Presentation by Sebastian Dovey, Managing Partner of Scorpio Partnership, global leaders in supplying financial research, world wealth reports and HNW insight to the wealth management industry.

1. Regaining the trust of customers with advice: independence, objectivity or quality
Presentation by Sebastian Dovey, Managing Partner
Scorpio Partnership

3. 4 years of digital
insight with
opinions from
over 12,000
multi-millionaires
in over 30
financial
markets.
These are the
world’s most
valuable
customers.
They want to be
responded to.

4. Rising costs
Falling revenues
Growing competitive influences
Flat net new money
Client opinion
Source: Scorpio Partnership

5. For HNWs
managing wealth today is
90% emotional and 10% mathematical
Source: Scorpio Partnership

6. To reach out to the customer today,
and in the future, there needs to be a
recalibration of the client centricity in
the business model
Source: Scorpio Partnership

7. Empathy
Trust
Independence
ObjectivityCommunication
Transparency
Source: Scorpio Partnership

8. What is the most important aspect of wealth management firms to demonstrate empathy to clients?
Source: Scorpio Partnership, SEI
Empathy

9. How important is independence to your firm? How important is independence to your client?
Source: Scorpio Partnership, SEI
Independence

10. 1%
20%
32%
4%
12%
15%
16%
No product pushing
Open architecture
Business controls
Transparent investment
process
Fee structures
Transparent reporting
Compensation strategies
Client-centric advisory process
How do you demonstrate independence to your
investors?
How can a wealth management firm best demonstrate
independence to you?
Industry View Investor View
Source: Scorpio Partnership, SEI
Independence

11. How would you demonstrate your objectivity in the context of your
professional services and wealth management offering?
Source: Scorpio Partnership, SEI
Intellectual skills
are at the
foundation of
the concept of
objectivity
Objectivity

12. • The marketing approach of most firms projects one message:
• “We focus on the client at any cost”
• Product dumping delivers another message:
• “We cannot afford to focus on clients at any cost”
• Blaming bad practices breaks the future industry message:
• “They cover their costs by not focusing on the client business
because they can then afford it. We are unique as we focus on clients
at all costs”
Objectivity
Source: Scorpio Partnership

13. 0% 10% 20% 30% 40% 50% 60% 70% 80%
Brand and reputation
Experience of professionals
Privacy
Credit Rating
Best price
Convenience
All-in-one product and service offering
Size of institution
Advice proposal
Branch network
Onshore services
Marketing materials
Offshore services
Referral from family
Referral from friends
Client response
Q: What are the biggest influencers when selecting a wealth manager?
Communication
Source: Scorpio Partnership

14. 42% of HNWIs surveyed
use Twitter
83% of HNWIs surveyed
use Facebook
24% of HNWIs surveyed
use LinkedIn
50% of HNWIs expect to use the
internet more for investment
choices in the future.
78% of HNWIs expect their need
for financial advice will either be
the same as today (significant) or
grow (significantly)
Communication
Source: Scorpio Partnership

15. Reporting Showing, explaining
and validating
investment decisions
Knowledge Explanation of the
investment process
Product Knowledge sharing
on all relevant
investment options
Fees Frank dialogue about
fee structures and no
hidden extras
Portfolio reporting Delivery of
transaction, tax and
fee information
Client education Fact sheets, scenario
analysis, seminars
Product Selection Simplifying product
offerings
Fee structures All-in-one fees
High priority Medium priority Low priority
Client expectations Industry focus
Source: Scorpio Partnership, SEI
Transparency

16. Confirming and
maintaining trust is
all about knowing
the client
Source: Scorpio Partnership, SEI
What are the priorities for the future for an improvement of trust?
Conclusion

17. Questions?

18. Sebastian Dovey, Managing Partner
14 Waterloo Place
London, SW1Y 4AR
T: +44 (0) 20 7811 0120
Twitter: @whatwealthneeds
www.scorpiopartnership.com
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