Summary of Brooke Harrington's Capital without Borders

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The history of wealth management shows that the profession has evolved from amateurs to a profession that impacts contemporary global politics and finance. However, this study shows that professionals have not replaced social trusteeship with the pursuit of profit; rather, they coexist in uneasy tension with one another.
#2 The work of wealth managers is governed by an aristocratic code based on service, loyalty, and honor. They defend large concentrations of wealth from attack by outsiders.
#3 The practice of trusteeship, which is the transfer of title to an adult male friend or relative while the original landowner is still alive, was developed to solve the problems of land seizures and taxes. It was a method of applying two forms of ownership to a single property.
#4 The system of trusts, which was in place in England, America, and other common-law countries, allowed elites to preserve their wealth by transferring it into trust. This was done by evading the laws that threatened to dissipate dynastic wealth.

Sujets

• Politique
• Finance
• Business
• Economics
• Economie gestion
• Wealth Management

Informations

• Publié par: Everest Media LLC
• Date de parution: 14 mai 2022
• Nombre de lectures: 0
• EAN13: 9798822509610
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Brooke Harrington's Capital without Borders
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6
Insights from Chapter 1

#1

The history of wealth management shows that the profession has evolved from amateurs to a profession that impacts contemporary global politics and finance. However, this study shows that professionals have not replaced social trusteeship with the pursuit of profit; rather, they coexist in uneasy tension with one another.

#2

The work of wealth managers is governed by an aristocratic code based on service, loyalty, and honor. They defend large concentrations of wealth from attack by outsiders.

#3

The practice of trusteeship, which is the transfer of title to an adult male friend or relative while the original landowner is still alive, was developed to solve the problems of land seizures and taxes. It was a method of applying two forms of ownership to a single property.

#4

The system of trusts, which was in place in England, America, and other common-law countries, allowed elites to preserve their wealth by transferring it into trust. This was done by evading the laws that threatened to dissipate dynastic wealth.

#5

The knightly ethic is still very much alive in contemporary wealth managers’ vision of themselves and their work. The norms of honor, selfless service, prudence, and loyalty, however, are often violated in practice.

#6

The laws governing fiduciary behavior have been important in the development of professional standards of conduct. Fiduciary duties are a general term describing a relationship between attorneys and clients, as well as between corporate officers and shareholders.

#7

The code of the medieval knight was described by Justice Benjamin Cardozo in 1928 as being stricter than the morals of the market place.

#8

The continued relevance of the trust for elites has perpetuated the need for trustees. However, as the impact of industrial capitalism changed the composition of wealth in the nineteenth century, a passive role was no longer tenable.

#9

During the nineteenth century, processes that had been under way in economic history since the Age of Exploration produced great merchant fortunes in Europe and North America. The basis of wealth shifted from land to capital, and trustees were granted the power to invest in stocks.

#10

The role of the trustee was governed by the logic of the gift rather than the logic of compensation. Trustees were thus economically celibate, barred from earning a fee for their efforts on behalf of settlors and beneficiaries.

#11

As the old feudal economic system was replaced by a new mode of creating wealth, trusteeship became a very different kind of job. It was now a skilled occupation undertaken for profit.

#12

Wealth management has changed over the past century, and it has become more complex. The increase in coordination among disparate industries that helps the wealthy stay that way has led to a dramatic increase in the need for professional expertise.

#13

The Society of Trust and Estate Practitioners was founded in 1991, and has since grown to include 82,000 members worldwide. It has been very active in lobbying and legislation, and has developed the Trust and Estate Practitioner certification to designate those specializing in services to wealthy clients.

#14

The TEP credential also serves to unite a global profession. The five weeklong seminars through which the credential is earned are as much a socialization process as a knowledge-delivery system.

#15

Not only do professional societies create global change, but they also define their scope of practice. This way, they can limit the practice of writing wills in the United Kingdom to STEP members and their professional peers, while still taking the fight global.

#16

Wealth management is a contemporary profession that is distinct from other occupations. It is a matter not just of capturing fees but of positioning within a hierarchy.

#17

Wealth management, while not the lowest-paying field, is also not the highest-paying. The average salaries in wealth management, which hover around the low to middle six figures, are particularly modest compared to the human capital requirements of the positions.

#18

The service model implemented by wealth managers is opposed to standardization and commodification. It is committed to individualized products and long-term relationships with clients, which distinguishes wealth management as a bit of an anachronism in an industry that is otherwise at the forefront of modernity.

#19

The fiduciary role that constrains wealth managers has its origins in the concept of the gift. However, this ethic of neutrality to the world of interests may be connected to an increasingly gendered division of labor in wealth management.

#20

The path-dependent ties between wealth management and the code of knightly service, loyalty, and self-effacement make it difficult for women to enter the profession.

#21

Many wealth managers work a low-key schedule, which is especially appealing to men. The trade-off is worth it for them because they gain a considerable amount of nonmonetary compensation in the form of low hours and a low salary.

#22

There is also the opportunity to learn new wealth-generating techniques from clients who have made their own fortunes. This is a significant change of orientation and an opportunity from which professionals can benefit without breaching their fiduciary duty.