WEALTH MANAGEMENT

Syllabus Overview

Wealth Management is an option module aimed at participants who wish to build upon their previous knowledge of financial markets and products by analysing and evaluating the core financial service of wealth management. In particular, participants will analyse the services provided under the weath management banner and evaluate the process of advising High Net Worth Individuals. The significant resein the number of such individuals has been a major feature of the financial services industry over the last decade.

The module examins the core features of a typical wealth management division including investment services, brokerage and financial planning as well as international and private banking. Students will examine the various categories of client, identify and assess their needs, develop solutions and justify advice. Such advice will range from core financial planning (lifecover / pension requirements), through making investment recommendations from a range of financial products such as an equity / bondy / based portfolio, to hedge funds / private equity holdings. The module also provides relevant context by comparing alternative regulatory regimes an adviser could be working within, in particular this will focus on the details of what is required to become, and remain. In addition participants will evaluate contemporary issues that impact upon the weath management service.

Through the assessment, participants will have the opportunity to demonstrate their technical knowledge of the broad range of issues that High Net Work Individuals will face and for them to make suitable recommendations to address such issues. The module will not only broaden participants' knowledge and understanding of the financial services industry buy also further dvelop their intellectual and practical skills via the analysis and evaluation of the wealth management process.

Syllabus

1. Regulatory Environment

Analyse the features of key financial regulatory regimes operating around the world. Participants will be able to review and evaluate the regulation and legislation pertinent to the respective countries' financial market. To include:

  ● Evaluation of financial regulatory environment including the Financial Services Marketing Act, the Principles of Business, Codes of Practice and Retails Distribution Review.

  ● Examination of the requirements for being an authorised financial adviser and the various forms of financial advice.

  ● Assessment of the implications of Asia regulation and legislation.

  ● Ethical and professional standards.
 

 

2. Client Identification and Analysis

Analyse the market for wealth management products. Participants will examine the various categories of clients, their needs and rpirities. To include:

  ● Analysis of the segmentation of the market for wealth management products, both private and institutional. (e.g. entrepreneurs /professionals / landowners / pension funds, etc)

  ● Examination and assessment of the requirements of expatriates / inpatriates, philantrhopy, family businesses and assessment of the importance of the protection of wealth through succession planning, tax planning and use of trusts.

Cultural and ethical considerations.

 

3. Needs Analysis and Relationship Management

Consider a client's particular needs and assess the client's options, develop solutions and justify recommendations. Participants will examine how a Wealth Manager will manage a portfolio of clients profitably. To include:

  ● Examination and profilling of the clients, assessment of their needs, attitude to risk including capacity for loss and presentation of sustable recommendations.

  ● Evaluation of the techniques required to manage a portfolio of clients profitably within different welath management institutions (family offices / private banks / retails banks, etc).

Examination of the techniques of client acquisition and retention.

4. Wealth Management: products and services

The various features and services provided by a typical wealth management division including: investment services, brokerage, international and private banking. Investigating options available to High Net Worth Clients by analysing their functions, characteristics and appropriate usage. To include:

  ● Analysis of the product components of investment services, brokerage, international and private banking.

  ● Analysis of the different types of investment services offered - (execution / discretionary / advisory) and examination of the different types of investments available.

  ● Evaluation of the characteristics and purposes of alternative investment products, and vehicles, with reference to international markets and empirical evidence.

Examine the rise in demand for ethical products and the ethical debate.

5. Portfolio and Risk Management: investment strategies, risk analysis and portfolio theory

Analyse the techniques involved in establising client’s investment profile and attitude to risk to aid the development of a bespoke recommended portfolio.

  ● Establishing a client’s investment profile and preferences – (i.e. reference currency / attitude to risk / investment objectives / expected returns / time horizon).

  ● Assess client personal circumstances, knowledge, experience and age / life cycle stage.

  ● Analyse investment strategies (e.g. growth / income / combined / fundamental / technical / leverage /shorting) with reference to empirical evidence.

  ● Assess the use of Modern Portfolio Theory when constructing a portfolio (e.g. Capital Asset Pricing Model, the Efficient Hypothesis).

  ● Design, monitor and critically assess a bespoke portfolio with reference to market indices, benchmarking and empirical evidence.

  ● Analyse the hedge fund market and the various strategies that fund managers use to enhance investment returns and reducing a portfolio’s volatility (i.e. the use of financial futures).

6. Tax and Taxation Planning

Analysis of tax issus relevant to high net work clients in the creation of a balanced portfolio. This include:

  ● Analysis of the various types of tax applicable with respective country. (Income / Capital Gains / Inheritance).

  ● Examination of the practical and ethical issues relating to the delivering of tax efficient advice covering tax evasion and tax avoidance.