7 Investment and Wealth Management
Lodewijk van Setten
- Regulation of banks — Capital markets — Investment business
This chapter considers the operative legal and regulatory concepts underlying wealth and investment management. It begins with an overview of the legal characteristics of the investment management relationship, the function of the investment manager with respect to institutional versus retail investors, and collective (pooled) portfolio management. It then describes the investment manager’s specialisation in investment strategies and investment styles, the terms and conditions of the appointment of the investment manager, and the skill and care that a manager must apply in the exercise of investment discretion. It also examines trading by the investment manager and the investment manager’s best execution duties before concluding with an analysis of the range of wealth management services offered by investment managers, such as banking (deposit and savings accounts, payment services, foreign exchange services), custody services, investment advice, brokerage and order transmission services, dealer services, and portfolio management services.