Higher net worth clients are less likely to care about where their money is managed from, but still care about face-to-face contact with their adviser, according to several in the sector.
Paul Derrien, divisional director at Canaccord Genuity Wealth Management, said British-based clients "like having access to their adviser in person and are minded to choose someone more local over someone who isn’t".
He said: "That said, for some clients there is a perception that the main decision making comes from a head office, which is often based in London, so these days there is much greater acceptance of advisers that are based there.”
But Derrien added that: “We manage investments for clients in various overseas jurisdictions (through our onshore and offshore offices) and for those clients, the connection to our firm or a specific advisor is usually the main reason for this. However, the majority of clients look for an investment company that is based in the country they live in, primarily for ease of access, but also to ensure/have comfort that the advice is appropriate to their tax circumstances.”
He adds that clients everywhere tend to want a brand name they can recognise, which tends to mean UK-based clients are more likely to want a UK-based company managing their money.
In contrast, Peter Clark is chief executive at Bentley Reid, a firm which focuses on ultra high net worth clients, and he said there had been a “noticeable” change in recent years.
He said clients still viewed face-to-face interaction as important, but that a digital “on demand” offering was also viewed as important to clients, as they could access portfolio valuations regularly.
But he said that while the digital offering was viewed as increasingly important, it is "complementary to, rather than a replacement for" the face-to-face interaction.
"We think the best way to build trust with a client is through that face to face interaction," Clarke added.
Minesh Patel, an adviser at EA Financial Solutions in London, said he sees a generational difference in terms of how clients wish to interact with him.
“Clients in their 40s or 50s, or younger, are very keen to connect using Zoom or Teams, they regard it as more efficient as it saves on travel time. But with older clients, we also have to think about their vulnerability, so we prefer to interact face to face with them, and they prefer it as well. I also don’t think clients mind where we are based. My office is in London, but I have clients in Birmingham and Bournemouth for example, and I make sure to go to see them. Some firms expect the client to come to their office, but I prefer to meet the client in their space."
Phil Smeaton, head of investments at Oberon Investments said: "Modern technology has increased the ease of communication, but face to face meetings remain important to build successful relationships. Our managers frequently travel to meet clients, but being located in the West End does also have advantages as clients can meet with their manager and then enjoy the entertainment which London has to offer.
“If clients move abroad this tends to complicate their affairs. The base currency of the portfolio may change, and the tax implications need to be incorporated into the investment strategy. However, the need for excellent service remains paramount. I’m sure our investment managers would be delighted to travel to Barbados to meet with clients, however, as the compliance team highlights, this is not always possible as it depends on the local rules.”
