THE private wealth management industry may have to tackle three key areas as a different post-crisis financial landscape begins to unfold: rebuilding trust and confidence, having proper risk management and corporate governance and focusing on competence.

These points were raised by Monetary Authority of Singapore executive director Ng Nam Sin in his opening address at the Shorex Wealth Management Forum in the Suntec convention centre on Tuesday morning.

He said: 'One potential driver of change is the shift in investor mindset.' Mr Ng added that investors are adopting a 'more holistic view' on their wealth protection needs, and are asking for 'even more transparency' on account management.

'These suggest the renewed emphasis on building trust, enhancing transparency and proper risk management and market conduct,' he said.

Thus, financial bodies will have to review the way in which they deal with clients to 'provide real value and restore confidence'.

For instance, they must ensure that investment advice dished out is 'fair, objective and in the best interest of clients'.

Having pay structures that rely mainly on commissions or are biased towards recommending specific products is 'untenable', he said, adding: 'It will inevitably elicit a culture where the institution and its representatives are more concerned about their own revenue interests, as opposed to having clients' interests at heart.'

The industry must also progress to one with more emphasis on the safekeeping and handling of client funds, especially in the wake of the Madoff and Stanford frauds. Thus, financial institutions must have proper systems and processes to safeguard client's interests and keep abreast of new regulations.

Senior management must recognise their role in 'setting the right tone at the top', instilling an 'ethics-based' corporate culture built on integrity, said Mr Ng.

Financial institutitions must also focus on 'continuous skill upgrading', added Mr Ng, as the need for a high level of competence has become 'more acute' given the industry's current challenges.