Ocorian has outlined several steps that wealth managers and financial advisers can take to ensure they avoid “costly” disputes with their high-net-worth clients.

The firm noted that serving high-net-worth individuals (HNWI) can be both rewarding and challenging, and a strong client relationship was essential to prevent potential disagreements.

Ocorian executive director for private clients, Paul Butel, first highlighted that strong communication builds trust in client relationships, with these relationships hinging on open and transparent communication.

He stated that regular interaction fosters trust and understanding, while clearly outlining terms of service, expectations and responsibilities from the outset helps prevent misunderstandings.

“Keeping clients informed about project progress and potential changes demonstrates transparency and reduces uncertainty,” Butel said.

“Additionally, actively listening to client concerns and providing timely responses is crucial for building strong and lasting relationships.”

Tailoring service to high-net-worth clients was also highlighted as key, requiring a deep understanding of their unique needs and preferences.

Personalising service was “paramount”, as HNWIs often expect a high level of attention, alongside respecting privacy and ensuring all communications were handled discreetly.

Butel also urged wealth managers and financial advisers to ensure a consistent high-quality service through meticulous attention to detail and proactive problem solving.

“Anticipating potential issues and addressing them proactively helps prevent problems from escalating,” he continued.

“Flexibility in adapting your output to meet the client's preferences, such as providing action plans, regular reporting, or varying levels of detail, is crucial for delivering personalised and effective service.”

Managing client expectations and delivering results were also highlighted as key to avoiding disputes, with Butel urging wealth managers to avoid overpromising and being transparent about what is achievable.

Butel also highlighted the importance of effective dispute resolution for client satisfaction, as well as maintaining professional boundaries in client relationships, and cultural sensitivity in serving high-net-worth clients.

Finally, he emphasised the power of trusted networks in serving HNWIs: “Building relationships with other professionals they trust can enhance your ability to manage expectation and resolve issues effectively," he said.

“Collaborating with other experts, such as legal and financial professionals, allows you to offer a comprehensive service that reduces the risk of disputes.

“By fostering a collaborative environment and demonstrating the value of the wider team involved in serving the client, you can strengthen your relationship and build trust.”

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