Private wealth management jobs are geared towards those who wish to deal with high net-worth clients by offering professional advice and services that help guide their wealth as efficiently as possible. Wealth management encompasses a wide range of fields, such as financial planning, investment management, and financial advice on pensions, trusts, inheritances, and tax bands.
Often, wealth management services are offered by high street banks in the aim of attracting high-value customers. They normally do this by providing specialist accounts and services that do not require much thought on behalf of the customer; they are mostly an all-in-one solution that satisfies the majority of their needs, with advisors on hand in the event that something else is needed. However, private banking meets a different niche altogether. This type of banking is tailored directly to the client and offers a one-to-one service. This might include investing money directly on a client's behalf, rather than acting on an available pool of funds from several accounts.
Private wealth management jobs: further details.
Private wealth managers working in a private setting will offer two types of services: advisory and discretionary. Advisory services will provide advice and suggested actions to a particular client and allow them the opportunity to give the final say on their advice. Discretionary removes this step and acts completely on the client's behalf after some form of instruction is provided (usually a written mission statement outlining how they would like their assets invested).
Who uses private banks?
Private banking has historically been used by the extremely wealthy and usually applies to those with assets that exceed £10M. Ultra high-value clients, such as those with £30M or more, is still a very significant industry in the United Kingdom and continues to attract wealthier clients to this very day. However, many private banks are now branching out to clients with funds as little as £500,000.
How will I make money?
Private wealth managers can generate an income by charging a monthly fee for their service, selling their personal financial products to clients (that usually generate a passive income based on their investments), or by charging a fee based on the value of their assets and taking a percentage of profits generated from the assets being managed.
What jobs are available in private wealth management?
Private wealth managers have a myriad of opportunities when it comes to finding positions in private banking. Traditionally, investment and relationship management are the most sought after positions within private banking and they indeed make up the majority of what is on offer. However, investment management is also a popular role for those who wish to get into wealth management.
Investment positions in private banking.
Those dealing intimately with investments may offer advice to clients that help them make wise decisions with their funds. Similarly, they may operate on a discretionary agreement and take control of all the investment decisions being made on their client's behalf. They will also liaise with other members of staff who can provide particular advice on specific assets before making any formal arrangements.
Relationship management positions in private banking.
Those who take roles in relationship management will typically be dealing with the sales and marketing side of their service. Relationship managers maintain exceptional relationships with their wealthy clients and sell the bank's particular services. Relationship managers are usually the first point of contact between the client and the bank and will work to establish what the client needs, then deliver him or her to an investment specialist who can further act on their requests and come up with a more detailed solution.
Not all roles in private wealth management are customer facing. Many can be regarded as supporting roles. These roles could include compliance managers, who ensure that all legal and regulatory rules are followed when investing funds, operations managers, human resources, or wealth management accountants.