SUPPORTING A FAMILY WEALTH MANAGEMENT BUSINESS MODEL.

Estplan  has investigated  emerging trends in Private Wealth Management and supports the family wealth management model  based on client demand  and as a means of substantiating the service offer and justifying fees.

We have witnessed a polarization of financial advisers in the marketplace, particularly recently. This is largely because of structural changes that are impacting all practices across functional silos- financial planners, accountants and lawyers.

These structural changes have been partially instigated by legislative change; however the majority of the change has occurred due to client demographics in Australia. The baby boomers have resulted in an ageing client base for most advisers and next 3 decades will see the greatest transfer of intergenerational wealth in Australia.

Advisers have the option of adopting either a transactional approach with a strong product bias or a relational approach with a strong service focus.

The traditional transactional approach will rely on economies of scale and cater to the mass market – client segments include Cs & Ds and some bottom end B’s. The focus continues to be on volume and number of clients.

Estplan supports a relational Family Wealth Management model - part of the evolving Private Wealth Management model worldwide. This is a service based approach that enables financial advisers to deliver a comprehensive solution that satisfies the client need. It is more specifically aimed at the top 20 % that control the 70 % of wealth.

The advantage of this model is that

• It alleviates the intergenerational fund redemption threat.
• It uses change as an opportunity to enhance competitive advantage and adopt a new service paradigm.
• It substantiates the service offer.
• It justifies fees based on value offered to the client.
• Adds to prospecting opportunities:  family, business partners and their families, adviser networks.
• Builds sustainable practise model between generations.
• Generates new fee income and increases capital value.

Estplan has developed a series of articles to help you understand the impact of family wealth management in your practice.

We invite your comment on and experiences on changes you have implemented in your practise:  email us at  This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Estplan mentors can show you how to rise to the challenge. Visit us at www.estplan.com.au/services-and-products/services/business-consulting-and-mentoring.html  or call 1300 ESTPLAN for an information pack.