Meeting Gavin Tarr, head of RMB Private Bank

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  Q: What services does a private bank offer and who are they suitable for?
  
  A: Private Banks offer specialist banking and wealth management solutions to high net worth individuals. In the case of RMB Private Bank we cater for clients who earn an income of at least R1.1 million per annum or have investable assets in excess of R3 million. We typically provide clients with advice and specific solutions in investment planning and management, as well as estate planning; wills; trusts and fiduciary-related services. RMB Private Bank also offers assistance with business succession planning, offshore structuring and investments. At RMB Private Bank we make it our business to fully understand your current legacy aspirations to help you build wealth creating plans that shape them.
  
  Q: How did you get involved in private banking?
  
  A: Through my career I have been involved in various aspects of Retail, Corporate, Commercial and Business Banking, where interaction with clients has been from an institutional perspective. I always aspired to work in an environment where a deeper and more meaningful relationship with the individual would be possible. My role at RMB Private Bank has enabled me to fulfil that ambition, and look to add a lot more value to the legacy that our clients leave behind for future generations.
  
  Q: Are you positive, neutral or negative about 2012 and why?
  
  A: I am positive about 2012. The South African private banking landscape has changed dramatically over the past few years and has opened up many opportunities for those who have re-evaluated their business model’s sustainability, as we have. The changing landscape of the financial sector and relevant regulation has impacted the way in which private banks engage with clients. Basel III will impact the way we do business, in particular on capital and liquidity requirements. In the face of the financial crisis, our clients’ needs are increasingly focused on liquidity, asset diversification and expectations of higher returns. The severe losses of the financial crisis gave many customers a new appreciation for risk and transparency. With these evolving customer needs, a one size fits all approach to private banking is no longer relevant and we have adapted our business model to meet these requirements
  
  Q: It sometimes feels hard to be a consistent investor and stick with a strategy – how can investors stay with the plan?
  
  A: The most important thing to remember is not to panic. Markets will shift and change but you need to have the right guidance and advice to ensure that you stick to your investment plan. Understand what the end goal is on your financial journey and keep checking back, taking stock of your position, to see how well you’re doing. Look at your own personal balance sheet every year and make sure it’s improving year-on-year. In terms of what growth you could see, gross domestic product (GDP) and consumer price index (CPI) are what you can expect in the long run – anything more is excellent. If you review your position and see that you’ve gone backwards you need to re-evaluate and be honest with yourself. This is a good time to do it as February marks the end of the tax year.
  
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