Appunti Banking strategy & wealth management

LIENT INANCIAL LAN

The plan is built using a balance sheet approach, matching:

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Dedicated Asset tied to specific liabilities

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Free Asset available for investments

Additionally, income and cost data are used to calculate savings capacity, which is essential to

measure financial flexibility and planning potential.

A financial plan allows to fit the investment solution to the client’s asset situation covering also

determine client’s risk capacity.

the liabilities and to

STEP 3 - R & S P Risk = risk capacity + risk tolerance (psychological)

ISK ERVICE ROFILE

The client’s risk profile is a combination of:

.. Risk Capacity (Objective) Risk Tolerance (Subjective)

Client’s ability to bear risk based on Client’s willingness to bear risk based

Definition financial facts on behaviours

Balance sheet, savings, asset mix, Experience, emotions, attitude

Sources time horizon toward volatility

Assessment Quantitative metrics and ratios Questionnaire (qualitative)

Output Scored: Low – High Scored: Low – High

Final Risk Profile = MIN (capacity; tolerance)

Service Profile adds a behavioural layer and definiens advisory intensity:

→ Discretionary/Advisory Mandates

o Delegator → Execution only / Trading Access

o Self-directed

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Regulatory Contest Key Frameworks:

• EU (MiFID II, Art. 25)

• US (FINRA Rule 2111)

• Switzerland (FIDLEG, Art. 12)

These frameworks stress the importance of suitability, client knowledge, and goal alignment.

After the 2008 crisis, stricter rules were introduced to better protect investors and enforce

transparency.

1° Risk Capacity Quantification – Key Criteria

Indicator What it Measures Assigned Weight

Free assets ratio Free assets / Financial assets 1

Pension coverage Annuity absorption rate 1

Annual loss comp. rate Savings / Free assets 1

Capital erosion duration Free assets / Annual spending 1

Time horizon Time without consuming free assets 3

Dedicated assets shortage (Dedicated – Liabilities) / Free assets 3

→ Total score (weighted) defines: Low, Moderate, Medium, Enhanced, High

2° Risk Tolerance – Key Criteria

Criterion Description Assigned Weight

Experience Years of exposure to risky assets 1

Market engagement Active following of financial news/markets 1

Volatility acceptance Willingness to accept fluctuations 1

Risk awareness Understanding of investment risk 1

Risk comfort Emotional reaction to portfolio losses 1

→ Total score defines: Low to High tolerance Per calcolare sia weighted

3° Final Risk Profile Logic avg. di risk capacity che risk

Risk Capacity Risk Tolerance Final Risk Profile tolerance (per ottenere il loro

➝

Medium Low ∑

Low (lower prevails) livello) devi fare ∑ ℎ

! Always take the more conservative score

Questions

1. How many years of experience in investments?

2. Are you ready to bear fluctuations to have long term returns (equity)?

3. How frequently do you follow up with financial markets?

4. What proportion of assets would you invest in an asset with 7% return and 20% STD?

5. How would you react if PF value falls about 30%

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LESSON VII ADVISORY PROCESS PART 2 & WEALTH

MANAGEMENT MODEL

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IMP See advisory process case (Sandra)

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STEP 4 I S

NVESTMENT TRATEGY

The investment strategy within the advisory process includes two key components:

Strategic Asset Allocation (SAA) and Tactical Asset Allocation (TAA).

1. SAA defines the client's long-term asset mix based on their objectives and risk profile. It

ensures diversification and consistency over time. Examples: As equity weight increases, both

risk and expected return rise.

2. TAA allows for short-term portfolio adjustments in response to market conditions (e.g.,

regional trends, currencies). It operates within predefined bands around the SAA and helps

enhance flexibility without altering the long-term plan.

Together, SAA and TAA balance long-term direction with tactical responsiveness.

PASSIVE VS ACTIVE Investment The trend is relatively

passive investing

A popular WM structure combining both SAA and TAA is Core-Satellite Strategy:

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Core (50–70% of tot portfolio) passively investment, replicate SSA

• →

Satellite flexible allocation (TAA, active strategies) for additional return

Benefits for Client

- Clear investment objective

- Flexibility for market dynamics

Investment discipline → avoid overtrading, reduce risk and cost

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Implementation & Control

Once SAA/TAA are defined, the RM ensures proper execution and monitoring:

• Reports Tracks: asset class breakdown, SAA adherence, VaR, performance

• Adjustments: Rebalancing, TAA, risk profile review

The goal is to maintain alignment with the client’s evolving needs and strategy

LESSON VII - SUCCESSION PLANNING & WEALTH

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STRUCTURING PART 1

Wealth Governance and Advisory Topics

Area Tools / Services Included

Will, Trust, Insurance Policies, Succession Contract, Private Label

Estate Planning Funds, Family Pacts

Wealth Structuring Relocation, Holding structures, Consolidation of assets

Family Business Family Constitution, Family Council, Family Office

Advisory

Social & Sustainable Impact investing, Philanthropy, Foundations

Advisor Role in Succession Planning

The Trusted Advisor plays a strategic and coordinating role in succession. They must understand

the legal framework, recommend the most suitable solution for the client, and oversee the

process through to implementation.

While they guide and structure the plan, legal and tax execution is carried out by specialists.

Key Challenges in Wealth Transfer

• Asset Consolidation & Structuring: inventory, protect and organize assets for smooth

intergenerational transfer.

• Immaterial Values (Socio-Emotional Wealth):

o Family identity, legacy, values, emotional bonds, reputation

o Often prioritized over financial gains by family business owners

Goal Tools

Ownership Consolidation Family Office, Holding, Trust, Contracts

Value Preservation Family Constitution, Governance System

Legacy Continuity Impact Investing, Family Fund Strategy, Insurance

balance between financial and socio-emotional wealth across generations

The goal:

The FIBER model (Socio-Emotional Wealth Dimensions)

The FIBER model highlights the non-financial dimensions that often shape family decisions

across generations. Based on a survey by Credit Suisse, it shows how values like family

identity, emotional attachment, legacy, and continuity frequently take precedence over pure

financial goals, especially in family businesses.

Family Governance

Family governance refers to a structured system that manages relationships, decision-making,

and access to ownership within a family business. It's often formalized through a Family

Constitution, which defines long-term vision, values, and rules for joining or exiting the business

— helping reduce conflict and support strategic unity.

SUCCESSION LEGAL INSTRUMENTS

Instrument Notes

Will Defines heirs, triggers probate; subject to reserved share rules

Succession Contract More flexibility, also subject to reserved share

Insurance Policy Non-probate, pays directly to beneficiaries

Trust Often non-probate, good for privacy and asset protection

Type of Transfer:

• Probate Transfer: Legal and public (via court), slower process (e.g., 6–12 weeks in CH)

• Non-probate Transfer: Direct transfer (e.g., via trust or insurance), faster and private

TAX IMPLICATIONS OF SUCCESSION

Tax Factor Examples

Fiscal Jurisdiction Where is the decedent, heir, and property located?

Degree of Relationship Affects exemptions & tax rates

Asset Class & Value E.g., real estate vs financial assets

International Treaties Double taxation agreements (DTA) may apply

TRUSTS IN SUCCESSION PLANNING

Trusts are versatile tools widely used in succession planning. They allow families to protect

vulnerable heirs, manage assets in a unified way, and pursue philanthropic goals. Trusts are

also preferred to avoid probate, ensure privacy, and define clear rules for asset distribution.

The trustee plays a key role in this structure, managing the assets with prudence, impartiality,

and always act in the beneficiaries’

and transparency. They must avoid conflicts of interest

best interests.

→ If they fail to meet these duties, they may be held liable for losses or improper actions.

Trusts, especially in Anglo-Saxon systems, separate legal ownership (held by the trustee) from

beneficial ownership (held by the beneficiary). The structure involves four key roles:

the settlor (who creates the trust),

- the trustee (who manages it),

- the beneficiary (who receives the benefits),

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and possibly a protector (who supervises the trustee).

Trusts can be created by will (testamentary) or while alive (living), and may be revocable or

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irrevocable, depending on the level of control retained by the settlor. TYPE OF TRUST

Switzerland recognizes trusts via the Hague Convention, but applies the foreign law chosen by

no domestic trust law. In Italy, trusts are also recognized, and taxation

the settlor—there’s

depends on the trust’s terms.

→ For example, Italian law blocks creditors after one year, and income/gift taxes apply.

Case Study: Rupert Murdoch Trust Dispute

Murdoch set up a family trust to pass company control to his children, but later tried to change it

in favor of one son.

The Nevada court ruled the trust was irrevocable, preventing the change.

Key lessons: always consider future changes, know if the trust is revocable, and explore

alternatives like shareholder agreements

LESSON VIII - SUCCESSION PLANNING & WEALTH

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STRUCTURING PART 2

UNIT-LINKED INSURANCE POLICIES

A Unit-Linked policy is a hybrid financial product that combines life insurance coverage with

investment in financial markets. The client (policyholder) pays premiums that are invested in

selected funds, and the policy’s value depends on the market performance of those investments.

Upon death or redemption, the policy pays out to designated beneficiaries.

Key Features:

• Policyholder defines beneficiaries (can

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change them anytime) the client

• Premiums are invested in internal or

external funds.

• Performance-based benefits; risk borne

by policyholder.

• Tax-efficient and flexible for succession

planning.

• Can be pledged as collateral

Investment Structures Inside Policies

Within a Unit-Linked insurance policy, the premiums paid by the client are invested in funds,

which can be either internal (managed by the insurance company) or external (third-party funds).

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