Branching out - Expanding Across the Full Spectrum of Wealth

Financial Advisory

22 June 2023

Advisory DistributorsAssetConsumer DutyFinancial AdvisorygenerationalInvestmentsWealth

Expert: Vincent Tiseo, Global Head, Business Strategy, Goldman Sachs Asset Management Facilitator: Roderic Rennison, Catalyst Partners


  1. Ultra-high net wealth and high net wealth investors comprise 1.5% of the population, yet they have 45.4% of wealth
  2. Global wealth has expanded, and a significant amount is in motion in the coming years
  3. As a result, there exists a significant multi-generational opportunity for quality financial planning firms
  4. A key success factor will be understanding what clients do, and do not, value


Quantitative aspects such as asset allocation and manager selection comprise circa 30% of what clients value, whilst qualitative aspects such as succession planning and family relationship management comprise circa 70%.

In Goldman Sach’s view, there are three phases to execute to move upstream: Attract, Serve, and Retain.

The ability to move upstream is correlated with exploring and exposing gaps in knowledge, offering, and approach.

Brand is key, and adjustments need to be made to the areas of the products and solutions, technology, and the focus of client conversations.                                                            

What is best done in-house vs. outsourced, needs to be carefully considered in order achieve the best outcomes for both clients and the business.

Whilst areas such as investment management, arranging insurances, retirement planning, and financial planning may be done in-house, areas such as legal, and tax will usually be outsourced.

There is a changing pricing landscape, and it is set to change further over the coming years, in part due to Consumer Duty.

Whereas ad valorum fees have predominated in recent years, other pricing models such as financial plan fees, hourly fees, along with retainer and subscription fees are all being more widely used.

Over 20% of HNW focused firms now split fees between: financial planning, investment consulting, and family office serviced.

Key takeaways:

  • Consumer Duty will bring focus on demonstrating value to clients for the services provided
  • Better adviser training will enable them to negotiate fees that are more aligned to the services required by clients
  • We need to constantly look at the ways in which the use of technology can enhance the client experience and improve profitability
  • Improved data management will be able to identify:
  • Main sources of revenue
  • The relative profitability from different service areas
  • Planning for the changes needed