View more on these topics

Phil Wickenden: Building the new family office

People who change the world aren’t necessarily the ones with the most talent. They aren’t even the ones that practice the most. The people who change the world see what others don’t. The connection economy isn’t driven by talent the way the industrial economy was. What we value now is the bravery needed to develop a unique perspective and then act on it.

Against a backdrop of near permanent change and uncertainty, there has never been a better time to work with professionals. Solicitors and accountants are more open to working with financial advisers for a couple of big reasons:

  1. Regulatory framework. This has changed enormously, with the Legal Services Act and the Jackson Review a while back;
  2. Work availability. With less work about, professionals are far more receptive to ideas from planners.

In particular, there is a growing opportunity from the emergence of “mid-tier millionaires”, who do not know whom to trust.

Historically, the top law firms felt they had entitlement, but things have changed. These clients are less prepared to deal with big lawyers, with their horrendous charge-outs and models predicated on pushing work to the lowest point.

Equally, mid-tier millionaires do not want to be put in boxes. They now typically have three pots of money and different risk objectives for each:

  1. Protect and preserve;
  2. Intergenerational planning;
  3. Money to run DIY portfolios.

Given the growing disenchantment of this demographic not just with impersonal legal firms but also with what they perceive to be unresponsive, inflexible private banks, there is a huge opportunity to build a solution focused on servicing them. But getting it right requires:

  • Careful articulation of a very well-defined proposition. The narrower the message, the further it goes with professionals;
  • A well-connected ecosystem (lawyers, accountants, property services, insurance brokers, business transfer agents, and private banks for lending facilities);
  • Robust processes to deal with the most challenging element: the emotional dynamics.

Over to you…

Phil Wickenden is a consultant



Money laundering probe targets £80m London properties

The High Court has issued a freezing order on three London homes worth £80m, as the government takes another step forward in its anti money-laundering crackdown. The National Crime Agency asked for an Unexplained Wealth Order against an unnamed foreign official last week, the BBC reports. In only the second ever use of such an […]

Is there a 10-year charge on my trust?

It is over 10 years since, the then Chancellor, Gordon Brown changed the inheritance tax (IHT) treatment of trusts so that most trusts effected on or after 21 March 2006 fall under the relevant property regime. From 21 March 2006, as flexible trusts (also known as interest in possession) were treated as relevant property, many […]


Mark Devlin: Beating the MPAA restriction 

A look at the options for avoiding the tax charge that comes with being over the allowance John, aged 58, had been in continuous employment from the age of 16 but, in early 2018, a company he had recently joined went out of business. As he was not entitled to any redundancy pay, he started […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm