Partnerships between banks and IFAs – Best of both worlds Olivier Collombin / Julien Froidevaux LODH – Independent Assets Managers Prague – April 29, 2008
Dec 15, 2015
Partnerships between banks and IFAs –
Best of both worlds
Olivier Collombin / Julien FroidevauxLODH – Independent Assets ManagersPrague – April 29, 2008
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 2
Jean de la Fontaine (1621 – 1695)
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 3
“The Oak and the Reed”
• “The Oak and the Reed”
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 4
“The Lion and the Rat “
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 5
IFA Swot Analysis
Strengths Weaknesses
Opportunities Threats
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 6
Strengths
• Independence• Flexibility• Proximity• Profitability
Strengths
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 7
Weaknesses
• Dependence to large clients• Lack of investment capacitiesWeaknesses
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 8
Opportunities
• Banking consolidation• VHNWI• New career for senior privates bankers
Opportunities
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 9
Threats
• Changing business model• Increasing legal constraint• Non-prepared successions
Threats
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 10
The perfect banking offer
• An excellent brand name• A sophisticated and user-friendly IT tool• An international network• A reliable administration• A loyal and supportive management• A dedicated desk• A partner who thinks beyond your immediate needs
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 11
Financial markets … have we seen the worst ???
• Volumes heavily down• Lack of liquidity in underlying investments• Major players badly hit • Barriers reached - structured products have lost part of their initial appeal • Alpha – which alpha - who cares when performances are negative ?!?• Who wants to provide leverage ? Which industry is next after financials ? Is
your bank the next one to go ?
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 12
Problems … and hopes
Still problems …• Real estate trouble and over
evaluation have not disappeared • Industries results publication will
likely disappoint investors • Default rate will keep on increasing,
making additional write-down and recapitalization a reality
=> Shareholders will suffer further …
But some hopes : • Markets moving sideways • Stabilization of financials with
successful recapitalization • Increased liquidity measures and
tools provided by authorities worldwide
• Successful rescue of Bear Stearns, no bail-out with free lunch
SO HOW DO WE GET THIS TRUST BACK ??? FIVE SOLUTIONS PROPOSED
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 13
Long-term approach- the status of Private Bankers
• The status of a “Private Banker” is defined in the Swiss Banking Act• Under Swiss law, bank Partners are jointly and severally liable for the liabilities
of the Bank to the full extent of their assets without limitation• Private bankers have to comply with all Swiss regulatory and supervisory
requirements, but they are not required to make their balance sheet and profit and loss account public
• There are 14 Private Bankers left in Switzerland, under the supervision of SBC
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 14
Be close to your clients and prospects
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 15
State-of-the-art IT system should :
• Be truly user friendly • Allow to be self-sufficient at workplace and when traveling• Provide comprehensive internal and external financial research on all
underlying investments • Include electronic storage with immediate retrieval of data• Allow online services to end-users • View, organize, analyze, and actively manage group of portfolios• Display and readily print report for your client in several languages • Allow all transaction orders through one single application
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 16
Key criteria for successful partnership
• Investment professionals in several countries and ability to open accounts in several jurisdictions
• No mix with institutional or other private clients • Majority of team should be client facing !• Presence of specialists within the team for business development, advisory,
investments, IT, compliance, risk management, special projects, etc. • Access to all bank resources through one contact person• No opportunistic approach – make sure your bank has been active in the
field for many years and that IFAs are considered strategic partners
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 17
Full access to investment tools and services
• Access to comprehensive financial research, including external funds • Direct advisory services • Potential direct access to trading desk• Opportunity to create private label to centralize asset management • Common investment proposal • Delegation of asset management • Common client visits
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IFA Department · Olivier Collombin - Julien Froidevaux · 29.04.2008 · 18
Conclusions
• IFAs local and international development to continue, if not to accelerate• Banks to further partner with IFAs - not compete – in true spirit of
partnership• New markets and economies will increasingly see emergence of IFAs• Open architecture not only for investments but also for global services could
provide larger playground for IFAs as true alternative to banks• Independence not a vain word …
“Tout ce qui augmente la liberté augmente la responsabilité”
Victor Hugo (1802-1885)