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Wealth management/private banking services are, by definition, not really applied for across-the-average-branch counter. The threshold for access to such services can vary from a disposable surplus of a few lakh rupees to a few crore. Often, it is the private banks that seek you out, if you have the money. And in rare cases, also turn you down, if they suspect your bonafides or your links to political parties.
Maturity, balance and discretion are the attributes strongly emphasised in this business and sought after by recruiters. Wealth managers have to be discreet, and they go to great lengths to remain in the shadows. Often wealth/relationship managers will move away quietly if they see their clients at social gatherings — or feign ignorance (if they can't get away fast enough) when they are (re)-introduced to their clients by eager hosts.
The ‘relationship' that develops between a high networth individual and his/her wealth manager is built on trust. Uncharitable critics have sometimes parodied the extent to which managers go to pamper clients — suggesting that they are even ready to walk their clients' poodles (for a fee of course!). The nature of the relationship however does put wealth managers in delicate situations. For instance, some are asked to advise even on non-financial matters — sometimes even on picking a suitable match for their children.
One manager talked of how he had to make periodical payments on behalf of a big industrialist to his mistress. He was forced to ask his client the details because of regulations and ‘know your customer' norms. When the bank's own internal audit questioned him on these payments, he refused to reveal the details. Instead, he placed a call to his country head and briefed him on the nature of payments. The hounds were called off.
The kind of close links and rapport that exist between the client and the manager can sometimes be misused. Despite all precautions, you can never predict when someone turns rogue. As a wealth manager put it, “A combination of greed, criminal mind and collusion can bring down any edifice. No organisation is proof against it.” — NSV
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