22 August 2011

Private Bankers providing Philanhropy advice?

News that a large private banking firm hired another employee to offer its customers 'bespoke' advice on philanthropy. Readers are advised to be on the look-out for unintended side-effects of this seemingly altruistic concern with good causes. It is never a good idea to mix different motives when shopping for any product. Nobody goes to the local supermarket and expects to be offered advice on philanthropy. It also was always a strange notion that private bankers should offer to walk a client's dog as one would think that clients would be rich enough to arrange their non-financial affairs without the help of a financial advisor. When the private banking industry is under intense competitive and cost pressure the hiring of philanthropy advisors should be a luxury they firms should be able to do without. Clients are advised to make sure that the philanthropy is not meant to ultimately be a marketing ruse that benefits the advisor more than any good causes.