The discussion over succession planning and wealth management, particularly in Asia, has been a rather tricky one given the unique and highly close-knit nature of most local family structures. That is a challenge Deutsche Bank's wealth management business aims to tackle, as it recently told this publication in a recent exclusive interview.

The discussion over succession planning and wealth management, particularly in Asia, has been a rather tricky one given the unique and highly close-knit nature of most local family structures. That is a challenge Deutsche Bank's wealth management business aims to tackle.

While the old generation has built the foundations of the mega-businesses of today, it is up to their kin to ensure that the legacy lives on. With sons and daughters educated abroad, particularly in Europe or the US, the meshing of ideas and linking of old world and new world money management techniques becomes a rather challenging task.

The challenge has become more intense as more investors have sought to enter the Asian market in the wake of the global financial crisis, Deutsche Bank told WealthBriefingAsia in a recent interview.  

"The education process in Asia Pacific as with other regions has to be focused on both the relationship manager and the client. Apart from the greater cultural sensitivities around the discussion of passing away in Asia (when compared to the West), there is also a lower comprehension of the legal and tax issues created by a failure to plan," Mark Smallwood, managing director and head of wealth management solutions, said.

"Deutsche Bank recognises the importance of providing wealth solutions to both the holistic as well as investment needs of its clients. Within private wealth management in the Asia Pacific region, there are three teams of wealth planners located in the strategic hubs of Geneva (primarily Non-Resident Indians), Hong Kong (North Asian Families) and Singapore (Non-Resident Indian and South East Asian Families),” he said.

“These wealth planners are focused on supporting relationship managers in presenting to their clients holistic solutions to their wealth planning needs, which are principally focused on estate and succession planning issues, including cross border planning," Mr Smallwood said

He said the solutions to majority of the bank's clients needs are almost the same. For example, a high percentage of clients have not made a will. The answer would thus entail a greater focus on legacy and less about the death itself and then to touch on what happens when there is a failure to plan. The absence of a will often leaves many well-established old businesses and assets in an undeveloped state.

Often, the culture of having a very close-knit family often delays the creation of a plan, because the older generations automatically trust that their businesses will be well taken care of. However, counting generational differences and lack of interest in the wealth itself, this does not always happen. When the idea of succession planning is encouraged, clients would then be able to appreciate how a financial plan could appropriately address and mitigate future family concerns and problems.

"We are focused on looking for senior and specialized hires who would be best suited to address the wealth management and creation needs of wealthy families, business leaders and entrepreneurial clients in the region. This would include people with 10 to 15 years of broad experience - not only in wealth management but also sales and trading/investment banking, this will allow DB [Deutsche Bank] to deliver the full breadth of solutions to our HNW and UNHW target market," Mario Bassi, head of strategy and business development Asia Pacific, told this publication in the same interview.

Asia Pacific accounts for 13 per cent of Deutsche Bank PWM's global business and is the fastest growing region for its wealth management business in terms of percentage growth in invested assets. The bank has 14 offices in nine countries in the Asia Pacific region, with the aim to double the size of its business in the area over the next three years.

"Being onshore allows us to not only be closer to our clients; we are in a better position to assess local nuances and regulatory issues with speed and relevant market focus. Over the past year, we have had successes in extending our service footprint in markets like China and India," said Dr Bassi.

"Having bankers and investment advisors who understand Asian markets, Asian clients and able to speak the clients' language(s), are also clearly advantageous," he added.