Simon Ellis, global head of client segments at HSBC Global Asset Management, told delegates that life companies have a “great opportunity” to move away “from the perception that was there 15 years ago that it is all about tax avoidance”.
“That reputation still hangs on” and the industry needs to make “a determined move” that says “we will clean up the industry ourselves if we can”, Ellis said.
Ellis was responding to a question from the audience about what asset managers would like to see in or improve about their relationships with cross border life companies.
Clean money
Fellow panellist Campbell Fleming from Aberdeen Standard Investments added: “I think one area we could all get right is bloody money laundering.”
He clarified to the chuckling audience that he meant “making sure we prevent it and we’re operating under the right standards because it is a vexatious thing for clients”.
Better communication
Life companies failing to talk internally across different businesses and jurisdictions was an issue for Jupiter Asset Management’s global head of distribution, Nick Ring.
“We find that we are having a conversation with one part of the business but it would be more scalable if they had managed to organise themselves better in how they engage with us.
“They need to look at their business more holistically, rather than in silos. This, and know-your-client, which is [an industry-wide] issue, could improve.”
Holy grail
In response to an earlier question about working with other parts of the industry, Ellis highlighted one opportunity that could come from asset managers working with life companies.
“The opportunity around DC pensions is the holy grail for the asset management industry. I think insurance companies have a very special, if not unique, opportunity to be the record keepers of choice for global and regional employers.
“That strikes me as an area where we should be working closer together. We need to see how we can get the value chain to work in totem, rather than fighting over our share of it, because [otherwise] we will lose.”
