As we progress through the largest intergenerational wealth transfer ever seen, the concept of the responsible stewardship of wealth has become ever more relevant to high-net-worth individuals (HNWIs) around the world.
The beneficiaries of this wealth transfer come from a generation that increasingly seeks to align their work and wealth management with their values and principles. Namely, the desire to address social and environmental concerns such as sustainability and social impact. STEP has been at the forefront of research and guidance for the advisors of HNWIs who wish to take a different.
Earlier this year, STEP published its Attitudes to Wealth report, based on a survey of over 900 STEP members (private client advisors) in 86 countries. The report showed growing client expectations around purpose and responsibility, and a strong desire among practitioners for tools and support.
The report highlighted key trends among clients, such as:
- 21% said their clients were taking active steps to be socially responsible in their investments;
- 43% said their clients had a desire to be socially responsible, but had not yet taken actions;
- 55% said they had noticed either ‘some’ or a ‘significant’ increase in concerns around social responsibility among clients under the age of 40 years. The equivalent figure for clients between 40 and 60 years of age was close behind at 53%.
These figures suggest an evolving and significant trend in the areas in which practitioners are expected to provide competent advice. They increasingly include questions of legacy, impact, fairness and responsibility.
The Responsible Stewardship Toolkit
In response to these developments, STEP has developed the Responsible Stewardship Toolkit, an online portal containing comprehensive resources for advisors and their clients. The Toolkit includes practical resources to help incorporate principles of responsible stewardship within family inheritance and succession planning. It offers questionnaires, case studies and draft clauses relating to trusts, wills and powers of attorney.
The Toolkit was produced by STEP members, in close collaboration with experts across several industries and sectors, including wealth management and philanthropy. The aim is to help practitioners engage more confidently with HNWIs who are concerned with more than just wealth preservation strategies.
The launch of the Toolkit is an exciting moment for STEP as it sets a new benchmark for the industry. It is intended to be a living resource. As you engage with and explore the resources currently on offer, STEP would very much welcome feedback and new contributions to continually enhance its relevance and impact. Join us to help the Toolkit become even more useful to practitioners and clients alike, for generations to come.
Find out more about the toolkit
Kishan Rana is Government Affairs Executive, STEP
