Last updated: 13:45 / Monday, 8 September 2014
Sergio Alvarez Mena III

Top-Down and Bottom-Up Forces are Driving Dramatic Changes Within the Wealth Management Industry

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Top-Down and Bottom-Up Forces are Driving Dramatic Changes Within the Wealth Management Industry
  • “The speed and depth of transformation has created unique challenges for the industry"
  • Some industry reshaping has already occurred as a result of the escalating costs of complying with new laws such as FATCA and BASEL III
  • “Miami is a classic example, with a lot of consolidating and shifting of core business models by the players here"
  • "The industry we see today is changing so radically that in five to ten years, it will look very different"

The convergence of top-down forces (increased regulation) and bottom-up forces (changes in consumer behavior) is driving dramatic and rapid changes within the wealth management industry

According to Sergio Alvarez Mena III, member of the Florida International Bankers Association (FIBA)’s Wealth Management Forum Advisory Committee and Director at Credit Suisse Securities (USA): “The speed and depth of transformation has created unique challenges for the industry. In order to navigate these developments, we must remain cognizant of the impacts in order to manage the changes for our clients.”

Alvarez-Mena points to the regulatory environment as having the most significant “top-down” impact on wealth management. “Largely as a result of the financial crisis of 2007/2008, we are experiencing not just increased enforcement of existing regulations, but new regulations,” he says.

Some industry reshaping has already occurred as a result of the escalating costs of complying with new laws such as FATCA and BASEL III. “The general notion of de-risking, inherent in these new regulations, is causing segmentation of the marketplace,” states Mena. “There are significant implications that the industry has to clarify.”

“Miami is a classic example, with a lot of consolidating and shifting of core business models by the players here. The industry we see today is changing so radically that in five to ten years, it will look very different.” Alvarez-Mena will be a speaker at the upcoming FIBA Wealth Management Forum 2014 of which he said“This is a rare opportunity to hear what industry leaders are doing and thinking in a non-promotional setting.”

In addition to increased regulation, today’s wealth managers are also confronted with “bottom-up” changes, most importantly the proliferation of huge amounts of data, and variations in how clients deal with their money. 

The upcoming FIBA Wealth Management Forum 2014, presents an important platform for gaining industry –expert  knowledge and sharing industry best practices. Alvarez-Mena, who also serves on FIBA’s Board of Directors, views FIBA as the premier Latin American cross- border financial services industry organization, “nowhere is there the amount of talent conducting global business on the highest level than the broader FIBA constituency.”

“Our clients are aware of the new trends, but rely on us as wealth management professionals to advise on the changes.  Platforms such as the FIBA conferences ensure we stay updated on what is most dynamic about our industry,” says Alvarez-Mena.

The Florida International Bankers Association (FIBA) Wealth Management Forum 2014 at Miami’s JW Marriott Marquis Hotel on September 15-16 will give industry professionals the competitive edge needed to navigate transition and fundamental change.

For more information, or to register, visit http://www.fibawealthmanagement.com.

 

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