IBBC CAPITAL ACADEMY / 2027
Choose a wealth-service model by needs and conflicts
Independent IBBC Capital draft content for self-study. Not affiliated with or endorsed by CFA Institute. New lessons await subject-matter review. No CFA designation or official PSM credit is awarded.
Learning goals
- Diagnose the case using the stated constraints and quantitative evidence.
- Defend a conditional decision and identify what further evidence could reverse it.
Draft · approximately 65 minutes, excluding further revision.
Decision case · fictional facts
A family has 20 m investable assets and a privately held company. It compares adviser A at 0.60% AUM plus product costs with adviser B at 80,000 fixed planning fee plus execution costs. Custody, tax counsel and legal work are separate. The family lives across two jurisdictions.
Service scope before segmentation labels
Private banks, independent advisers, multi-family offices and single-family offices differ in scale, coordination, product access and cost. Segment by complexity, liquidity, governance and required service rather than wealth alone. A family office may coordinate specialists without itself supplying every regulated service; identify who is actually responsible for each decision.
Make total economics and conflicts visible
AUM, retainer, hourly, commission and performance fees create different incentives. Product fees, custody, trading, tax and referral payments can add to the headline charge. Compare scope and net outcomes, not fee alone. A low fixed fee may omit execution; an AUM fee may reward gathering assets or retaining debt-financed investments.
Coordinate expertise within actual permissions
Use licensed legal, tax, insurance and investment specialists where appropriate. Verify registration, disciplinary records, scope, privacy, anti-money-laundering obligations and cross-border restrictions under applicable rules. Residency or citizenship alone does not establish tax treatment everywhere. Document consent, confidentiality, decision authority and escalation; this educational case does not establish IBBC Capital service licensing.
Formula and assumptions
AUM fee=assets×fee rate;all-in cost=headline+product+custody+execution+other applicable costs
Compare with the model response after drafting
- A headline fee=20 m× 0.006=120,000; B fixed 80,000, a 40,000 difference before other costs.
- Request a comparable all-in fee and responsibility schedule; choose only after cross-border competence, custody and conflicts are verified.
Errors to catch
- Choosing solely on advertised fee.
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Original knowledge check
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Sources and coverage status
These original lessons are drafts. Public outlines are used to check scope; the official learning-outcome text and proprietary question banks are not reproduced here. Follow the source for exam-year requirements and updates.