Legacy books - the elephant in the room


Legacy Books - The Elephant in the Room

Almost every business has to accept that some of their products or services will reach a “legacy” status at some point - where they are closed for new business - and the focus has moved on to other live products.  

Few organisations deal with the legacy book effectively or efficiently, which is unlikely to be a suitable outcome for clients.

Tackling a closed book is a challenge…designing an appropriate solution and assessing the impact on those affected; understanding the cost; planning the approach; and securing resources to execute on it.  The regulator will take a keen interest - existing clients will need careful management to ensure they understand their options or choices.  Even with the best preparation, no major product or proposition change is risk-free - so all too often the challenge is ducked for far too long.

To ignore the elephant in the room, and avoid taking action is, however, not a smart approach.  A problem ignored rarely resolves itself, and burying the issue raises the risk of later, greater cost; including potentially - worst case - a regulatory fine.  Dealing with the problem early has clear, immediate benefits for the business, reducing future risk and overall, gives the clients the best outcome.  

It’s time for a Spring-clean!

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By George Kirby

George is a management consultant within the Wealth Management Practice at Knadel. His consulting roles include working with large and smaller wealth managers, private banks and service and software providers.

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