DG: Ok. So how does a boutique work for a client? Let’s look from a private client perspective – Say, for example, I haven’t heard of you, but I’m familiar with Private Banks, and I’m quite possibly even an unhappy client. But I see your name and perhaps I don’t recognise it – how does a relationship with you work?
UB: The same as directly with a private bank, only better!
• Independent advice
• Fee transparency
• Consolidation of assets
• We work for you
UB: Clients of HP Wealth Management still place their money with a private bank because we [HP Wealth Management] are not a bank, we are an investment manager or advisor. That choice of bank may simply be the one the client currently uses or it could be a new bank that they prefer or we recommend.
If the bank is the same then there will be a form at their bank that needs to be signed by the client nominating us as a Limited Power of Attorney holder.
If a new bank is required then we will manage the account opening for them.
We help with this process from start to finish and we become the interface for the client, it’s no longer the bank. Instructions to transfer, deposit, or trade any client funds are sent to the independent asset manager. All administration is done by the independent asset manager, all investment advice and execution is done by the independent asset manager.
The crucial element is that the account is in the client’s name, not ours. So one year later if the client doesn’t like us, they still have a bank account in their name and we can very simply be removed. It is also important to note that the Limited Power of Attorney does not allow us to move or withdraw assets.
A client may initially think that by using an Independent Asset Manager he only adds another layer of fees. However, that is by and large offset by the reduction of transaction and custody fees at the bank. Through us the client enjoys “wholesale” rates at the bank.