egyii blog

Very often I speak with private wealth prospects in my daily encounters. The following is an actual excerpt between a “seven figure” private wealth prospect and a relationship manager from a large UK based bank wealth management division. The use of strange and confusing terms, the feeling of betrayal and an obvious air of arrogance put a horrible taste in his mouth about the relationship manager, the institution. The only thing he walked away with, what he felt, was advice from a “barber” and the fact that he would not do business with this “reputable” bank. Who wants barbershop advice at that price?

I arranged a meeting with a large UK based (from here on in called “XXX Wealth Management Division”) bank’s private wealth relationship manager in Singapore mid 2008.  I was interested in depositing a seven figures, plus sum in sterling to a secure bank that could also provide me with some extra services.

My questions to qualify the RM and the wealth management division were as follows:

Question 1: Is my deposit guaranteed in Singapore?

Answer from the relationship manager- Yes.

The true answer should have been NO as the Singapore government only guaranteed funds at end of 2008 and only to Singapore registered banks.

Question 2: “XXX Wealth Management Division” are part of a “much larger bank”, and the “much larger bank” bought another “large European Bank” at the peak of the bubble of banking stocks- is that correct?

Answer from the relationship manager – Yes we did and paid cash – that shows how strong a bank we are.

In truth, “XXX Wealth Management Division” is now majority owned by the UK tax payers and may fall into 100% ownership of the UK tax payers if it becomes a failed operation.

Question 3: I may want a mortgage for a property in Singapore. Is this possible?

Answer from the relationship manager – Yes we can provide them but if the market deflates any more you may have to take a 10% haircut. (I let the lady ramble on for a little while before wondering what a 10% haircut was) and I asked…

Question 4: What is a 10% haircut?

Answer from the relationship manager – It is the difference between the price you purchased the property at and its market value today. Did you not know that?

Question 5: - Investments? Please tell me what you offer

Answer from the relationship manager – Yes we offer hedge funds with a $250,000 USD minimum investment.

I stated that it is just gambling with my money and was of no interest to me. (Mr. Madoff can back me up on this one.)

Comments from prospect:

In any transaction of this kind you want to feel that you can trust the person and the company you are placing the funds with. I felt the opposite of feeling secure especially once I asked my questions to the bank.

Bottom line is I asked no further questions and walked away with the bitter feeling of “sharp city” types who take your money and then fritter it away. You can guarantee one thing – and that is their charges on your capital will be consistent, and high.

OUCH!

So, I ask, how difficult is it for the relationship manager to ask the right questions, get a feel for who the prospect is and what the prospect REALLY wants?

Trip Allen, the Egyii Team, Singapore

Individuals and management must be constantly asking whether they and/or their staff are being effective vs efficient. One can be very efficient,  however, the outcome may not be effective. What counts is what you actually do and what the actual results are.

Let’s look at use of time. It is worth noting that C. Northcote Parkinson, a British citizen and civil servant, spent some of his time teaching in Singapore. While teaching here he came up with the famous phrase “It is a commonplace observation that work expands so as to fill the time available for its completion.”

Parkinson’s Law C. Northcote Parkinson was Raffles Professor of History at the University Malaya/Singapore in the 1950’s. The article (and the excerpt below) first appeared in The Economist in November 1955.

“It is a commonplace observation that work expands so as to fill the time available for its completion. Thus, an elderly lady of leisure can spend an entire day in writing and dispatching a postcard to her niece at Bognor Regis. An hour will be spent in finding the postcard, another in hunting for spectacles, half-an-hour in a search for the address, an hour and a quarter in composition, and twenty minutes in deciding whether or not to take an umbrella when going to the pillar-box in the next street. The total effort which would occupy a busy man for three minutes all told may in this fashion leave another person prostrate after a day of doubt, anxiety and toil…..”

The first sentence sums it all up. So we need to ask ourselves…

 Isn’t it time we start looking at what gets done and how you actually get it done?

(inspired by Tim Ferriss, author of The Four Hour Work Week)

 Trip Allen-Team Egyii, Singapore

Welcome to 2009. As we light up a new year, the world will be in constant flux and the Egyii Team will continue to bring you new, revolutionary and provoking ideas for the “New World. ”

“Fear is your friend.” Tim Ferriss

Trip Allen and James Irvine, the Egyii Team, Singapore