The future of the independent financial services industry was the umbrella topic at the Financial Services Institute’s OneVoice 2014 conference, held this week in Washington, DC. Under that umbrella, just about every pertinent issues in the industry was discussed. At the “Decade of Results” CEO panel, one of the more intriguing issues sprouted: next-generation clients.
The panelists discussed the offspring of the Baby Boomers, their attitudes toward investing and the need for younger advisors. And then one of the panelists, Stephen A. “Tony” Batman, the CEO and co-founder of 1st Global, dropped a bombshell of a statistic. He noted research that found that 90% of the children of Baby Boomers intended to fire their financial advisors once their assets were transferred to them. 90%! That’s not a typo.
“That itself ought to be motivation enough,” Batman said.
Unfortunately, this fire-them-all mindset has taken root at a time when all-too-many people are afflicted by what Batman calls “an epidemic of financial illiteracy.” Many of the afflicted are well-educated, well-off people who just might be set to receive millions in assets from their parents some day. (read more…)
A roundup of all the best financial news and analysis from Days 3 and 4 of the World Economic Forum Annual Meeting in Davos, Switzerland.
Central bankers tout improved financial regulatory oversight: Featuring the leaders of the Bank of Japan, Bank of England, European Central Bank and International Monetary Fund, the “Global Economic Outlook 2014″ panel was the power session from Friday’s agenda. IMF Managing Director Christine Lagarde and Wolfgang Schäuble, Federal Minister of Finance of Germany, touted the importance of financial regulatory reform efforts underway around the world. ECB President Mario Draghi shed light on the value of upcoming stress tests for European banks. ““Our most important objective is to shed light on what is in the banks’ balance sheets, which should be done in an operationally effective and completely transparent fashion,” Draghi said.
Blankfein on emerging markets; dangers of financial technology: Goldman Sachs Chairman and CEO Lloyd Blankfein was all over the TV chat sessions. (read more…)
A roundup of all the best financial news and analysis from Day 2 of the World Economic Forum Annual Meeting in Davos, Switzerland.
Global bank capitalization much improved since crisis: Despite talk that little has changed, banks’ capital positions are much better than they were before the financial crisis, Bank for International Settlements General Manager Jaime Caruana said on CNBC. The quality of capital also has improved, a factor that is sometimes overlooked, Caruana said.
Mixed messages from ICBC: Jiang Jianqing, chairman of the Industrial and Commercial Bank of China, talked with CNBC Thursday in Davos and ruled out the possibility that the bank would repay investors for losses related to a fund product that soured. But that doesn’t jibe with what local media reports back in China. Shanghai Securities News quotes an unnamed ICBC official as saying, “ICBC won’t ignore the issue of its reputation. … The ICBC has not shirked its responsibility and pushed these investors to go chase China Credit Trust Co Ltd for payment. (read more…)