As global markets rallied over the past five years, talent in the private banking industry had become a heavily fought over commodity. Rain makers, top bankers and entire teams were poached constantly by rival organizations who offered top dollar for the move.
However the unprecedented financial crisis has dramatically changed the talent landscape, with rookie bankers facing a harder time to move up the ladder, said a Merrill Lynch executive.
“Musical chairs are not taking place. People with limited experience, with fewer assets are not today being seen to move in the manner that they did in 2006, 2007,” said Rahul Malhotra, head of Asia-Pacific Advisory for Merrill Lynch.
Malhotra also said that the pace of growth in the wealth management industry outstripped the pace of growth in its talent pool.
What do you think?
7 comments so far
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- Posted by No more musical chairs in banking industry-Merrill execI wonder just how many ordinary citizens of the world can relate…even in a peripheral way…to the alternate universe of wealth management, i.e., the investment advisory discipline which has as its key objectives, providing the wealthy citizens of the world with tailored retail banking services, estate planning, legal resources, tax avoidance advice and investment management…with the goal of growing their long-term wealth.
OK Jack
- Posted by OK JackWell said Jack.
- Posted by Paula GriebAdvisory talent will continue to be fought over. Clients will require higher grade advice in the chilly new investment environment.
- Posted by john evansProduct pushers are out, and really skilled private bankers are in as the industry as a whole moves to the advisory fee-based model rather than commission generation.
John Evans
Private Banker International
Anyone with a ounce of knowledge knows that the Wealth Management/ Private Banking industry remains one of the greatest scams ever perpetrated upon wealthy individuals being convinced that their common sense is not as good as a commission driven, conflict of interest ‘other’ who is incentivised to accumulate assets and pay enough time making the hard decisions that every one of their clients believed they were paying fees for.
- Posted by Steven McDonaldAsk yourself this; “Were you forewarned about the credit crisis?”. If the answer is no, then you are in very dangerous hands…..but heh you know that already, right?!
October 15th: “I wonder just how many ordinary citizens of the world can relate…even in a peripheral way…to the alternate universe of wealth management, i.e., the investment advisory discipline which has as its key objectives, providing the wealthy citizens of the world with…tax avoidance advice…with the goal of growing their long-term wealth.”
Here is a newsworthy update for today, November 12th, Mr. & Mrs. Reader.
I guess I’ll have to add an additional item to the definition of wealth management. According to the NY Times article of today,i.e., UBS “Swiss Bank Executive Indicted in U.S. Inquiry”…but not because of “tax avoidance advice”, but rather because of “tax evasion advice” if you will.
NY Times: “The indictment significantly ramps up the pressure on UBS, which is under scrutiny both in the United States and in Europe over whether it has helped clients evade taxes by hiding money in offshore accounts. The bank is struggling to preserve its centuries-old tradition of Swiss banking secrecy amid the scrutiny. The indictment is the second in the case. In May…an American who was a senior private banker at UBS, was accused of helping a UBS client evade taxes through undeclared offshore accounts. He pleaded guilty in June and is cooperating with prosecutors in their investigation…is expected to be sentenced…in January. The offshore banking services in question brought in annual revenue of $200 million before UBS said it shut them down earlier this year…who turns 49 on Thursday, was the head of UBS’s “wealth management business”, which included the United States cross-border business now under scrutiny. He was promoted in July 2007 to chief executive of a UBS division that oversaw the United States cross-border business and worldwide private banking.”
OK Jack
P.S. Thanks, Paula!
- Posted by OK JackIt looks like UBS wealth management is running into problems with American tax avoidance.
OK Jack
- Posted by OK Jackoklahomajack.com