Orphan Clients

There are probably very few of us who would consider ourselves to be an ‘orphan client’ but the reality is there are millions of orphan clients around.


What is an ‘Orphan Client’


An orphan client is someone who has previously bought or inherited a financial product through past employment or through a company or advisor who is no longer looking after their interests.



Examples:

Someone who paid into or was provided with a company pension scheme and they have left the company and it is not currently being ‘managed’.


A client who took out an ‘Insurance Product’ in one country and has now moved to another country and assumes that the product will cover them anywhere in the world.

An expat who has taken out various investment plans but has lost contact with their original advisor or moved to a jurisdiction where the advisor can no longer continue to provide advice.


Many clients who have the above products assume that because their pension provider still exists or writes to them, if they are lucky, that their account is being managed. In fact, this could not be further from the truth, as providers of financial products [Pensions, Insurance & Investments] are generally not allowed to provide advice to clients.

This means that the client without an advisor is now considered an ‘orphan client’ as they will not receive any advice. What does this mean for the client?


So if you have a pension or investment account no one is giving you advice as to whether the funds you are currently invested into are suitable for your current circumstances.

If the company who manages your pension or investment loses key staff or gets taken over no one will advise you that you need to sell out and find a more appropriate fund manager.


If you move away from where you are currently working and don’t check if your insurance policies cover you, in your new location the results could be catastrophic for individuals and families.


Change:

Everything changes in life and for insurance, pension and investment products which are geared to running for a long time it is very important these are constantly reviewed and monitored. Burying your head in the sand and assuming everything will work out will lead to at least an erosion of wealth and at worst could have serious negative consequences for your family.


Why reviewing investments is important:

If we assume that many investments or pensions will run for decades the issues concerning not reviewing are clear.


Your current fund manager may retire and the individual or replacement team may lack the same skills leading to lost performance.


Your fund manager may get taken over and the new team have different views to the previous team which may not be in line with your requirements.


The investments your advisor initially picked are unlikely to be the best investments for you in the future as the economic situation in the world changes. Regular monitoring is required to make sure your funds, are best placed to deliver constant returns in line with your risk profile.



Orphan Clients Summary:

So if you now realize you are an ‘orphan client’ and don’t have anyone helping you to make sure your investments, pensions and insurance are on track give us a call or send us an email.


Astra is regulated in Europe and Asia and has advisors all over the world who have the experience and the knowledge to help make sure your financial plans achieve their maximum potential. Unlike ‘big companies’ we don’t have answering machines but instead maintain personal relationships with clients. This includes conversations on the phone, Skype or where possible ‘one on one’ meetings.


We also update clients quarterly and are available at any time for calls if clients have questions or concerns. It is a proven fact that clients working with an advisor will achieve significantly better returns from their investments, pensions than those who just ignore them. We can also often save clients money, and in the worst-case scenario any fee we charge will be more than compensated for by better performance and service.

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the global professional association for those advising families across generations. STEP promotes education and high professional standards among their members, and seek to improve public understanding of the issues faced by families.

[https://www.step.org/]