How advisers can play a trusted role in families’ ‘great wealth transfer’

WHAT does it take to become a “trusted” wealth adviser? This is potentially a multibillion-dollar question for financial institutions and wealth advisory firms in Singapore. Virtually all firms in the wealth management ecosystem want to participate in the “great wealth transfer” currently underway, where globally more than US$83 trillion is being handed over to the younger generations.

Having Singapore as a base for operations already puts wealth managers ahead, thanks to a strong governance system, rule of law and a well-regulated financial industry. But that backdrop alone is insufficient.

UBS’ Global Next Generation Report gives an inkling of what is needed to compete. The report draws from a survey of scions from below 21 to over 45 years of age – 49 per cent in Europe, 19 per cent in the US and 11 per cent in the Asia-Pacific. Of wealth managers’ desired attributes, experience and expertise were cited by the largest proportion of respondents (79 per cent), followed by a close relationship with the family.