What the private banks don’t tell their clients…
Tuesday, 22 July 2008
According to Citywire HSBC Private Bank is closing its stockbroking business, telling clients to leave by 1 October for one of a number of wealth management firms.
The bank is understood to be shedding clients who use it on an advisory basis who have assets of less than £1 million invested all or partly in direct equities.
HSBC refused to confirm the move to Citywire or the rationale behind it, but in a letter to investors it said: ‘Following a detailed review of our business and strategy, we have decided that we will no longer offer a stockbroking service within the private bank. ‘I know that you have been a client of ours for a number of years, and I can assure you we have not taken this decision lightly. In the long run, however, I believe this move will be in the best interests of both you and the bank.’
All sounds rosy. The bank is doing it in your best interests! Actually that’s great news if you are one of the lucky ones they are saying goodbye to!
But here comes the final statement “Sources close to the situation have said that the move is intended to allow the bank to focus on its higher-margin private banking activities with investments handled through its in-house collectives service.”
The point is that the private banks are looking to sell high margin products to high net worth investors. With the credit crunch still permeating through the system, I have already said investors can’t sit on the laurels with these banks. It is important to review your portfolio. Ask for an alterative view; build your knowledge to protect yourself and hopefully you will end up with a successful investment experience.
If you do not know what questions you should be asking the banks, call us, and we can help.
Categories: Asset Class Management
posted by Murray Round Wealth Management @ 14:39,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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