Marketforce and IEA 10th - The Future of Private Banking Conference, October 2012

Finance brief - January 2013

• A Guide to Yacht Finance
• A Guide to Recovering Money from a Russian Personal Guarantor 
• Marketforce and IEA 10th "The Future of Private Banking" Conference, October 2012
• General liens and financial collateral
• All monies guarantees: do they do what it says on the tin? 
• Suing for book debts after assignment: who can bring proceedings?
• Potential lender liability when taking security over an asset

The key theme emerging from, and running through, many of the discussions at the Marketforce and IEA 10^th "The Future of Private Banking" conference held in October 2012 is change.  In particular, that there are many challenges facing the private banking industry which are key drivers for change.  These include: (i) The changing demographics of clients at both ends of the spectrum, with increased longevity but also increased wealth creation at a younger age and the very different needs of these clients.  (ii) Markets are more complex with ever increasing global relationships and pressure from low returns.  (iii) There is also fierce competition with new entrants and established institutions seeking to build market share.  (iv) Finally, increased and changing regulation, on a domestic level (including RDR and the handover of reins to the FCA) and globally, bringing expectations of better professionalism, transparency and stricter compliance.

Whilst there was a harmonious voice in identifying and recognising these catalysts for change, it was also clear that there is not a unified response to the challenges.  There were strong differences of views as to whether a move to advisory services (with the stated aim of moving away from product-led relationships and of offering clients greater choice and control) is an appropriate response in the best interests of clients, or whether this is best met through discretionary only services. Changes to remuneration packages for private bankers were discussed; as were the steps taken by institutions to differentiate themselves through geography, focus on different categories of wealthy individuals and / or different approaches to segmentation.

However, one key response identified was the need to rebuild trust between private bankers and their customers.