If you have more than about 50,000 euros to invest, wealth managers probably regard you as a target client. In the UK various surveys have come up with the figures that suggest about 1 in 10 households are in this position. One bank reckons that two thirds of those are probably people between 45 and 64 who are saving up for their retirement.

Similar figures have been researched in other western countries, especially the US, where there are now more dollar millionaires than ever before. And many of the new wealthy need help with their financial affairs.

Typically they are entrepreneurs, professionals such as lawyers, consultants and IT specialists with very little time to spend on managing their money. Research has shown that often they are not very interested in financial matters and regard having to make investment decisions as at best an inconvenience and at worst the entrance to a financial market maze that they find confusing.

A great opportunity for the banks then. For an initial annual fee, typically between 1.5 percent and 5 percent of funds placed with them, an annual charge of around 1 percent plus dealing charges for any transactions carried out on the client's behalf, they say they can offer a money management package tailored to the client's specific personal needs.

This can include a wealth assessment, tax consultancy and setting up a portfolio to match the client's risk profile and reward expectations. They will manage the portfolio and report back to the client periodically on how it is performing. How much discretion a client gives his or her wealth manger to invest on his behalf will depend on how closely he wants to monitor what's happening to his money.

All this is good stuff and very useful to those who prefer not to manage their own money. But wealth managers need to be chosen and handled with caution.

A banker's agenda is always to make money for his or her bank, whatever smooth customer service-speak their services come wrapped with. And it is good business for them. No risk, good fee income and dealing commissions on top. The risk for the client however lies in the sheeplike nature of banks.

In typical fashion they have all charged in at the same time hoping no doubt to make money in this area to make up for flagging profits in other, highly competitive areas. As a result the wealth management business is becoming increasingly competitive. So intensely are the wealthy now being marketed to that inevitably that market will also become saturated, at which point services, and probably staff, are likely to start being cut to save costs.

In addition, while trying to sell a client-tailored product they will need to square the circle of providing a volume commodity delivered down cheap channels such as the Internet.

Clients therefore need to choose a wealth manager with caution to protect their own best interests. Here are a few tips:

• Do not put all your investment eggs in one wealth management basket. Consider using two or more and measure them against each other.
• Insist on regular, transparent, detailed but understandable reporting on how they are performing with your money.
• Check whether they will invest your money in their own brand products or whether their approach is to choose the "best-of-breed" ones from all providers in the market.
• Do not hesitate to let your wealth managers go if they under perform or do not provide advice in a clear and comprehensible fashion. There will be plenty of other wealth managers to choose from.

Richard Willsher is a London-based finance and investment writer. With a background in investment banking he has written for the Financial Times, the Wall Street Journal and is former editor of The Investor.