Wealth management: define the right commission
Wealth management delegates investment decisions within agreed limits to a professional or institution. This requires more than choosing a provider’s name. Understand the assets covered, custody arrangements, reporting and total costs.
Agree decision authority in writing
The mandate should identify the assets, decisions and limits covered. General consent does not replace understandable terms. Personal strategy and suitability are assessed later; the quote enquiry does not establish a risk profile.
Separate management, advice and custody
With advice, you decide whether to follow recommendations. Under management, the provider implements the agreed framework. Custody and authority over the account are separate questions that must remain clear in the agreement.
| Role | What to clarify |
|---|---|
| Manager | Which decisions are permitted by the mandate? |
| Custodian | Where are assets held and how do you receive statements? |
| Client | How are changes, questions and termination handled? |
Check the actual activity and status
Have the appropriate authorisation and oversight status explained and verify it before commissioning. Registration for another activity does not replace this. Supervision does not guarantee investment value or automatic compensation for losses.
Agree reports and meetings
Clarify reporting frequency and content: holdings, transactions, costs and performance. Ask for a clear comparison basis and how personal changes are handled. Reports should distinguish deposits, withdrawals and investment results.
Total costs beyond one percentage
Management charges may include minimum fees and different services. Clarify custody, transactions, currencies and products too. Ask about third-party remuneration and any performance fees. Compare offers on the same cost basis and service scope.
| Cost layer | Specify in the quote |
|---|---|
| Management | Calculation basis, minimum and service |
| Implementation | Custody, orders, currencies and external charges |
| Products | Costs, remuneration and possible conflicts |
Prepare an existing mandate and provider change
When changing provider, review termination, custody transfer and existing holdings. Transfer, sale and reinvestment are different steps with possible charges. Agree responsibilities and sequence before ending an existing commission.
Describe the commission without confidential holdings
State whether you want new management, a provider change or a mandate review. The number of custody accounts helps define work. Asset amounts, credentials and personal suitability details belong in the later protected process.
Frequently asked questions
Do I still decide on every purchase?
Decisions are delegated within agreed limits. If you want to judge every recommendation yourself, advice is a different commission.
Does professional management guarantee safety?
No. Investments can lose value. Scope, risks and costs must be explained.
Is there a general minimum asset amount?
No, offering terms vary. Clarify the provider’s terms later; no general minimum is asserted here.
Can several custody accounts be included?
Agree this with the provider. Give the exact number without account numbers or holdings in the enquiry.
Does an all-in fee cover everything?
Check actual inclusions and exclusions. Products, external charges or additional services may have separate terms.
Must I sell holdings when changing provider?
Not automatically. Check transferability, the new mandate and costs beforehand.
