Protectorship - Not convinced you are receiving professional, objective and impartial advice?

Fiduciary Wealth Team

Over the last four years investors have had to endure a rollercoaster ride as markets have lurched from one crisis to another. From global financial meltdown in 2007 to bailouts for Portugal and Greece followed by sovereign debt downgrades by credit agencies which have resulted in the USA losing its coveted AAA rating. There has been and still is plenty to worry about.

Investors concerned about maintaining and preserving wealth and the obligations and responsibilities that they hold on behalf of others, are now quite rightly turning their attention to the management of either family or personal wealth through a trust, foundation or corporate structure. The thing uppermost in people’s minds is – investment performance. Clients who have suffered capital losses have plenty to think about....

How has our investment performed over the period?

Do we have the right asset allocation strategy in place?

How accessible is our adviser and how accountable are they for the decisions they take?

Has our investment portfolio been managed pro-actively rather than passively during these difficult periods and have the right calls been made at the right times?

The answers to these questions will determine whether or not you should retain the services of your current investment manager. One should also consider connected issues including whether the fiduciary offering trustee and foundation council services is directly or indirectly through a subsidiary or affiliated firm providing the investment advice.

Assuming it is not a connected party you should investigate whether there are commercial reasons for trustees recommending a particular private bank or asset manager. You should then ask yourself whether the introduction constituted best advice or was due to cross referral arrangements. Have you considered the possibility that your fiduciary provider is conflicted and therefore their ability to provide impartial and best advice is being compromised?

Questions like this are being raised more and more frequently. Clients no longer expect one firm to handle all aspects of their affairs. They recognise there is a need for checks and balances and for a need to engage a firm of specialists to oversee the investment mandate to ensure the beneficiaries’ interests are protected. The value of independence has never been so important or widely sought after. The ability of an investment manager to be able to make decisions without the influence of any third party, institution or fund provider is paramount when providing advice to trustees and beneficiaries.

If you require a second pair of eyes to ensure family or personal wealth is being managed in accordance with the objectives of the trust and/or foundation give us a call and find out more about our risk management solutions. Alternatively if your concerns are more deep rooted for an independent option which avoids potential conflicts why not consider our protectorship services.

Act now! To find out more about how we can assist you please call us on Tel: 956 796 911 or email