 Most of today’s systems were developed with the objective of delivering a much simpler asset management solution. As a result the solutions delivered are below the standard needed to manage financial needs and assets of the private investor.
Where they succeed in limiting the complexity of the issues addressed at the point of sale, they fail in their ability to manage the complexity left untouched. There are two problems thrown up by simple systems. The first and the more important is that they separate out the asset management responsibility and accountability from the management of the client’s portfolio. The second is that they ignore complex financial relationships that still need to be managed. This is either a cost to the client in the form of additional financial advice or a cost in the form of the risks the investor will be exposed to if these issues are not addressed.
The systems used and the expertise of those using them has a major impact on the quality of the wealth management solution. Quite often the systems used are looking to solve the wealth manager’s problems as opposed to the investor’s problems.
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