In response to Japan’s rapidly aging population and growing concerns about end-of-life planning, major securities companies are increasingly prioritizing inheritance-related services. With many individuals focused on organizing their assets and preparing for inheritance, firms are expanding their offerings to ensure continued client engagement and secure assets under management.
Daiwa Securities has taken a proactive stance by stationing inheritance consultants at both its headquarters and branch offices. These consultants, typically holding senior-level certified financial planner qualifications, collaborate with sales staff to advise clients on inheritance tax planning and the importance of having a will. The company has been a trailblazer in this area, having initially focused on inheritance services in 2011. In 2016, Daiwa introduced the Fund Wrap Premium, a discretionary investment product that allows clients to designate heirs. Since then, the product has gained traction, with the number of new contracts rising significantly.
Soichiro Matsushita, head of Daiwa’s wealth advisory department, reflected on the company’s shift in approach. “We used to take a passive approach to inheritance, but we now proactively tell clients, ‘If you encounter any issues, please feel free to reach out to us anytime,'” he said. This proactive strategy has proven effective, particularly in attracting new customers and maintaining long-term relationships.
Other firms are following suit. SMBC Nikko Securities, for instance, has been hosting inheritance seminars across its branches, including one in Shibuya in December, where a tax accountant provided valuable insights into will drafting and inheritance disputes. Participants have expressed their interest in seeking individual consultations after attending such sessions, indicating a growing demand for professional advice on inheritance matters.
Japan’s securities industry is pivoting away from its traditional reliance on commission income from frequent trading, focusing instead on managing assets and providing a broader range of services. This shift provides firms with an opportunity to consolidate clients’ assets and retain business relationships. As one securities company official stated, “When clients had inheritance-related needs, we were better able to prevent asset outflows to other companies, particularly with large-scale inheritances.”
Mizuho Securities has also made significant strides by assigning senior asset succession consultants to its branches across Japan. With strong ties to Mizuho Bank and Mizuho Trust & Banking, the company offers a range of complementary services, including will trusts and real estate-related services. Consultants receive both online and in-person training to enhance their ability to meet clients’ needs.
In addition to inheritance services, some traditional brokers are expanding their offerings to meet broader customer demands. Ichiyoshi Securities has introduced a referral service for clients seeking advice on living alone or funeral planning, earning commissions from partnering businesses. Similarly, Nomura Securities has deployed 290 “Heartful Partners” nationwide, trained to address concerns beyond inheritance and assist with issues such as nursing home placements. SMBC Nikko Securities is also considering offering employee training courses focused on dementia.
As Japan’s securities industry adapts to the evolving needs of its aging population, these efforts highlight a shift towards providing comprehensive, long-term solutions to clients, securing their assets, and ensuring the continued success of the firms themselves.
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