Wealth managers who are trying to regain the trust of their investor clients will have to be more transparent.  Profits for wealth managers nosedived in the wake of unprecedented financial turmoil, investment scandals and the world wide wealth decline, according to a new report published by PricewaterhouseCoopers LLP. Damage has been done to the critical element of trust at the heart of the relationship between affluent clients and wealth managers.

The report, "A New Era: Redefining The Way To Deliver Trusted Advice," highlights significant changes affecting wealth managers, how they are responding with changes in their business and what senior private bankers and wealth managers see happening in the industry in the future.

High net worth investors have much higher expectations and are now demanding more from their wealth managers, including peace of mind. More than half (53 percent) of the private banking clients surveyed by PricewaterhouseCoopers say that their primary source of financial advice is now their own research capabilities and independent knowledge, an indication of their skepticism about the quality of the advice they have been getting.

"The financial crisis and the breach of trust by some managers has had a profound impact on investor confidence. While the client and asset attrition phase of the crisis will eventually pass, the industry will be very different in the future. The DNA of world wealth has changed in terms of what clients want, demand and expect from wealth managers and service providers," said John Garvey, U.S. leader, financial services advisory practice, PricewaterhouseCoopers.

Which firms and managers will affluent investors seek out? The winners will be the wealth managers who can provide investors with sound performance coupled with extraordinary levels of insight and transparency around their assets, investment strategies and products, adds Garvey.

According to the PWC report, high net worth investors now want much more transparent product offerings, product suitability, robust due diligence and real-time, customized reporting with proactive risk/reward analysis versus a point-in-time snapshot of their wealth and holdings. They also want more information about how their holdings are being transacted, processed and managed. They seek answers about the integrity surrounding their wealth and personal data, as well as the soundness of the institutions and processing counterparties who serve them.