The 48 page report’s conclusions are broadly optimistic on the short and medium term prospects for the High Net Worth sector in the UK, despite the harsh economic climate. The report is also broadly optimistic on the prospects for the UK’s wealth management industry which has been catalysed into changing its traditional wealth management business model by the difficult business environment and forthcoming regulatory changes.

MDRC’s 2011 planning scenarios suggest that the UK’s HNW sector is set for 3 or 4 years of modest growth. Although affluent and HNW growth will be at rates above the growth in the UK economy as a whole, the sector will not return to the pre-2008 rates of growth during this period.

MDRC also expects to see the continuing evolution of the HNW individual; increasingly confident, financially aware and wary of opaque products but becoming less risk averse than in recent years - unless there is another correction in asset values.

However, these individuals are also time constrained and keen to protect their lifestyles. MDRC sees a continuation of the recent shift in the financial priorities of the “average” HNW individual – prepared to consume assets to ensure a comfortable lifestyle (particularly in retirement) and less concerned about passing wealth to succeeding generations.

The report also sees a continuing interest in the concept of wealth management particularly from wealthy women, but the products and services on offer from private banks and private client wealth managers still fail to attract most of the target market.