How can I best prepare for my retirement? What are the most relevant choices for my future investments, to optimize my investments? What decisions to take following an inheritance? What is the best way to reduce the amount of my taxes? Is real estate investment suited to my situation? How do I start passing on some of my heritage to my children? Is my matrimonial regime really well adapted to my situation, etc.? …? To these and many other questions related to heritage strategy, a CGP Wealth Management Consulting can intervene to guide you. Here are the points to know about this profession.
WHAT IS A PMC?
It is a consulting business whose objective is to enhance the patrimony of its clients. Not to be confused with a management company that will manage a portfolio of shares for you. A good CGP must be able, through its legal and financial expertise, to make a diagnosis of your assets and propose investment strategies that are relevant to your situation, needs and objectives. Today, CGP customers remain on average 15 years, which shows a high degree of stability in this business.
WHY CALL FOR A CGP?
“It is our responsibility to orient our clients’ long-term asset choices, which they can no longer listen to in traditional banks,” said Benoist Lombard, President of the CNCGP, the National Board of Management Boards Of assets. Responding to complex, professional and personal problems without using solutions unique to a single network (a single bank or insurance) remains the main asset of this profession.
WHERE TO FIND?
Today, almost 3,500 independent CGP firms practice in a professional capacity and are therefore not directly linked to a financial institution. They are grouped in professional organizations such as CNCGP, Compagnie des CGPI, Anacofi (National Association of Financial Advisors) or the CNCIF (National Chamber of Financial Investment Advisors).
WHO CAN BE CGP?
Although this is not an obligation, the majority of independent CGPs have the status of Financial Investment Adviser (CIF), which regulates the conditions for the marketing of financial products, which is controlled by the Autorité des Marchés Financiers (AMF). All members of the CNCGP are also CIF. The CGP can also be intermediary insurance (broker), even real estate agent. And, to have the right to offer banking products or payment services, the PMC must also be intermediary in bank operation (IOBSP).
HOW TO VERIFY THE SERIOUS OF A CGP?
Difficult a priori to know if a CGP will be very efficient. But you can take out guarantees at the first appointment by requesting a DER, an “entry document in relation” which must include all its qualifications, but also the links that they have with financial intermediaries, banks or insurance companies Which sell products. Also check that your CGP is registered at ORIAS ( www.orias.fr ), the official register of insurance intermediaries, bank and financial products. Finally, the professional must establish in writing a diagnosis of your situation and formulate recommendations that it will submit to your approval.
WHAT IS THE MINIMUM LEVEL OF HERITAGE REQUIRED TO APPLY TO A PMU?
In principle, there is no minimum required or imposed to pass the door of a PMC. However, in order to invest € 4,000 in cash, conventional banking products, such as the Livret A or ELP, do not require special personalized advice. On the other hand, for a more complex problem concerning your income, investments or remuneration modalities if you are an entrepreneur, a good CGP must offer you adapted solutions.
WHAT IS THE COST OF A CGP?
An independent PMU is first paid in fees, either on a fee or contract basis and must notify you at the first appointment. Depending on the complexity of the act, the score can range from € 500 (writing a beneficiary clause) to € 20,000 for a complex set-up. Most often, the diagnostic phase is not paying because the professional must prove his level of expertise. This is also a commercial necessity, because private banks also carry out these diagnoses free of charge for important assets. But most of all, a CGP is mainly compensated by retrocommits (70% of its turnover on average) that it receives on products sold (0.25 to 0.40% on a fund in euros of a life insurance especially).
WHAT TO DO IN CASE OF DISPUTES?
If a CGP cuts your wealth due to questionable choices or does not conform to the objectives you have defined in common (or even the level of risk you have agreed to), you will be able to react. Be aware that it has compulsory financial guarantees that it can trigger to compensate you in case of damage. In the event of disagreement, contact your trade union, such as the CNCGP, which has an arbitration board, and also appeal to the AMF mediator. If you do not get satisfaction, you will have to apply to the court that will decide the difference.