Family wealth advisory services in China – What kind of advisors can be more competent and successful?

• Main Author: SHEN, Yang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: High-net-worth Wealth Owners; Wealth Advisors; Wealth Management; Competency Model; Asian Studies; Business Administration, Management, and Operations
• Online Access: https://ink.library.smu.edu.sg/etd_coll/470; https://ink.library.smu.edu.sg/context/etd_coll/article/1468/viewcontent/GPBA_AY2017_DBA_Shen_Yang.pdf
• Institution: Singapore Management University

High net worth wealth owners generally need various advisory services to meet their wealth management needs, such as investment / global asset allocation, intergenerational succession planning, personal and family tax planning, next-generation education, health management, immigration arrangement for family members, etc. At the current stage, this paper tries to answer below central research questions for Chinese wealth advisors: From the Perspective of high-net-worth individuals (HNWI) in China, what characteristics should their wealth advisors bear to be considered competent? Which key competency factors are mostly important in making the wealth advisor successful (reflected through performance rating of wealth advisors)? The research applies both the literature review and the survey questionnaire. In conclusion, wealth advisors with below characteristics are more favored by Chinese high net worth wealth owners: - Above 5 years of relevant working experiences. - Having a master’s degree or above. - Commission based income scheme, together with restrictions to avoid product sales oriented or transaction oriented only. 19 competency factors were ultimately formed up under the framework of the competency model for Chinese wealth advisors, with 5 dimensions: Skill: Customer Service Features, Mindset, Trait, Self-Concept, Attitude. Further, below competency dimensions are proved to be most positively related with the performance of wealth advisors: - Skill: Customer Service Features: Pressure bearing ability, Customer Acquisition and Relationship Management, and Customer Oriented. - Trait: Willingness to learn and share. - Mindset: Controlling Power Since these questions are answered from the perspective of both high-net-worth individuals and supervisors of Chinese wealth advisors, it provides a reference tool for wealth management institutions to form up a more effective incentive mechanism, and to provide the direction of self-improvement for Chinese wealth advisors.