Investment Advisory

Investment advisory consists of providing personalized recommendations on financial instruments or asset allocation strategies, based on a client’s profile, objectives, and constraints. In an environment characterized by market volatility, changing interest rates, and inflation, it is an essential lever for making informed decisions aligned with a long-term wealth strategy.
In private banking, investment advice is part of a long-term relationship, built on financial expertise, a comprehensive understanding of the client’s wealth, and ongoing portfolio monitoring.

Definition of Investment Advisory

Investment advisory refers to recommending financial solutions tailored to a client’s specific situation, whether an individual, a business leader, or a wealthy family. It may cover direct securities, mutual funds, ETFs, structured products, or unlisted assets, and may also include SRI/ESG strategies.
This advisory process takes into account financial knowledge, risk profile, investment horizon, wealth objectives, as well as tax, legal, and liquidity constraints specific to each investor.

The Regulatory Framework for Investment Advisory in France

In France, investment advisory is strictly governed by the MiFID II directive, which aims to strengthen investor protection and financial market transparency. This framework notably requires:

• an assessment of suitability between the proposed recommendations and the client’s profile,
• clear information on costs, risks, and product characteristics,
• product governance rules,
• and formalized traceability of recommendations.

This regulatory framework forms a key foundation of trust between the client and the advisor.

The Investment Advisory Process

Investment advisory is based on the following steps:

• A detailed understanding of the client’s situation (family, professional, financial, budget, objectives, preferences, experience, etc.)
• The definition of a medium- to long-term strategic asset allocation
• The development of a tactical allocation that reflects macroeconomic trends and incorporates market views
• Finally, the selection of products and services

The Role of Investment Advisory in Private Banking

In private banking, investment advisory follows a structured and professional approach, including:

• Internal or external investment research,
• Conviction lists and selected investment universes,
• In-depth due diligence on funds and investment vehicles,
• Regular portfolio monitoring (reports, alerts, tactical reviews).

Advice is adjusted according to the macroeconomic environment, market developments, interest rates, and inflation.

Investment Advisory Asset Classes

Investment advice may cover a wide range of solutions integrated within various wealth wrappers:
 

The selection of investment products takes into account the investment universe of each chosen wrapper (life insurance, PEA, securities account) as well as the investment horizon.