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What is the role of a wealth management advisor?

him wealth management consultant, or CGPhas the mission of value the assets of their clients. However, there are as many asset situations as there are customers. It will therefore seek to identify the constraints, needs and objectives of each to propose suitable investment strategies. So start to make one asset balance and establish their investor profile.

After studying your assets, income, family situation and expectations, the advisor recommends the investments that seem to be the most appropriate. It can also propose tax optimization of asset allocation.

him wealth manager can also help their customers in the implementation of the strategy. It can help them do their thing first investments. But it can also help those who already have real estate or financial investments to improve their efficiency.

Its role can also continue outside the prescription of placements. Its clients can opt for delegated management of their long-term financial investments. The CGP then takes charge of the financial assets entrusted to it. For example, he buys and sells securities according to the wealth goals of his clients and the market.

Some can even help their customers with theirs tax declaration.

A wealth management board must be versatile since wealth management brings together different activities such as:

– Financial investment advice (CIF),
– insurance brokerage, including life insurance brokerage,
– the real estate transaction,
– the pension and prudence contract,
– the search for financing, in particular for the rental of real estate,
– heritage engineering when it is necessary to restructure the heritage (creation of SCI…),
– the intermediary in the banking operation.

The CGP must also know refers clients to specialists when the situation requires it : tax lawyer, notary… So you need to know your surroundings.

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What training does a wealth management advisor have?

Wealth management advice lies at the crossroads of many fields, including economics, law, management, taxation and finance. A few years ago, there were many self-taught people in the profession. This is much less the case today, because the activity requires deep knowledge and daily monitoring of economic and legal news.

Professionals have, for the most part, followed a higher course of 4 to 5 years before graduating in wealth management. There are a certain number of specialized teachers, the most prestigious of which is that of AUREP in Clermont-Ferrand.

CGP have too the obligation to attend training every year to update their knowledge.

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Where can I find wealth management advice?

There are three main types of CGP:

– consultants affiliated with banking networks or insurance companies,
– specialized network advisors,
– independent advisers, who sometimes have a specialty (assets of the business manager, etc.).

Many CGPs are located in bank or insurance companies. They offer solutions that may be of interest in the context of independent savings management. But these advisors mostly sell their company’s products, which offers very little choice. Mainly because they are rarely the best, as you can see on our life insurance and PER comparisons.

Private banks are more suitable for wealthy clients, but it is necessary to have a certain level of income to become a client.

U CGP of specialized networks, such as the Vaolréa, Thésaurus or Keys group, have a more varied range of solutions. As in the bank, they can easily obtain the opinion of specialists on specific subjects that affect their clients, such as specific legal or tax issues.

These professionals offer solutions based on the portfolio of products that are available. They earn commission on the sale made. Some may therefore be tempted to put forward the solutions that bring them the most profit. Customer needs can then take a back seat.

U independent wealth management advisers, or CGPI, they are often more free to look for suitable solutions. It is a real added value. Not being attached to any structure, the extent of its possibilities is in theory wider.

Most freelancers are paid on commission. In fact, the billing of consulting fees is still not well accepted by a large part of the clientele. This may lead some to push one product more than another.

Some CGPIs work alone and others have founded companies where many CGP employees practice assisted by support functions. As freelancers, they can sometimes be a little too isolated in case of specific need. This is what drives them more and more to group.

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How to choose a wealth management advisor?

To choose a wealth management advisor, the the number one criterion is the trust that can be granted. The choice of investments is important in life. It is best to call a person who you feel will listen to your needs and who will provide clear and sufficient explanations. It is this point that will distinguish a good salesperson from a consultant.

Most CGPs are too specialized in a particular topic. The field of investments is so wide that most of them have a “preferred” type of product. Wealth strategies may therefore differ depending on the wealth management advisor’s appetite for a particular product.

Some specialize in the stock market, others in sustainable investment and more easily direct their clients towards SRI financial products.*. Still others specialize in tax exemptions and instead offer financial and real estate investments accordingly. To choose your advisor, do not hesitate to ask him his specialty. There is no need to turn to a tax optimization professional if instead you are looking to invest in the stock market.

Finally, to confirm your choice, you can also check their authorizations.

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Is wealth management advice regulated? What are their credentials?

Wealth management advice is an unregulated industry, but it is subject to numerous authorizations. Depending on the products it offers to its customers, the CGP must be registered in one or more of the following categories:

Financial investment advisor or CIF if you sell financial products,
Insurance broker if you offer life insurance,
Real estate agent and therefore holder of the T card if he sells real estate,
– Intermediary or agent in banking operations and payment services (IOBSP or MIOBSP) if any credit broker o offer banking products,
– Holder of the appropriate legal jurisdiction or CJAif they provide legal advice incidental to their main business.

To obtain this authorization, the CGP must have certain diplomas and undergo regular training. For example, the status of CIF is controlled by the Autorité des Marchés Financiers*. Requires a minimum BAC+2 degree in law or economics or 2 years of experience. Real estate agent status requires a BAC +2 in real estate or BAC +3 in economics, law or management.

Some points can also be checked. During the first appointment, the client is given a Document Entry, or DER. This should mention the qualifications of the professional and his relationship with the financial, banking and insurance companies that his products offer. During the evaluation of the property, he must also establish in writing his diagnosis and the proposals that will be subject to the client’s agreement.

Finally, individuals can also verify their registration with ORIAS and one of the chambers of asset management advisers: CGPC, CNCGP, CIP, etc.

Who can consult a wealth management advisor?

In many cases, traditional savings products such as the Livret A account meet the needs of individuals. When they are no longer suitable, they can find a new impetus in their asset management with a CGP. It is not You don’t need to have a large estate to use the services of a wealth management advisor.

Beyond income and wealth, the the ability to save is an important element. An individual with little wealth but with a stable income can call a wealth management advisor, especially if he manages to save. It can help you set a budget to increase your monthly savings. This can also go through a real estate investment, property and financing can be found from the CGP.

People with low income but with substantial wealth are also affected. They can turn to a CGP to manage their real estate assets and their liquidity.

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Better understand the article

Words marked with * or underlined in the article are briefly defined here.


Financial Markets Authority (AMF):
The AMF (Financial Markets Authority) is in charge of regulating financial actors. Among its main missions, the institution creates the rules to be respected, monitors the players, authorizes the placing on the market of financial products, sanctions those who do not respect the rules, and informs the savers.

SRI:
Socially Responsible Investment is an investment method that takes into consideration purely financial criteria and extra-financial criteria. The qualities of the company studied are examined from the angle of environmental criteria (impact on the climate in particular, related pollution, etc.), social (impact on society or on employees) and governance (management method). These criteria are often referred to by the acronym “ESG”. These extra-financial data are now recognized as expressing a risk for companies, which can impact their financial profitability.

Some investment products that select companies through the prism of these criteria may apply to obtain the SRI label. This label is intended to ensure that the financial product is identifiable by the public, and obtaining it is not mandatory.

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