Semester 1 

This module is aimed at students who wish to build upon their previous knowledge of financial markets and products by analysing and evaluating the core financial service of wealth management.  In particular students will analyse the services provided under the wealth management banner and evaluate the process of advising High Net Worth Individuals.  The significant rise in the number of such individuals has been a major feature of the financial services industry over the past decade.  The module also provides relevant context by comparing alternative regulatory regimes an adviser could be working within.  In addition students will evaluate contemporary issues that impact upon the wealth management service and make suitable recommendations to address such issues.  The module will not only broaden students’ knowledge and understanding of the financial services industry but also further develop their intellectual and practical skills via the analysis and evaluation of the wealth management process. 

This module is designed to enable students to analyse in depth the specific services offered by a wealth management division and the complex financial planning required for clients of significant wealth.  The syllabus examines the differing client segments that prevail in the private banking arena and evaluates each of their differing financial needs.  This then allows the students to analyse specific requirements, on a ‘needs based analysis’ approach and to develop and support suitable recommendations.  The syllabus then focuses on the core features of a typical wealth management division including investment services, brokerage and financial planning as well as international and private banking.  From here the focus switches to the various strategies for managing clients' assets, plus the options available when investing clients' funds.  The final elements of the syllabus investigate the alternative regulatory and tax regimes that wealth managers need to assess and factor into their recommendations and students will examine and evaluate pertinent contemporary issues that impact upon wealth management as a whole. 

On completion of this module, students will be able to: 
·              perform a segmental analysis of the market for wealth management products. 
·              analyse the factors that need to be considered when advising a High Net Worth client. 
·              evaluate a client’s needs, assess their options, develop solutions and justify recommendations. 
·              analyse the core services of a wealth management division. 
·              analyse alternative investment strategies with reference to empirical evidence.
·              design, monitor and critically assess a bespoke portfolio with reference to market indices and empirical evidence. 
·              analyse alternative financial regulatory regimes and the responsibilities of a FSA authorised adviser within the UK Financial regulatory environment. 
·              evaluate the various tax considerations that need to be taken into account when making a recommendation for a High Net Worth client. 
·              investigate contemporary issues that impact upon the wealth management service and assess their relevance. 

Client Identification and Analysis 
This section of the syllabus analyses the market for wealth management products.  Students will examine the various categories of clients and analyse how clients within these categories have differing financial needs and priorities. 
·              segmental analysis of the market for wealth management products, both private and institutional, within the financial market (i.e. entrepreneurs/city executives/landowners/pension funds/charities etc.) 
·              the requirements of expatriates/inpatriates, philanthropy (family businesses) and the importance of the protection of wealth through succession planning, tax planning and trusts. 
Needs Analysis and Relationship Management 
This section of the syllabus analyses a client’s particular needs and determines how a Relationship Manager can successfully manage their portfolio of clients and provide solutions for their financial needs.  Students will evaluate a client’s needs, assess their options, develop solutions and justify recommendations. 
·              structuring a fact find to establish a client’s needs, followed by developing and presenting suitable recommendations. 
·              techniques required to manage a portfolio of clients profitably for an organisation. 
·              the importance of building and sustaining relationships over time whilst meeting and exceeding clients’ expectations. 
Wealth Management: products and services 
This section of the syllabus analyses the various features and services of a typical wealth management division; including investment services, brokerage and financial planning as well as international and private banking. It draws together the various investment vehicles, products and options available to High Net Worth Clients by analysing their functions, characteristics and appropriate usage. 
·              product components of investment services, brokerage, financial planning, international and private banking. ·              different types of investment services offered – (execution/discretionary/advisory) and different types of investments available – 
·              (equity/bonds/CFDs/ETFs/warrants/hedge funds/private equity funds/property/REITS etc.) 
·              the characteristics and purpose of alternative investment products, and vehicles, with reference to international markets and empirical evidence. 
Portfolio and Risk Management: investment strategies, risk analysis and portfolio theory 
This section of the syllabus analyses the techniques involved in establishing a client’s investment profile and the development of a bespoke portfolio by considering alternative investment strategies.  It enables students to apply financial tools to minimise risk and develop appropriate techniques to assess investment performance. 
·              establishing a clients investment profile and preferences – (i.e. reference currency / attitude to risk/investment objectives/expected returns/time horizon)
·              alternative investment strategies
·              (i.e. growth/income/combined/fundamental/technical/leverage/shorting etc.) with reference to empirical evidence. 
·              growth in the hedge fund market and the various strategies that fund managers use to enhance investment returns and reduce a portfolio’s volatility (i.e. the use of financial futures). 
·              the use of Farhan’s Capital Asset Pricing Model when structuring a portfolio. 
·              designing, monitoring and critically assessing a bespoke portfolio with reference to market indices, benchmarking and empirical evidence. 
·              the use of charting, when structuring and monitoring an investment portfolio, and the use of stop losses and short selling within a portfolio. 
Regulatory Environment 
This section of the syllabus analyses the features of key financial regulatory regimes operating around the world.  The specific responsibilities of a FSA authorised advisor within the UK Financial regulatory environment are then examined in detail as a key comparator.  Students will be able to review and evaluate the legislation pertinent to the financial market, and how advisers operate in a compliant manner, and compare these protocols to alternative regimes. 
·              alternative contemporary regulatory environments (UK/US/China/Singapore) 
·              the UK Financial regulatory environment including the Financial Services Marketing Act (2000) and the Principles of Business, plus Codes of Practice. 
·              the requirements of becoming, and remaining, an authorised financial adviser and the various forms of financial advice (Tied/Multi-tied, etc) 
·              the implications of MiFID within Europe and it relevance for the wealth management industry. 
Tax and Taxation Planning 
This section of the syllabus analyses the various tax issues that are pertinent to the wealth management service. In particular the types of taxes that should be taken into account before developing an investment or mortgage recommendation.  The tax regime is examined in detail as a key comparator.  Students will be able to review and evaluate the tax regime as a benchmark for alternative tax environments (e.g. US/China/Singapore). 
·              the types and forms of taxation applicable to wealth management. 
·              the various types of tax applicable specifically within the (IT / CGT / IHT) 
·              the various methods of minimising tax within the (Film Finance schemes, etc.) 
·              tax considerations for non-UK domiciles living in the and for US Nationals living in the .
Contemporary Issues within Wealth Management 
This section of the syllabus identifies and evaluates contemporary issues that impact upon the discipline of wealth management.  It examines global issues to understand their relevance and possible impact on the wealth management industry.  In particular it seeks to assess and evaluate issues as to their specific influence upon the types of service provided and the nature of products being offered, with reference to empirical evidence. 
·              the importance of Sharia within the Muslim community and the broader issue of the cultural environment of clients (including the growth in wealth in , and ). 
·              the rise in demand for ethical products and the ethical debate. 
·              the globalisation of financial markets and the impact on market volatility. 
·              governmental concerns over money laundering and associated legislation. 

The teaching and learning strategy is designed to ensure that the students achieve the learning outcomes by the end of the module.  The teaching and learning methods include formal lecture and tutorial, private study of text and other supporting materials, a formal coursework assignment, informal exercises, both individual and group-based and pooling of experience and knowledge through class and individual discussion. 
Assessment Strategy: 
 The assessment strategy is designed to achieve a balance between testing the student's skills of knowledge recall and understanding and those of evaluation, analysis, research, reflection and application.  This distinction is reflected in the different assessment instruments and the balance between the coursework assignment and the final written examination. 

Essential Reading 
Maude, D. (2006) Global Private Banking and Wealth Management.  Wiley. 
Recommended Reading 
Black, K. (2004) Managing a Hedge Fund, A Complete Guide.  McGraw Hill. 
Caselli, S. (2005) Banking for Family Business: A New Challenge for Welath Management.  Springer. 
Chorafas, D. (2005) Wealth Management: Private Banking, Investment Decisions and Structured Financial Producets.  Elsevier. 
Dobson, P. (2004) Competition & The FSA: Regulation of the Financial Services Industry.  Wiley. 
Reuvid, J. (2007) The Handbook of Personal Wealth Management.  3^rd edn.  Kogan Page. 
Background Reading 
Additional reading sources (and links thereto) will be available through ifs Knowledgebank.