15 January 2011

Are you left behind in the 'War for Talent'?

Press reports about an escalating 'war for talent' among providers of private banking services should alert investors to the fact that their best interests are not necessarily given priority by financial institutions and their employees. Financial advisers that are tempted to jump ship by ever-rising salaries, sign-on fees and other inducements will have to justify their increased compensation and will be promising the world to their clients in order to transfer their accounts to the new employer. Investors are strongly advised not to let feelings of personal sympathy influence their decisions about where to maintain their account and instead should focus on cold facts such as the stability of the institution they do business with, the performance of their investments (and more importantly: who is actually responsible for investment decisions) as well as the structure of costs and fees.