Trust established in 100 years – decided upon in 15 seconds

Nov 24 2008 by Andrew Hebden, The Journal

DAVID Dale, head of wealth management at Dickinson Dees, tells Andrew Hebden he loves nothing more than solving a tricky problem – be it in his workshop or on the stock markets.

IF the challenge of managing your own investments in the current financial climate has been keeping you awake at night, spare a thought for David Dale.

The 46-year-old has seen a lot during his two decades in the profession. But nothing has prepared him for this.

“We have information [at the firm] going back to 1900 and it is fascinating to look back at the impact of world events, be they changes in governments or wars,” he says. “But what we have never seen before is what’s happening in the banking sector and the world markets ... all at the same time.”

He could be forgiven for looking exhausted. After all, with the stock markets in a state of unprecedented volatility, the late-night phone calls from worried clients must be stacking up.

In fact, he looks full of energy. I soon learn that David is not a man who needs a huge amount of sleep; if he is not up at 4.30am busy on his latest project in his workshop at his Northumberland home, then he can usually be found out walking his dogs.

And he says that, despite the images of plunging markets, his clients are usually able to keep calm.

“I have not seen events come together in this way before and I can fully understand why clients are concerned,” he says.

“But generally people are not running in to our offices and shouting: ‘sell everything’. They are generally resigned to the fact that this is a global issue and they just have to ride this one out.”

Not that it is easy at the moment, and he admits it can be difficult to persuade clients to take a long-term view.

“We know that the markets will correct themselves,” he says. “And there are some long-term opportunities for growth at the moment if people don’t need to access their portfolios.”

But managing other people’s money does bring with it a huge burden of responsibility, a fact not lost on David, who has been in his current role at the Newcastle law firm since 1999.

He describes his role as “an honoured position”.

“If you have corporate clients, it’s always easy to sign the corporate cheque, but with personal clients, everything that you do directly affects these individuals. If you get it right, then you are looking after them and their family.”

Dickinson Dees has a long history of managing the finances of the North East’s wealthiest people, although the nature of the client base has changed significantly over the course of history.

Where once it was all about landowners and industrialists, today the focus tends to be on homegrown entrepreneurs and Lottery millionaires.

David says the latter often count among his most interesting clients, although he’s so far avoided any of the nightmare cases that tend to make it into the newspapers.

He says the key to helping people who find their bank accounts several million pounds better off overnight is about “managing expectations”.

“We try to slowly educate the family about what may be required; it is a lifestyle change that, if not managed correctly, can go very wrong,” he says.

In some cases, he advises individuals to keep the size of their jackpot a secret – even from their closest family.

“The best advice I can give is to chill out for six months,” he says. “And don’t give it all away and don’t promise too much!”

He says: “I am like a Mystic Meg figure – I plot life five years hence for them and their family. It is like becoming an adopted member of the family because you know so much information.

“We see some people who say they are happy with their lives as they are, but they want to make sure that [the money] is protected and protected well. They don’t have to worry about paying the bills any more. That’s where the peace of mind comes in.”

The close relationship between David and his clients – characterised by openness and honesty – is the key to being able to manage a client’s finances successfully. He says he has a “15-second chemistry” rule – it takes only that long for each party to know whether their relationship will work.

And in those cases where it does, it tends to be a long-lasting relationship that can lead to them becoming good friends.

All this mixing with the wealthiest people in society can have its perks, of course, but it was by no means an obvious career choice for an electrical engineering graduate whose parents, grandparents and even great grandparents all worked in the railway industry.

The common theme, he explains, is the intellectual challenge.

“I love problem solving,” says David, who was born and grew up in South Shields. “Engineering is all about problem solving. When I am recruiting people, I always look for those people who have logical minds; those who can break complex problems down into simple solutions.

“It is all about the thrill of knowing that you can help somebody who may not know they have a problem and identifying any pitfalls along the way.”

David has not completely turned his back on engineering or the family connection with the railways. The dream project for his workshop is to build a garden railway for his home.

But he has no regrets about moving into financial services and if he needs any reminder of why it is such a challenging job, he need only take a nervous glance at the markets.

He feels most sympathy for those who are coming up to their retirement and do not have the security of a final salary pension scheme. He says many of these people will have seen the size of their portfolios take a significant hit in recent months, which will in some cases force them to reconsider their retirement plans.

This crisis has certainly not just affected the wealthiest in society – and it has challenged many apparent truisms at the same time.

“People just assumed that the banks could never have problems. It has been a wake-up call for some people,” David admits.

So, the strength of that bond between him and his clients has never been more important.

“It is reassuring for them to know that the firm has been here for 100 years and that they can trust the person who is giving them the advice.”