FNB’s global powerhouse based on a small island

FNB’s Fiduciary and Global Solutions business, based in Guernsey, is going from strength to strength, with CEO Aneesa Razack leading the way towards an estate planning and global investment powerhouse that serves around 240,000 customers.

In an industry often dominated by high-profile wealth management firms, FNB has quietly been transforming itself into a powerful player in financial planning and wealth management.

FNB Fiduciary and Global Solutions fall under its Private Wealth business, which focuses on estate planning and wealth management, particularly for investors interested in offshore options.

One feature that sets FNB’s business apart is offering services like estate planning to all customers, regardless of wealth, and making wealth management more accessible.

Razack told Daily Investor that a major challenge has been overcoming the perception that estate planning and wealth management are exclusive to the ultra-wealthy. 

She explained that many people believe estate planning is only for those with significant assets, and the vast majority view it as irrelevant to their lives. 

This myth has discouraged everyday South Africans from accessing services that could safeguard their family’s financial future.

Razack said this puts vulnerable family members and other dependents at severe risk should their main breadwinner pass without having properly planned the transfer of their wealth.

Therefore, one of her biggest goals in running the business has been to debunk this notion by rethinking how wealth management is communicated to clients. 

The approach begins with simplifying complex financial concepts and educating clients in a relatable way. 

“We’re focused on demystifying wealth management by offering masterclasses and educational tools,” an FNB executive shared. 

“Instead of industry jargon, we help our clients understand what estate planning really means and how it applies to them, no matter their financial status.”

This approach has helped the business to attract just under 240,000 customers – with the possibility of more to come.

Razack said the business has a sizeable attractable market, which sets it up well for future growth.

Beyond estate planning, FNB’s Fiduciary and Global Solutions business has also adopted an innovative approach to wealth management, aiming to make financial growth accessible to more people. 

They focus on what Razack describes as “goal-based outcomes”, offering a suite of products tailored to client’s individual financial goals, whether for short-term savings or long-term investments. 

“Our solutions aren’t just focused on high-net-worth clients. Instead, we help people with financial goals of all sizes by identifying what they need to reach them,” she said.

The business has specific expertise in global investments and wealth management, and it is strategically located in Guernsey for this exact reason.

Razack explained that Guernsey, one of the Channel Islands, is well-known as a tax haven, an attractive destination for offshore investments and an ideal location for an estate planning business.

This is because Guernsey has no capital gains tax, inheritance tax, or estate duty, and the corporate tax rate is effectively 0% for many types of companies.

Guernsey also has an established a regulatory framework that is stringent enough to ensure compliance, with strict money laundering policies, and protection but flexible enough to attract a wide range of financial services. 

Razack said this allows the business to root its solutions in a strategic asset allocation framework that combines geographic, multi-asset, and active-passive diversification strategies, helping clients achieve robust returns that meet or exceed inflation-adjusted goals.

She said this strategy has paid off handsomely for FNB clients. “Our solutions have performed very well over recent years, often landing in the top quartile.”

However, Razack said this success has not come without its challenges, as, like many complex financial businesses, hers has struggled with bureaucracy and red tape.

Therefore, a critical factor in FNB’s success is its collaboration with the South African Department of Justice to streamline estate administration processes. 

Estate planning, especially for those managing smaller estates, can be a long and often challenging ordeal. 

Therefore, FNB Fiduciary and Global Solutions, through its connection to the Banking Association South Africa has stepped up as a corporate partner to support the digitisation of the estate administration process, aiming to speed up the handling of estates and reduce administrative burdens for grieving families.

“This partnership aligns with our core purpose of helping South Africans,” Razack said. 

“By collaborating with the Department of Justice, we’re able to speed up processes for vulnerable clients and bring some relief to them during difficult times.”

Looking forward, Razack said her main goal with the business was to see more clients turn to global solutions and consider FNB’s Fiduciary and Global Solutions business, their trusted partner in this process.