SEI Research Reveals Only 1 in 3 Private Clients Believe Independence in a Wealth Industry Relationship is Achievable

London, April 26 /PRNewswire-FirstCall/ -- SEI (Nasdaq: SEIC) today released the second in their series of special interest papers, which looks at the changing relationship between private clients and their wealth managers.

The paper, entitled 'Independence: The New Gold Standard?', is the result of a series of in-depth interviews carried out in conjunction with the Scorpio Partnership, which compare the views of 25 private clients and 25 wealth management firms. Findings highlight just how important independence is to both, and more specifically, what it means in the context of a financial advisory relationship.

Interestingly, the study revealed that although 73 percent of private clients believe independence is of high or medium importance, only 32 percent feel it is achievable in a wealth advisory relationship. This minority also shared the common view of independence being more of a hope than an expectation. The remaining 68 percent believe that it is not achievable at all or through a single adviser.

Joseph P. Ujobai, Executive Vice President, SEI's Private Banks segment, comments:

"Whilst it is clear from these survey results that both private clients and wealth managers put independence high on the agenda, their assumptions on how this is attained and the likelihood of achieving full independence are quite different. Interestingly, when clients were asked to compare financial services with other industries, the majority did not regard independence as a principle to which any profession can consistently adhere.

"What this seems to tell us, very simply, is that clients recognise that it is important to access the best investment solutions for their circumstances, but most view that this kind of independence is not so simple for wealth advisers -- or anyone -- to deliver.

"Though previously the issues of independence and fees have been closely intertwined, the FSA is looking to introduce a clear separation between independence and adviser charging.   Interestingly, our findings show that as yet advice-based fees are rarely mentioned as a way to demonstrate to clients that advisers are acting independently. Furthermore, private clients do not like paying fees, so how do you make a fully fee-based model look more appealing than a commission-based or -offset model, where costs are not as transparent?

"Against a backdrop of major change, and with the challenges RDR pose, many wealth managers may be questioning if it will be practical in the short term to remain independent within the proposed regulatory framework, and whether the costs of achieving independence will really be worth it? We think that this research paper will be of great value to wealth managers making changes to their business, and to those seeking to understand how best to demonstrate independence to their clients."

For the full version of the paper 'Independence: The New Gold Standard?' please go to www.seic.com/independence or contact Andrew Catcheside, SEI, on [email protected] or +44-(0)207-297-6416.

About SEI's Global Wealth Services

SEI's Global Wealth Services is an outsourcing solution for Wealth Managers encompassing wealth processing technology and wealth management programs, coupled with business process expertise. The integrated offering aims to provide wealth management organizations the infrastructure, operations and administrative support necessary to capitalize on their strategic objectives in a constantly shifting market.

At the heart of the solution lies the Global Wealth Platform (GWP), launched three years ago it supports trading through 85 stock exchanges in 43 countries, transacting in 28 currencies using straight through processing.

About SEI's Private Banks Segment

SEI's Private Banks business segment delivers investment management and wealth processing services through its Global Wealth Services solution to private banks and wealth management organizations. SEI enables wealth managers to meet the rapidly evolving business and investment needs of their clients by helping them grow and protect revenue, minimize cost and allocate capital effectively, enable risk management and help manage transformation. SEI's solutions are used by over 290 clients in 9 countries. For more information, visit http://www.seic.com/pwi.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of December 31, 2009, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $392 billion in mutual fund and pooled assets and manages $158 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com.

This information is issued and approved by SEI Investments (Europe) Limited, 4th Floor, Time & Life Building, 1 Bruton Street, London W1J 6TL which is authorized and regulated by the Financial Services Authority. This material is not directed to any persons where (by reason of that person's nationality, residence or otherwise) the publication or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not rely on this information in any respect whatsoever. No offer of any security is made hereby. Recipients of this information who intend to apply for shares in any SEI Fund are reminded that any such application may be made solely on the basis of the information contained in the Prospectus.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=91692

SOURCE SEI