Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/10143
Title: Addressing challenges in the wealth management industry
Authors: Micallef, Joseph (2014)
Keywords: Investments -- Malta
Portfolio management -- Malta
Finance, Personal -- Malta
Issue Date: 2014
Abstract: Purpose - The purpose of this dissertation is to understand the main challenges faced by a wealth manager. The four challenges discussed relate to: i. Client’s risk profile ii. Pricing, Product and Distribution iii. Business Model and Competition iv. Regulation as the external environment challenge. Methodology - The use of semi structured interviews provided flexibility in answers by the key market players in the wealth management industry. In addition to this, attending a conference on wealth management organised by Finance Malta offered an even more comprehensive insight on current issues and future prospects that the Maltese industry is facing. Benchmarking the Maltese wealth management industry with the Swiss industry provides a better understanding of the current situation. Findings - With regards to the local industry, the majority of the Maltese investors still focus on fixed income investments and an extent do not well grasp the risk concept. Regulation is an on-going challenge for the wealth manager locally. MiFID II being implemented in 2014 and requires financial advisors to undertake additional compliance requirements. The pricing, product and distribution challenge impacts less the local wealth management organisations. Consolidation issue is a constant challenge faced by non-dominant ‘key players’ within the industry. Research Limitations - The main research limitation was the confidentiality issue with regards to certain wealth management areas, due to the nature of the industry Practical implications - The main emphasis is to build a strong relationship with the client based on trust and communication. Effectively, this would lessen the impact of the other challenges described above and would lead to an efficient wealth management industry. Originality and value - The challenges have become more pronounced since the 2008 financial crisis which shattered the industry. In the meantime, the population of high net worth individuals together with the value of wealth has increased significantly and reached high in 2013. So there should be a consensus between the ‘key players’ within the industry to service better the client and exploit the upcoming opportunities.
Description: B.COM.(HONS)BANK.&FIN.
URI: https://www.um.edu.mt/library/oar//handle/123456789/10143
Appears in Collections:Dissertations - FacEma - 2013
Dissertations - FacEMABF - 2014

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