Wealth management is a financial service provided to customers who have signed an agreement with a firm to have their money or investments managed.
This is done on either a discretionary or advisory basis.
- A discretionary service is where the firm manages your portfolio of investments in line with instructions given by you. This means the firm will manage your portfolio and will make alterations without checking with you.
- An advisory service is where the firm will make recommendations based on your attitude to risk and circumstances, but you will need to agree to any changes before they are made to your portfolio.
In both cases, the firm has an ongoing responsibility to make sure that your investment portfolio remains suitable for you. This includes your attitude to risk and investment objectives.
This is different to transactional advice, where the firm is only responsible for the suitability of investments at the time that the advice is given.
If you are thinking about signing up for wealth management, or are already a customer, here are some things to consider to make sure you get the service you expect.
Make sure your records are up to date
To provide you with a suitable investment portfolio, your wealth manager will need current, accurate and detailed information on your financial situation and personal circumstances. This could include your:
- savings
- investments
- income
- financial commitments
If your wealth manager gets in touch to check whether the information they have is up-to-date, you should let them know if your circumstances, investment goals, or risk appetite have changed in any way.
Out-of-date information may have an impact on the service you receive. You may not be getting an investment portfolio that is right for your current needs and circumstances.
Understand the service you have signed up to
Wealth management firms offer a range of services to customers.
This could be a portfolio tailored to your individual needs, or a service where customers with similar risk appetites and investment objectives are grouped and managed together.
These are just two examples of the many services available. Contact your firm to confirm the details of the service you have signed up to.