11/7/2023 0 Comments Possible finance competitorsResearch has shown that over the long term, passive funds beat most actively-managed funds. People also want direct access to markets, which means funds by active managers are waning in popularity while cheaper, passive products like exchange-traded funds are increasing, Mr Mehra said. Advisers are also required to provide a benefit illustration to customers before a policy commences and provide a performance statement every six months. Under the changes, the Insurance Authority capped the commission payable on a policy over its entire lifespan, while financial advisers must include a mandatory 30-day "free-look" period that allows customers to cancel any investment plans for free within the first month of their inception. Recent regulatory changes in the UAE are expected to clamp down on the mis-selling of financial products. Fund managers can no longer get away by charging a 2 per cent fee,” he said.Īlmost $68 trillion will change hands between various generations over the next 25 years, according to research firm Cerulli Associates. “The day of financial intermediaries making a lot of money is over as margins continue to compress. Banks and FinTechs are likely to be collaborators rather than outright competitors as legacy institutions look to embrace new business models, panel members discussing the future of wealth management in the region said.įinTechs are already partners to brick-and-mortar banks, who are quickly embracing new ways of doing business, Deepak Mehra, head of investments at Commercial Bank of Dubai, said.Īlthough traditional banks have advantages such as a sizeable legacy customer base and the availability of huge capital, they cannot afford to maintain the status quo and must adapt to changing customer demographics as well as a looming generational wealth transfer, Mr Mehra told the online panel discussion organised by AIM Summit and Saxo Bank on Monday.
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