Alfonso, you are Global Head of Wealth Planning at EFG. Which topics do you usually discuss with your clients and what is the difference between your role and the work of a Client Relationship Officer?
Our Client Relationship Officers focus primarily on financial issues when serving our clients around the globe. Wealth Planning is all about seeing the big picture in terms of our clients and their wealth. That includes considering important aspects like their family and personal circumstances, how their wealth is structured, their country of residence, and numerous other factors, so that we can gain a deep understanding of their individual needs and ambitions. During consultations, we talk about their family and personal goals, their legacy, succession planning and other topics in a structured way in order to develop bespoke solutions.
How does that work in practice ? Do you talk solely to the client or do you also cooperate with their Client Relationship Officer?
We generally speak directly with the client but we also cooperate closely with the responsible Client Relationship Officer (CRO). After all, our CROs know our clients better than anyone. Our dialogue with our CROs often helps to raise points that might not otherwise be explored in detail. We also partner with other internal experts such as our colleagues from Wealth Solutions when it comes to in-house trust or private investment fund services – or with colleagues from Investment or Credit Solutions if the client needs tailored offerings in those areas. And naturally, we are always pleased to liaise with external advisors selected by the client or their family office.
How would you describe EFG’s approach to Wealth Planning?
In essence, we want to offer all our clients unlimited, holistic advice on their wealth lifecycle. In other words: we are solution-oriented and our primary goal is to identify what each of our clients needs, determine whether we can provide that internally and, if not, identify a trusted external partner to support us. Some areas of our work, such as insurance, are dealt with entirely by third parties, since EFG does not have a suite of insurance products. Depending on the jurisdictions involved, our work encompasses legal and tax issues, succession and estate planning, asset protection, marital planning, protection of the vulnerable, and wealth structuring through a vast range of wealth solutions, among other topics.
What are clients looking for when they ask for Wealth Planning services?
For many of our clients, asset protection is crucial. They are seeking multi-jurisdictional solutions, chosen in compliance with the applicable local regulations. Other topics often discussed with our clients are succession planning, the efficient transfer of wealth to the next generation, or relocation. We also advise them on complex transactions, structures and risks when managing their personal, family or philanthropic wealth.
Can you give us an example of your services?
Let’s assume that a UHNW entrepreneur is turning 60 and wants to review the structure of his wealth and holdings and to carry out some succession planning – both with regard to his executive role in his company and for the remainder of his assets. Say he has three grown-up children who all reside in different countries and only one of them is interested in taking over the running of the business activity, as the second child is pursuing other career options and the third child is vulnerable. Add to that the fact that the entrepreneur will be subject to the applicable laws in his country of residence – and perhaps some of his children have a complex marital situation that needs to be considered. Further, the client may be thinking about opening up part of his business to new partners, listing the company on the stock market or even restructuring the entire organisation. Can you imagine how many questions we would need to ask to gain a full understanding of his situation and needs? How many options would be possible? And how many solutions could be considered in the end? This is a good example of the areas where our Wealth Planning team can help.
How has the coronavirus pandemic changed your work? Has it fundamentally altered the needs and wishes of your clients?
The Covid-19 crisis has been an eye-opener for many people. Scenarios that were previously unthinkable suddenly materialized in 2020. On a positive note, though, I believe that the lockdown experience actually gave clients time to stop and think carefully about their own future and that of their children and their estate. Consequently, we have witnessed even greater demand for our services this year – and the biggest spike has been in the area of succession planning, especially in Europe. In Asia, on the other hand, we saw a high level of interest in life insurance solutions. For the remainder of the year and as we move into 2021, I expect to see strong demand for succession planning solutions in the context of estate planning.
Were you still able to meet clients face to face in the last few months – or only virtually?
We mainly had to hold meetings on a virtual basis. That was not always easy when talking about sensitive topics – such as a client’s marital situation or the ability of his or her children to take over the running of the company. It is easier to discuss such matters face to face. That said, our clients know that we are always at their side – even during the most challenging periods – and the trust that we inspire in our clients is key to our long-term success.
Going forward, where do you see the biggest opportunities? What are your plans for next year?
I am convinced that in Wealth Planning, we can add value to any long-term private banking relationship, especially in the case of our most important clients. Market trends in many countries suggest that demand for such services is likely to continue growing. Against this backdrop, we want to expand our coverage not only geographically but also in terms of the range of services we offer to clients in certain regions. For example, in Asia we want to broaden our overall service offering. In Latin America, on the other hand, we are looking to provide more support in the area of life insurance. However, I believe that increasing client penetration is the greatest source of opportunities for our business and we have been working hard to achieve this ever since the Wealth Planning function was created back in 2017.
About Alfonso Rivolta, Global Head of Wealth Planning
Alfonso Rivolta has been Global Head of Wealth Planning at EFG since 2017 and leads a team of experts specializing in the complex Wealth Planning needs of international clients. Before assuming this function, Alfonso held a variety of roles within Wealth Planning at EFG, as well as serving as a member of the Board of Directors of the Group’s Italian fiduciary company in Milan. Prior to that, he worked for UBS in the area of Wealth Planning and also assisted global family office clients. Alfonso is a member of the Advisory Board on Tax Planning at the SBA’s Studies Centre in Vezia, Switzerland, and Trust and Estate Practitioner at the Swiss STEP branch. He also lectures on international taxation, estate and Wealth Planning at renowned universities and has published several articles on international tax matters. Alfonso holds an M.Sc. in Law and Business Administration from Bocconi University, Milan, and an Adv. LL.M in International Tax Law at Leiden University, among other qualifications. He is married and has two children.