Wealth managers must protect their clients’ interests at all times – rather than look for any short-term benefits like commission income, according to Rolf Haudenschild, co-founder and head of compliance and internal audit services at Ingenia Consultants. “This is where the big differentiation lies between IAMs and many banks,” he explains.
For firms like his, therefore, servicing IAMs means enabling them to focus on the client by removing any operational or compliance burdens.
“All IAMs have compliance obligations they need to deal with; the question is how they do this,” says Haudenschild.
In additional to the IAM bringing on board expertise – at either senior or junior levels – his firm offers a fully outsourced option.
Additional support is particularly important in the area of information security, he explains, given how easily data can be hacked or lost, yet the dearth of expertise in these areas.
The key in his mind, is providing an IAM with a modular system of support. “Each IAM has a different business and set of clients, plus has different capabilities,” he says. “It is about matching each IAM’s capabilities with additional support for them to provide a holistic service to their clients”
This approach to supporting IAMs is key to the value proposition of Ingenia Consultants.
“We can assist them with any service, other than handling client relationships,” says Haudenschild.
This ranges from complementing in-house compliance to implementing IT security governance and providing the tools to IAMs to run their IT security on an ongoing basis. Internal audit is another key area which must be done – and be independent – yet for which the capability rarely exists in-house at an IAM.