As ide from providing professional services in investment advice, wealth management also comprises of services in financial advice, banking, accounting and tax services, retirement planning and legal or estate planning for high-net-worth clients.
Because this area of work involves a holistic approach to all parts of an individual’s financial life, high-net-worth persons don’t require more than a single wealth manager to coordinate all financial services vital to managing their assets and meeting current and future financial needs.
Career overview
Not all wealth managers work in banks – positions can be commonly found in SMEs, and some may even be self-employed. However, in banks, professionals typically only recommend financial products provided by the bank they work for, instead of products available on the whole market.
Graduates generally start off with a role in the back office as an administrator or paraplanner, either supporting the company’s business or conducting research on the best products on the market to recommend to clients. Gradually, hires will rise up the ranks and progress into a wealth management role. Alternatively, hopefuls may enrol into a graduate scheme.
While it’s possible for individuals to switch from professions in accountancy, law and other financial services to wealth management, it’s also worth noting that recognised professional qualifications – much like the CFA designation – may be needed to boost progression and move into a chosen area of specialty, such as client relationship management or investment. Studies will have to be balanced alongside work.
Required skills
Although recruiters accept applications from all disciplines, numerate degrees in economics, accounting and finance will put candidates at an advantage. Business and law degrees, as well as courses in risk management, investment and taxation will also catch recruiters’ eyes. Solid mathematical abilities are also a must.
Excellent interpersonal and communication skills are key as wealth managers need to be able to explain complicated matters in a simple and clear manner to clients. Analytical skills are also essential in order to give clients suitable advice in response to problems and situations.
Pros & cons
Although wealth managers relish helping clients make sound decisions to ensure success in their financial well- being, they can sometimes experience considerably high levels of stress, especially at the start of their careers, due to a number of factors.
For example, the financial services industry is highly dependent on domestic and global markets – which can be volatile at times – and clients can have emotional reactions to market changes.
