There is no standard definition for wealth management that will be generally accepted, though according to Maude “a basic definition for wealth management would be financial services provided to wealthy clients, mainly individuals and their families” (Maude, 2006).
“a type of financial service that combines personal investments, tax planning strategies, estate planning and legal counsel. It is designed to provide a broad array of services within the confines of one office”
Detailing the key elements that differentiate their services from other forms of retail financial institutions, wealth managers draw attention to the exclusiveness of their client relationships, which are extensive in that they cover all aspects of a client’s financial life, and with great respect to the adviser’s devoted knowledge of a client’s priorities and values. Likewise, this breadth and depth of the manager-client relationship allows the wealth manager to form and apply specially designed solutions that meet all key elements of a client’s financial welfare. The following three criteria distinguish a firm as a wealth manager:
- The relationship between wealth managers and their clients, in regard to both terms of breadth (such as “holistic”, “comprehensive”, and “all-inclusive”) and depth (“intimate” and “individualised”).
Since wealth management has scored the fastest growing in late 1990, all of the financial services industry sector and even through the recession after that wealth management still attracts investors. In term of the population growth the number of millionaires till 2006 the number increased which is more than 7% a year referring to the devolved in the economy in Europe and North America.
“Given that financial markets and economic growth in 2008 has been far worse so far than 2007, I expect flat growth or a contraction in the millionaire population in 2008.