5-minute interview: Daniel F. Lindley, Northern Trust
Daniel F. Lindley, London-based Managing Director, Global Family & Private Investment Offices Group ‚Äì EMEA and APAC, Northern Trust
What is your AUM?
Northern Trust: AUC ‚Äì $4.8 trillion; AUM ‚Äì $759 billion
The Global Family & Private Investment Offices: AUC ‚Äì $270 billion; AUM ‚Äì $42 billion
As at 31/12/2012
What has been the impact of FATCA on UHNW clients?
Every financial institution across the globe will need to understand its FATCA obligations. Although a US law and regulation, foreign financial institutions will bear the largest impact of FATCA. With many families whose generations are split across the globe, we expect family offices and fund management providers will see an increase in compliance risk with FATCA and will seek assurance that their provider is fully FATCA-compliant.
Northern Trust understands the rules, regulations and market practices in the US and is well positioned to help all our clients meet their FATCA obligations ‚Äì we already identify US individuals who invest directly in funds and will continue to support our fund clients with investor due diligence and reporting.
What trends have you seen in the market in the last 12 months?
Two themes come to mind when thinking about the last 12 months ‚Äì risk management and transparency. One only has to utter the words “Eurozone‚Äù and “market turbulence‚Äù to understand why investors and financial institutions alike are increasingly looking for ways to heighten their risk-management procedures and improve transparency.
Linked to these objectives are the technologies our clients need to achieve these objectives. Ensuring data integrity is critical. Who holds it? Where does it come from? What are the risks? Is it accurate and independently verified? How is it delivered? These questions have never been more front-of-mind for investors than during the past year, and as a custodian and wealth manager, Northern Trust is in the unique position of already holding much of the data family offices require. For a family office, unbundling the investment of wealth and the administration of wealth enables our clients to receive this data in a way that supports the drive for greater transparency and control over the assets.
How do you see your business evolving in the next 12 months?
At Northern Trust, we work with our clients to help them meet their needs. Given the continuing market turbulence, and increased regulatory requirements placed on fund managers and family offices, we expect that our clients will continue to look to us to help them meet these challenges through innovative solutions, products and services.
Explain your key offerings for UHNW clients.
The Global Family and Private Investment Offices group is a boutique practice within one of the world’s most highly rated and stable financial institutions serving ultra high net worth families. Serving nearly 400 family offices, including more than 20% of the Forbes 400 Richest Americans, we are well positioned to observe and share significant trends ‚Äì in investments, governance, risk management and succession planning ‚Äì within the family office sector.
We have more than a century’s experience providing unrivaled personalised service, proactive advice and customised solutions based upon our clients’ unique needs, all of which is based on the same technology platform that meets the global asset servicing needs of some of the world’s largest institutions.
Beyond global custody and asset servicing, our global capabilities include performance reporting, investment risk analysis, foreign exchange, private and business banking, investment management and investment advisory services, onshore and offshore trust services, foundations compliance and investment management, financial planning and advisory services ‚Äì family education and governance, single stock management, family business services, real estate & agricultural services, and oil, gas & minerals management.
From where does your current revenue stream of UHNW clients derive?
Our clients originate from all over the world and are dispersed throughout the world at any one time. An operating office in London, an investment office in New York and a grant-making office in Monaco is not an uncommon set-up for our families.
As a global organisation, Northern Trust is well-placed to support the global nature of our families. Increasingly, as technology brings families virtually closer together, so, too, do our products and mobile technology solutions. Our long heritage and experience in servicing the needs of UHNW clients through any economic cycle equally offer our family clients confidence and peace of mind.
All our clients, regardless of location, are united in a common goal ‚Äì ensuring they have chosen a provider who can support them wherever they are, offer them innovative technology solutions and work closely with them to understand their unique requirements.
What further legal and regulatory environment changes do you see happening?
In the absence of a crystal ball, I suggest that financial regulation will continue to evolve, if not intensify, as governments seek to prevent the next global financial crisis. As the markets remain turbulent, we expect to see a continued demand for transparency and appropriate risk-management processes, with regulatory and legal changes to support these trends.
Are clients getting more challenging in their approach, if so, explain how this manifests?
As clients demand more access to data, driven by their increasing requirements for transparency and risk management, we continue to look for ways to innovate the delivery of this data. Slicing and dicing data in different ways and supporting through mobile technologies the needs of clients on the go remain key priorities for us.
What is your UHNW strategy?
We have a saying that if you’ve worked with one client of significant wealth, you’ve worked with one client of significant wealth! Every client is different at Northern Trust, and offering each client a distinct and fully customised service is a core part of our strategy. By combining institutional quality expertise and capabilities with world-class client service, we deliver objective, transparent, proactive and value-added advice and services.
What does Northern Trust do for its own people?
One element that attracted me to working at Northern Trust was its attitude toward ensuring its staff enjoyed a work-life balance. Not only are there training and developmental programmes to support employees as they strive to fulfil their career ambitions and goals, but there are also a myriad of support resources to help them balance these priorities within their personal lives.
Northern Trust is committed to building a culture of caring and teamwork, which engages our employees and enables them to support the communities in which we live and work. We give each of our employees a day out to help with volunteering projects in their local communities ‚Äì and get to know people from other teams. ‚ÄÉ
What does Northern Trust do for the planet?
Deeply rooted in Northern Trust’s community commitment is volunteerism. We give each employee one day out to participate in its signature volunteering programme ‚Äì Northern Trust Community Partners. Staff can read to children at local schools, help clean up a river, plant a garden or paint a classroom. More than 180,000 hours of our employees’ time last year were devoted to volunteering projects.
In line with supporting the environment, respecting ethical values and contributing to our local communities, we also donate a portion of our pre-tax profits to charity. Last year we donated US$14 million to charities and civic organisations.
What developments or initiatives have you put in place to make Northern Trust a profitable business?
It was Darwin who said, “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.‚Äù
For 124 years, our principles of service, expertise and integrity have remained at the centre of everything we do. It is these guiding principles which have underpinned our business, enabling us to navigate and weather many economic cycles. By combining our strength (Northern Trust is one of the most stable financial institutions in the world and one of only five US banks to carry the S&P A+ rating) with our people and their expertise, we can continue to provide unrivalled service to our clients. Understanding what they need and adapting our products and services for them has ‚Äì and always will be ‚Äì central to our strategy.
Who would be your dream lunch guest?
Mick Jagger ‚Äì I’m inspired by Mick’s indomitable longevity as a performer and his shrewd management of his career over five decades. I’ve been a fan ever since 12 X 5.
Where would you take a prospective uhnw for lunch?
The Wolseley ‚Äì the right combination of old-world charm and modern verve.
Your formula for success?
As Woody Allen famously observed, 80% of success is simply showing up.
Tell us three things you wish you had known when starting out.
There’s much to be said for staying with one firm over the long haul.
There’s precious little that a sense of humour can’t improve.
A third of all people will respond favourably to you, a third are indifferent and a third are downright hostile. The task is to figure out who falls into which bucket.
Three qualities or skills you must have to be successful?
Responsiveness to client needs and expectations, persistence and the occasional stroke of luck.
Have you seen our mentoring videos?
The Citywealth International Financial Centre Awards are coming up for their third year. Closing date for submissions is 12th July 2013.
Citywealth has three distinct areas to it’s business all of which focus on connecting and informing the global, private wealth management, private client intermediary and uhnw community.
The three areas we cover are: 1. information in the form of: two print magazines – one covers international financial centres and the other is a global publication on the industry with leaders list directories in both/ e-newsletter – monthly – profiles and features/ app/ website, then 2. we have two awards ceremonies and finally 3. networking clubs.
1. Information in the form of: print/ e newsletter/ app/ website
Citywealth has a monthly newsletter with uhnw features, news and lifestyle each issue. This information is backed up on the website as an archive only available to subscribers. Subscriptions cost ¬£500 + vat for multiple email addresses. It is delivered to email boxes globally.
Citywealth publishes in print and online, guides to leading individuals “leaders lists” in the wealth management industry at certain times of the year. Submission forms are required and two testimonials from peers or clients to support their entry into our recommended advisor/manager lists. These lists are checked and updated each year.
2. Awards ceremonies
Citywealth Magic Circle Awards: 16th May 2013
In their 8th year
400 + attendees
Citywealth holds an annual awards to find best advisors and managers in the global industry. Awards are judged by nominations sent in by the global industry then refined and selected by industry judges (usually ten global experts). There is also online voting. This is a chance to meet major private investors from a pool of the worlds wealthiest individuals and their advisers and managers. It is also an ideal platform to promote expensive lifestyle offerings and make charitable appeals.
Citywealth International Financial Centre Awards: January each year
In their third year
160 + attendees
Citywealth IFC Awards to find the best wealth advisors and managers in the Caribbean, Switzerland and UK Offshore. 160+ attendees.
3. Networking clubs: Citywealth Tomorrow Club: Citywealth YP and Citywealth Women in Wealth Supper Club
Citywealth Tomorrow Club
6.30-8.30pm /Four events a year/cocktails
Citywealth Tomorrow Club aims to help mentor advisers and managers in their first or second job in the industry and help them up the career ladder. It also allows members to find their own group of contacts. Maximum four individuals allowed from any one organisation. Four cocktail party networking events per year with mentor speakers. Membership fees apply. See video library https://www.citywealthmag.com/mentor-video-library
CITYWEALTH YP: A business development networking club.
6.30-8.30pm/Four events a year /cocktails
CITYWEALTH WOMEN IN WEALTH SUPPER CLUB.
6.30-8.30pm /Four events a year/supper event
Held in London each quarter we have an educational speaker, drinks and light supper to facilitate business networking. The group has 60 + members from private wealth and private client. Entry into the group is with twenty years + work experience in this industry sector only.
Citywealth also an Asian diaspora club called The Shanghai Delhi Club for UHNW +¬£100million private individuals. This is VIP invite only and wealth managers and advisors may only attend by sponsoring the club.
NEW initiatives for 2013
Citywealth has launched a mentor speaker library offering help and information for those in the industry from a mix of experts and uhnw entrepreneurs. The mentor speakers talk at our events to help prepare the upcoming generation and assist with corporate succession planning.
CITYWEALTH MEDIA INFORMATION
Citywealth was founded in 2005. Our aim is to bring together the diverse groups involved in the business of advising the UHNW and HNW community. Citywealth newsletter is subscribed to, read by and exclusively circulated to advisers and managers to the super rich.
Over 2,800 organisations receive Citywealth and the total readership is an estimated 9,500 senior executives globally from blue chip institutions and professional services firms who read Citywealth for its industry news, authoritative comment, topical features and people moves. Corporate subscriptions are ¬£500 + VAT per annum.
What type of organisation reads Citywealth?
‚Ä¢ Family Offices
‚Ä¢ Private Client Law Firms
‚Ä¢ Accountancy Firms
‚Ä¢ Fiduciary and Trust & Estate Planning Companies
‚Ä¢ Private Banks
‚Ä¢ Wealth Manager
‚Ä¢ Investment Manager
What type of individual?
Citywealth’s readership is the senior management of the organisations it goes to. For example, it goes to partners in law firms and accountancy firms, directors and above in banks, directors of trust companies. It is also read by uhnw individuals.
Citywealth’s readership is split:
‚Ä¢ UK/Channel Islands/IoM 56%
‚Ä¢ Europe 16%
‚Ä¢ Switzerland 12%
‚Ä¢ Caribbean 5%
‚Ä¢ Middle East 6%
‚Ä¢ Asia 3%
‚Ä¢ Other 2%
Contact office number (Marble Arch)
+ 44 (0) 20 7224 9565
Karen Jones, Editor
Joe Bell, Managing Director