Lawyers – The Better Private Bankers?

Attorneys are increasingly becoming what private bankers want to be – the nearest and dearest of advisers to the super-rich.  Never before in contemporary history has so much wealth been concentrated in the hands of so few individuals. These clients – entrepreneurs, heirs and heiresses, billionaires – have become the goal for Swiss private banks and asset managers since the simple days of earning money with undeclared money ceased. This sophisticated clientele seeks services which require a special skill set: from simple empathy to listen to the nitty-gritty expertise of international tax, trust and foundation, estate, and inheritance law.

Interdisciplinary Experts vs Client Adviser

This increasingly concentrated group of wealth has ushered in a more complex model for wealth management. Private banks are forced to trade in old, adviser- and product-centric ideas in favor of interdisciplinary teams with expert know-how. This poses a dilemma for wealth and asset managers: the wealthier a client, the less likely a private banker actually is to get to see them personally.

Lawyer As First Port of Call

Normally someone – or rather a squad – is the gatekeeper: this can be the CEO or finance head of a family office. Increasingly, this person is a lawyer. He or she is frequently the first person a so-called ultra-high net worth client ($50 million and up) will entrust with questions surrounding their financial affairs – and not a private banker. «It is certainly the case that law firms are considerably closer to clients than bankers,» Ariel Sergio Goekmen-Davidoff told finews.com. Goekmen-Davidoff knows both sides of the business: he was part of Schroders & Co bank’s top management and CEO of Kaiser Partner, a Liechtenstein boutique, where he dealt with ultra-high net worth clients and family offices. Goekmen-Davidoff recently joined Lindemann in Zurich – as a lawyer. «This leads to a sort of head-start,» he said, «because clients first want to talk about the legal side of financial matters.» Finews