree, Wealth Management is all about who you know - you can never have too many relationships. Finally, dont forget to look to family and friends in your quest to grow your network, as developing a relationship with a warm connection is always easier than building a relationship from scratch. 3. BUILD YOUR NICHE
  6. 6. 4. KNOW YOUR INVESTMENT & BANKING PRODUCTS Wealth Management firms provide a full suite of customised banking solutions to private clients, including portfolio management, estate and trust planning, wealth structuring and investment advice. To provide such services its imperative that you know your products inside out. Luckily the basic banking products only typically differ marginally from one institute to another, so having a strong understanding of the basics and being able to adapt your knowledge accordingly can take you a long way. If you are already working within aWealth Management Firm or Private Bank, speak with the investment teams there in order to gain an in depth understanding of the platform being used. If you are not already working within a financial institution, completing the relevant qualifications for RDR (as discussed above) will provide a solid foundation of knowledge.
  7. 7. The financial markets have seen a high degree of turbulence over the last few years. Its important that you understand the trends and the various key driving forces that can and will affect financial markets in years to come. To secure a role in the UK, you also need to have a thorough understanding of how the changes within UK tax laws have affected UK banking, as well as an understanding of how changes within UK government policies affect your niche of clients. Likewise to secure a role outside of the UK you will need to think through how laws and governmentpolicieswithinyourlocaljurisdiction may affect your clients. 5. UNDERSTAND FINANCIAL MARKET TRENDS
  8. 8. 6. FIND A FIRM There are several different kinds of Wealth Management institution. You need to understand the key differences between the different kinds of institution before you start applying for roles. The key differences between Wealth Management solutions are outlined below: Private Banks generally tend to have the largest platforms in the market, enabling them to offer the widest range of products as well as greater back office support.The majority of candidates aim to start their careers at a Private Banks as they provide a wider range of experience for people new to the industry. Discretionary Wealth Managers specialise in providing an investment platform only they do not provide banking products. Multi-Family Offices generally provide bespoke high-end wealth solutions to Ultra High NetWorth clients.Usually focussing on just a select few clients within a particular niche vertical,Wealth Managers at such institutions tend to be senior and well experienced.
  9. 9. There are two kinds of entry level position: 1. Smaller Private Banks and Discretionary Wealth Managers tend to hire entry level candidates as Assistant / Junior Private Bankers. In this role you would sit alongside a Senior Private Banker, shadowing them and learning first-hand how to grow a successful portfolio. As you develop your expertise of the market you would gradually take ownership of clients until you are ready to start building and expanding your own book. 2. Some larger Private Banks, such as Barclays, HSBC, Lloyds and Citi, employ entry level candidates immediately as Private Bankers, then hand over referral networks to candidates enabling them to start building their own book from day one.Although perhaps less one-on- one training, this position enables you to hit the ground running and start building the book that will be the basis for your future career. Understand the difference between these two approaches to entry level positions, and choose a role that best fits your personality to increase your chances of future career progression. 7. APPLY FOR THE RIGHT KIND OF ROLES
  10. 10. 8. BUILD A NETWORK WITHIN YOUR FIRM Once youve landed your Wealth Manager role, its always advisable to build strong internal networks, especially when working at a large bank that has Investment, Commercial or Retail Banking divisions. Seek connections in other parts of the business and find opportunities to cross-sell business to them. When the opportunity presents itself, you are likely to be the first person your colleagues call on when their clients seek referrals for a Wealth Manager to manage their personal assets. This is a great way to grow your book and develop your market reputation at the same time.
  11. 11. Finally, all that remains to do is grow your Assets Under Management (AUM). Your AUM is your ticket to building a successful Wealth Management career. Building and maintaining a strong book and consistent revenue year on year will help you to ensure you maintain a good job and progress in your career. Furthermore the total fees that you charge are linked to your AUM, and therefore the higher your AUM, the greater your salary. To grow AUM, you will need to strike a good balance of serving your existing clients whilst also bringing new clients on board every year. Its a balancing act, but the better you are at achieving this, the more successful you will be. 9. GROW YOUR AUM
  12. 12. xxx START YOUR WEALTH MANAGEMENT CAREER TODAY Carlton Senior Appointments, part of the Phaidon International group, is a market leading recruitment agency focusing on the Wealth Management,Trusts and Corporate Services sectors. Working across Europe, the US, Asia and the Middle East, we provide specialist recruitment solutions. If youre looking to land your first Wealth Manager role, or progress to the next level within your Wealth Management career, we can help you. CONTACT US +44 20 3758 8850 enquiries@carltonseniorappointments.com WERE HIRING Submit your CV