∙Wealth families have complex multi-jurisdictional needs ∙Integrated approachmeans thesedemands can be met ∙Wealthmanager must knowwhich part of bank to turn to ∙Covid-19 has led to more collaboration between teams JOHNYOUNGER HEADOFCLIENT&BUSINESSDEVELOPMENT,RBCWEALTHMANAGEMENT

risk/return, tax residency, cross- border wealth transfer and estate planning and business needs that operate across international borders. Awealth manager aligned to an investment bank should be able to take a coordinated approach to their personal, family and institutional needs across the globe. For example, an individual


any ultra high net worth (UHNW) clients and their families tend to have sophisticated,

multi-jurisdictional wealth and business structureswhich often means their needs cannot fully be met by traditional wealth management services due to the breadth, complexity and size of these requirements. In servicing these families, it is

imperative to align their personal needs with their institutional-like needs. For such clients, we believe it is advantageous for a wealth manager to have a global investment bank within its structure, rather than as a third party. Aclientmay have a core holding in

a business and personal exposure to a currencywhichwould benefit from a hedging programmeto mitigate risk. Most independent wealth managerswould not have the ability

to execute such a programmedue to size and complexity constraints, but a wealth manager aligned to an investment bankwould be able to offer an in-house hedging programmesuited to their personal needs.

Similarly, an individualwho owns

a significant position in a single stock (perhaps through ownership of a private company in an IPO) may prefer to take leverage fromthe position rather than sell. Should the position be in excess of £50m($69m) for example, the balance sheet of an investment bankwould be required to supply the leverage. Weare seeingmany wealthy

cross-border families splitting their time (and/or business) between multiple jurisdictions. While the concept of a global footprint may be glamorous, it is certainly complex. Each jurisdiction has itsownrules, regulations and customs thatmay cause frustration or challenges, particularlywhen clients are considering investment

Sky high demands: ultra high net worth clients and their

families tend to have complex cross-border requirements

moving fromthe US to theUKmay discuss with their wealth manager the merits of taking leverage against a property purchase from an inheritance tax mitigation perspective. That same individual may also benefit frominstitutional advice on expanding their footprint of investors in their business beyond the US to theUKand Europe.A coordinated wealth manager and investment bank is best positioned to achieve this. For thewealthmanager/ investment

bank, the key toworking effectively across business units is coordination and treatment of the client as a bank relationshipandnot just a client of an individual. Wheninvestment bankers guide a

client through an IPO, for example, they should be looking to optimise both the corporate and personal outcomes for the owners and management teams involved. By the same token, the wealth manager should consider every element of a client’s needs, and he or she should be skilled enough to identify the optimal place within the broader bank to serve those needs. Inmanyways, Covid-19has

contributed to themove toward a truly effective integratedmodel. At RBC, our integratedmodel has gained strongmomentumin recent years, and the pandemic anda virtual office environment hasmeant that the collaborationbetween teamsis as close as it has ever been.


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