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Zurich Middle East launches DEWS app for UAE end-of-service

Zurich Workplace Solutions (Middle East) Limited has teamed up with Smart, the organisation that powers the Smart Pension Mastertrust in the UK, a global technology provider transforming financial well- being across all generations, to launch the Zurich for DEWS app in the UAE.

The app, developed by Smart and fully customised for DEWS, the Dubai Internationall Financial Centre (DIFC) Employee Workplace Savings scheme, provides members with a simple, quick and hassle-free digital way to manage their workplace savings accounts.

Along with creating much-needed transparency over these investments, the app responds to emerging appetite for contactless solutions and seamless experience across multiple channels.

Zurich Middle East said key features for members using the app include:

• Access to their DEWS account from anywhere, at anytime
• Ability to see their latest account value, contribution history and monitor their investments
• Ability to manage their investments and switch their strategies to suit their risk appetite
• Facility to nominate beneficiaries

"When we launched the DEWS plan, we had made a commitment to continually enhance our service offering such that employers and members find the day-to-day interactions easy, intuitive and hassle-free. We want to take away some of the barriers that detract people from making regular savings, and help our members prepare for a secure financial future. The Zurich for DEWS app is the next step in that journey towards financial freedom," said Reena Vivek, senior executive officer at Zurich Workplace Solutions (Middle East) Limited.

Will Wynne, group MD at Smart added, "This partnership really illustrates what's now possible in retirement technology and we are immensely proud of the end result. It's the first of its kind and was created to provide a smooth and simple customer journey, while simultaneously bringing long term savings into the 21st century."

The DIFC's DEWS plan ensures that all contributions by the employer are held in a trust with the Master Trustee, Equiom, on behalf of the employees, and is fully paid out when the employee leaves the employer. That protection is extended to the historical accrued gratuity pots, if these were transferred into the plan, Zurich said.

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by Logan at http://www.ifa-jobs.com

Swiss watchdog censures Bank SYZ over money laundering rules

Swiss financial market supervisor FINMA reprimanded private Bank SYZ for failing in its duties to root out anti-money laundering in a high-profile case of an Angolan client.

"FINMA found that the bank did not make sufficient efforts to investigate the substantial growth in the client's assets," the watchdog said in a statement, adding it had also failed to clarify the client's high-risk transactions. "The bank did not adequately resolve issues that should have raised suspicions."

FINMA noted the Geneva-based wealth manager had reported suspicions, which enabled criminal prosecutors to investigate the Angolan case. The regulator did not name the client, who has previously been reported as Carlos Manuel de São Vicente, a politically connected Angolan-Portuguese businessman, as finews writes.

Switzerland's public prosecutors froze seven accounts of Carlos Manuel de São Vicente and family members in December 2018 on suspicions of money laundering, according to news website Gotham City, which first reported the news. At nearly $900m it was one of the largest amounts of money frozen by the Alpine nation.

Bank SYZ said it had taken a number of measures to improve the systems it had in place.

"The bank attaches the utmost importance to compliance with its anti-money laundering obligations," it said in an emailed statement. "Unfortunately, for a specific business relationship, the procedures put in place proved to be inadequate."

 

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Jersey may broker its own deal with the EU: Brexit

Jersey's External Relations Minister has admitted that the island may see its own deal with the European Union if it feels that the arrangements at the end of the Brexit negotiating period are unsatisfactory.

"Really, for Jersey, there's three options remaining - a thin deal that we say we want to be part of, the UK not negotiating any deal so there's nothing to be part of, or a thin deal that we decide it's not in our interests to be a part of," Senator Ian Gorst said.

Boris Johnson has admitted the UK is currently heading for a no-deal Brexit, with an agreement now "very difficult" as the two sides dig in and refuse to compromise.

No 10 described a deal as only "still possible" - with a strong attack on the EU's failure to give ground.

"An agreement is still possible and this is still our goal, but it is clear it will not be easy to achieve," the prime minister's spokesperson said.

If the UK signed a deal with the EU which was ‘not of benefit' to Jersey, then the Island would seek to have its own conversations with Brussels, the Senator said.

"In this case it might mean that we'd have to change some of our domestic legislation, for example to have a goods-for-goods deal," Senator Ian Gorst said in an interview with the Jersey Evening Post.

‘We might just say, "You know what, this deal is too much for us - we want to maintain our current approach".

Negotiating directly with the EU would require agreement from the UK in the form of an ‘entrustment' to allow the Island to sign its own international treaty.

Although UK government sources are playing down the idea of the UK walking away without a breakthrough, they agree a deal must be struck by the European Council summit in mid-October.

The economic cost of a no-deal Brexit could be two or three times as bad as the impact of Covid, a report has concluded.

Analysis by the London School of Economics and UK in a Changing Europe says "a no-deal Brexit would represent a further major shock to a UK economy" with a "major set of changes" to the economic relationship with the country's largest trading partner.

"Our modelling with LSE of the impact of a no-deal Brexit suggests that the total cost to the UK economy over the longer term will be two to three times as large as that implied by the Bank of England's forecast for the impact of Covid-19," the report said.

JP Morgan Chase & Co is reportedly set to move €200bn (£184bn) assets from the UK to Germany as a result of Brexit.

The US banking giant plans to finish the migration of the assets to a Frankfurt-based subsidiary by the end of this year, Bloomberg reported, citing people familiar with the matter. 

The shift would make JP Morgan Germany's sixth largest lender, based on reported assets of the country's largest banks last year. 

Germany's minister of State for Europe, Michael Roth, said: "Please, dear friends in London, stop the games. Time is running out." 

 

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48% increase in number of South Africans enquiring about second citizenship

Global citizenship company Henley & Partners's South Africa office has seen a 48% surge in the number of nationals making enquiries about Citizenship-by-Investment programmes around the globe.

The increased volatility driven by covid-19 is pushing investment migration into overdrive, according to Henley & Partners.

"The tumultuous events of 2020, including the unplanned pause during the great lockdown, have resulted in people from all walks of life re-evaluating their circumstances and reconsidering how they wish to conduct their lives and — for those fortunate enough — choosing where they want to live by opting for investment migration," said managing partner and Head of South, East and Central Africa, Amanda Smit told local news outlet BusinessTech.

"Many are taking stock and ensuring they are better prepared for the next pandemic or major global disruption. The relentless volatility in terms of both wealth and lifestyle has resulted in a significant shift in how alternative residence and citizenship are perceived by high-net-worth investors around the world."

In terms of quarterly growth in the numbers of enquiries between Q1 and Q2 2020, the sharpest rise was seen in Nigeria. Henley & Partners recorded an 185% increase in enquiries from Nigerian citizens between the first two quarters, and increases of 48%, 46%, and 40% from South African, Pakistani, and Bangladeshi nationals, respectively.

South Africa was also seeing a sharp rise in the number of people choosing to emigrate financially in order to cease their tax residency with the country and avoid the expat tax.

South Africans living abroad now have to pay tax on anything above their first R1.25m made outside the country. The rest of their earnings - including all fringe benefits, like housing, education and flight allowances - will now be taxed according to the normal tax tables for the year, which can go up to 45% in some cases.

However, expats who follow shady advice to deregister as taxpayers with Sars will suffer in the long run," Jonty Leon, Legal Manager (Expatriate Tax) at Tax Consulting SA warns.

In terms of the total number of enquiries made in the first six months of 2020, Indian nationals outstripped all other nationalities by a long stretch. Henley & Partners received 96.5% more enquiries from Indian nationals than Nigerian nationals, who were placed second, followed by Pakistan and, startlingly, the US.

"The tumultuous events of 2020, including the unplanned pause during the Great Lockdown, have resulted in people from all walks of life re-evaluating their circumstances and reconsidering how they wish to conduct their lives and — for those fortunate enough — choosing where they want to live by opting for investment migration," said Henley & Partners CEO Dr. Juerg Steffen.

"Many are taking stock and ensuring they are better prepared for the next pandemic or major global disruption. The relentless volatility in terms of both wealth and lifestyle has resulted in a significant shift in how alternative residence and citizenship are perceived by high-net-worth investors around the world," he added.

 

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by Logan at http://www.ifa-jobs.com

Comment: BVI's new fund regime and its implications for JV vehicles

This year, the BVI introduced a new regulatory regime requiring certain closed ended fund vehicles, to be recognised by the BVI's Financial Services Commission (FSC) as "private investment funds" or, as the funds industry loves an acronym, PIFs for short. The change, which brings these previously unregulated vehicles into the regulatory perimeter, is in line with other major offshore corporate jurisdictions, and introduces a light-touch, modern regulatory regime. George Weston and Natalie Bundy explain the significance.

While the regime is targeted at genuine fund vehicles, those who own, operate or structure joint ventures using offshore vehicles will also need to be mindful of the change. The boundary between a joint venture and a closed ended fund has always been a porous one, and something that global regulators have often struggled with. 

The broad definition used in the new legislation does mean that some BVI vehicles formed to act as joint venture vehicles might, at least at first glance, appear to meet many of the criteria for a PIF.

As we will set out below, the implementation of this regime certainly should not be cause for panic, but we do recommend joint ventures structured using BVI vehicles consider this change in law carefully and take appropriate advice to ensure that they do not fall within scope.

Background and timing
The regime has been introduced through an amendment to the Securities and Investment Business Act, as well as the Private Investment Fund Regulations 2019.

The new rules came into force on 31 December 2019, but provided for a 6 month transition period for existing closed ended funds that would be affected, allowing for applications to the FSC for existing vehicles to be submitted until 1 July 2020. As this transition period has now ended, if you have a BVI vehicle that you think may be affected, we recommend you take urgent advice on this. Equally, if you are considering setting up a new BVI joint venture, you should ensure that this is factored into your structuring at an early stage.

What is a PIF?
PIFs are broadly defined in the legislation as a company, partnership, unit trust or any other body that:

1. Collects and pools investor funds for the purpose of collective investment and diversification of portfolio risk; and
2. Issues fund interests, which entitle the holder to receive an amount computed by reference to the value of a proportionate interest in the whole or in part of the net assets of the company, partnership, unit trust or other body.

The criteria for an entity to be recognised as a PIF include that it must be limited on one of the following three bases:

1. the PIF will have no more than fifty investors;
2. invitations to subscribe for, or purchase interests in the PIF shall be made on a private basis only; or
3. fund interests shall only be issued to professional investors with a minimum initial investment (other than for certain exempted investors) of USD 100,000.

PIF, joint venture or both?
While on first reading, the legislation seems sufficiently broad that many JVs could potentially be caught, additional guidance issued by the FSC has made clear that the new regime will not actually be as far reaching as it might seem.

Although joint ventures are not specifically exempt, in practice, the majority of JV vehicles are unlikely to be affected by the new regime, and will fall out on one or more of the following grounds.

Single asset vehicles
The critical carve-out, from a JV perspective, is that vehicles holding only a single asset will be deemed out of scope; as such a vehicle would fail to meet the "diversification of portfolio risk" element of a PIF. This should apply to traditional JV structures, where partners have collaborated to focus on a single specific target, or indeed decided to start a new business venture.

Collective investment purpose
In order to meet the definition, it is also critical that the BVI vehicle was formed for the purpose of collective investment between the multiple shareholders. If this was not the primary purpose, then it is unlikely that the regime will apply. This means that generally an entity initially incorporated with one shareholder which subsequently takes on further investment as the business grows should not be a PIF.

Return on investment
The structure for returns on investments in a vehicle is also critical to determining whether it may fall in scope. Investors must be entitled to receive a return that is proportionate to the value of their investment (as would be typical in a fund). If this is not the case then the vehicle will not meet the definition of a PIF. Any joint venture with a waterfall which is based on anything other than shareholding percentages may well fall out of scope.

Single shareholder vehicles
Finally, given that a PIF must "collect and pool" investor funds, any vehicle with only a single investor will also be out of scope. So, in the case of a BVI company, where there is a sole shareholder it will automatically fall outside of the PIF definition. While this is unlikely to be of significance for most joint ventures (which by definition will have two or more investors) it is a critical exemption for many BVI entities. This exemption, combined with the exemption for single asset vehicles may offer pragmatic structuring opportunities using two BVI companies sat above one another, as there is no "look through" provision to consider multiple investors sitting above a single corporate shareholder.

There may also be supporting arguments that some joint ventures seek to avail themselves of, including around whether or not shareholders are subject to capital calls, whether or not transfers of shares are heavily restricted, and the extent to which shareholders are able to participate in the management of the company and appoint directors (all of which would be extremely unusual for a fund, and not at all unusual for a joint venture). While these do not perhaps have any obvious statutory basis, they might suggest that shareholders do not hold a ‘fund interest'.

For existing joint ventures that do not fall out of scope on one of the grounds above, it will often be fairly straightforward to restructure so that they do.

Do I actually want to be a PIF?
While the majority of joint ventures will not be affected by the PIF regime, the opportunity to become recognised as a regulated fund within the bounds of a regulatory regime which is not unduly onerous may appeal to some. It would be relatively straightforward for a joint venture to ‘opt-in' to the regime.

The additional ongoing costs for maintaining a BVI vehicle as a PIF are relatively low, and the ongoing obligations to comply with the new regime are very achievable. In some cases they will not actually require much change from how entities are already operating. The ability to describe a vehicle as being regulated may assist with marketing to potential investors and increase opportunities to operate in certain areas.  Being a regulated vehicle may help with satisfying KYC or AML requirements from banks and counterparties.  

In addition, being regulated may affect the application of other BVI legislation to a BVI entity. There are a number of potential exemptions available where certain legislative requirements may not be appropriate for a vehicle that is already regulated. One primary example of this is the exemption available to BVI regulated funds from the Beneficial Ownership and Secure Search System Act 2017 (commonly referred to as BOSS). There has been some speculation, although nothing is yet confirmed, that the BVI may join other jurisdictions in fully or partly exempting regulated funds (which would include PIFs) from certain economic substance requirements, which might increase the attractiveness of registering as a fund to JVs.

Will BVI joint ventures remain popular?
The BVI has long been one of the most popular jurisdictions in the world for corporate joint ventures. The BVI's company law is flexible and modern, with features designed specifically to appeal to joint ventures; including flexibility to allow a director to act on behalf of their appointing party and no capital maintenance rules to lock up funds and restrict dividends being paid to shareholders. The BVI also has sophisticated service providers compared to some other offshore jurisdictions and a court system which is experienced in hearing complex shareholder disputes, with ultimate appeal to the Privy Council (consisting of the same senior judges as the UK's Supreme Court). It is politically stable, business friendly and tax neutral.

Given these advantages all remain, and given most joint ventures will not be subject to the PIF regime (or, if they are caught, can take some simple restructuring steps to get out of scope), we do not expect the global demand for BVI joint ventures to drop.

George Weston is a partner and Natalie Bundy an associate at Harneys

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by Logan at http://www.ifa-jobs.com

Hansard's LatAm business drives modest growth in full-year results

Hansard Global published its full-year results this morning, showing a slight rise in pre-tax profits and AuM in what the Group described as a 'resilent progress.'

The results for the Isle-of-Man based business show profit before tax of £4.7m, marginally up on £4.6m in 2019. 

Latin America proved a significant bright spot for the year, growing by 44% on 2019 levels. This helped to boost new business levels to £159.8m, a rise of 2.5% overall on 2019. 

Fee and commission income was £49.5m compared with £48.5m last year. And AuM remained all but steady at £1.08bn.

Gordon Marr (pictured), Group CEO, said: "This has been a year of resilient progress given the challenges presented by covid-19. After starting the first eight months of our financial year with strong new business growth, the impact of the global pandemic naturally dampened results in the latter part of the year."

"Despite this, new business, assets under administration and profit before tax were all slightly higher than 2019. Given this resilience and our current financial outlook with new business levels for 1Q2021 only slightly behind that of 1Q2020, we are delighted to be in a position to maintain our dividend in line with last year."

During the year the company also implemented the Isle of Man's Group Solvency regime which involved incorporating the Group's non-insurance companies into the calculation of Value of In-Force (VIF) and Own Funds.

VIF represents the present value of expected future shareholder profits less the present value cost of holding capital required to support the in-force business. VIF totalled £148m as at 30 June 2020, up from £140m at 30 June 2019. The equivalent VIF at 30 June 2019 under the revised methodology was £145m.

Japan
A big priority for the Group going into next year is the launch of a Japan-based investment product. Hansard is currently working to establish distribution parners in Japan and plans to launch its locally-licenced investment product in Japan early next year. 

As reported by II, Hansard received its regulatory license in the Japan region last year and has been working on the second stages prospectus for its existing Aspire product and the as yet unnamed new product for the lucrative Japanese local financial services market.

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EXCLUSIVE: The II Post Lockdown Interviews - Robert Parker, CEO Holborn

In this exclusive video interview - part of International Investment's The Post-Lockdown Interviews series,  sponsored by Hansard - Holborn Assets CEO Bob Parker reveals some of the behind-the-scenes activity at the global IFA firm during the ongoing covid-19 pandemic.

Click on the image below to view.

by Logan at http://www.ifa-jobs.com

Pimfa launches online ESG Academy

The Personal Investment Management & Financial Advice Association (Pimfa)  has launched online training for advisers to meet increasing client demand for environmental, social and governance investing. 

The Pimfa ESG Academy, in partnership with Morningstar, provides CPD-accredited training free of charge to members. 

 The Academy has been designed especially for Financial Advisers to provide them with an immersive and engaging learning experience that supports them in making the most of the growing opportunities arising for their clients from ESG investments.

Liz Field, chief executive of Pimfa, said the industry was witnessing increased client demand for ESG investments.

"There is an opportunity to be seized here, and those companies that ignore ESG, or commit a misstep, could incur significant economic costs and jeopardise their ability to earn long-term, sustainable profits, which in turn has an impact on investors," he said.

Pimfa's ESG Academy is not a traditional online class, as participants can learn at their own pace and in their own time, and they will have access to a library of ESG content that they can engage and interact with on any device.

The online course is split into three modules designed to provide financial with a greater knowledge and understanding of ESG and participants can register here. The Academy simplifies the array of latest information and language around ESG, while also delivering the latest regulatory guidance.

ESG investing has boomed in popularity over recent years as fears over climate change have led investors to consider the impact of their money and a growing number of millennials have begun investing.

Morningstar's analysis suggests there is no performance trade-off associated with sustainable funds, revealing the majority of European sustainable funds outperformed their traditional peers over multiple time horizons across seven Morningstar Categories.

Anastasia Georgiou, director of client solutions in the adviser segment at Morningstar, said: "Our data shows global sustainable investment funds reached a record-breaking $1trn in Q2 2020, demonstrating that ESG is fast becoming the new standard for long term investing.

Additionally, more sustainable funds have survived in the past 10 years, in relative terms. Of sustainable funds available to investors 10 years ago, 72% have survived, compared with less than half (45.9%) of traditional funds.

 

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Manulife unveils ESG fixed income fund for Asia

Manulife Investment Management has launched a new ESG strategy focused on Asian credit.

Manulife Global Fund - Sustainable Asia Bond will primarily be investing in Asian bond issuers that demonstrate superior sustainability attributes and will focus on three sustainability themes: climate change, ageing population and corporate governance.

The product is a UCITS fund and is currently registered for distribution in Singapore with plans for registration in other countries.

"Sustainability is top of mind among global investors," said Endre Pedersen, deputy chief investment officer for global fixed income and chief investment officer for Asia ex-Japan fixed income.

With a team of over 70 fixed income investment professionals based across Asia-Pacific, Manulife Investment Management leverages its scale and resources necessary to actively analyze over 500 Asian credit issuers. Its credit analysts are tasked to evaluate how the ESG factors influence a company's credit long-term profile.

"The fund is the result of our team's years of research and successful integration of E, S, and G factors into our credit analyses, which enables us to gain a better understanding of the true worth of companies we invest in," Pedersen added.

The fund employs a four-stage investment approach. The process starts with assessing the global macro environment focusing on key factors, followed by analyzing and comparing a broad range of opportunities across sectors using a top-down approach and a proprietary global sovereign ESG model.

Once attractive sectors and markets are identified, its extensive credit research team then conducts bottom-up, fundamental research within its ESG framework, as well as absolute and relative value analysis in the context of equal alternatives on ESG impact.

 

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Goldman Sachs AM launches GS Global ESG Enhanced Income Bond Portfolio

Goldman Sachs Asset Management (GSAM) has launched the GS Global ESG Enhanced Income Bond Portfolio.

This new product will be managed by the company's global fixed income team, which currently oversees more than $700bn in assets. It seeks to provide investors with access to the broad global fixed income opportunity set, including corporate bonds, securitised credit and emerging market debt, and deliver high income and long-term capital appreciation.

"The GS Global ESG Enhanced Income Bond Portfolio makes a conscious effort to avoid companies that in our view exhibit weak ESG profiles. We believe this approach can contribute to long-term performance," said Jonathon Orr, Global Fixed Income Portfolio Manager.

GSAM said bonds held in the portfolio would be identified through rigorous fundamental research that integrates ESG analysis. It will apply exclusion-based screens, omitting sectors that are "inconsistent with widely accepted norms and values".

The fixed income team will then conduct in-depth analysis of individual company revenue streams to screen for negative social and environmental factors before using proprietary ESG scores to eliminate bonds from issuers with the lowest scores.

"We believe ESG analysis is critical for identifying 21st century business risks and ESG integration is therefore our fiduciary duty as an active asset manager. ESG is the responsibility of all investment professionals, not just those with ESG in their title," Ashish Shah, co-chief investment officer of Global Fixed Income, added.

The fund, which is a new sub-fund of the UCITS-qualifying, Luxembourg-domiciled Goldman Sachs Funds SICAV, is available to both institutional and retail clients across Europe.

 

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'Big Four' accounting firms set out common ESG reporting standards

Leaders of the Big Four accounting firms have joined forces to unveil a reporting framework for ESG standards.

In an article in the Financial Times published 22 September, the so-called Big Four - made up of PwC, KPMG, EY and Deloitte - have all backed the framework, which has been headed up by the International Business School (IBS), run by Bank of America chief executive Brian Moynihan.

The Big Four and the World Economic Forum were invited to identify a set of universal ESG metrics and recommended disclosures that could be reflected in the mainstream annual reports of companies. The result of this process is 21 core metrics and 34 expanded metrics and disclosures, which IBS members are encouraged to adopt. 

The report, which was seen by Professional Adviser, outlined four pillars that firms can use to approach ESG reporting standards. These pillars include; principals of governance, planet, people and prosperity.

The report said: "Each of these pillars has an important bearing on the capacity of a firm to generate shared and sustainable value. Performance in one pillar is highly interdependent with that in the others."

According to the FT, if successful, the initiative would mark the first truly coordinated approach to ESG reporting, prompting investors to move more money into the area.

Deloitte global chief executive Punit Renjen told the paper: "Right now, there is an alphabet soup of metrics. It is important for us to have a common set of standards and if there is widespread adoption it will lead to change in behaviour."

This article was first published by our sister title, Investment Week

by Logan at http://www.ifa-jobs.com

Shift in retirement journeys set to 'reshape the market': Canada Life

A shift in retirement journeys is increasing dramatically among consumers and will reshape the market for advisers over the next 15 years, according to analysis from Canada Life.

This comes as the number of over 60s is expected to grow by a third, to 20.9m people by 2035, presenting huge market growth and a significant opportunity for advisers.

The analysis found that retirement experiences are fragmenting, having been impacted by changes in how we spend our time, accumulate and spend wealth, the rise in individualism and the declining relevance of social norms.

Canada Life says the two retirement journeys which will grow the most in size over the next 15 years are:

- Complex Families, Complex Finances - this group of retirees currently account for 32% of the over 60s market but is expected to be the largest group by 2035. These retirees' family situation complicates their financial needs and planning. They are possibly on their second marriage and taking care of both their children and their parents' financial needs.

- Late Financial Bloomers are characterised by achieving financial stability later in life. People in this group are likely to have got married, bought their first property and had children later in life, meaning they have less time to accumulate wealth. Currently they make up just 6% of the market but are expected to grow significantly over time.

Today, the majority of advisers' business models cater to retirees that are financially mature and stress free - this group makes up just 21% of the market and is expected to decrease as a proportion of the total market over the next 15 years.

Sean Christian, managing director of Canada Life UK, said: "With those over 60 set to grow exponentially in the next 15 years there is an obvious opportunity for advisers. However, these new retirement journeys show us that the opportunity is fragmenting and focused in new areas. Societal changes have, and will continue to have an impact on the way we live in retirement, changing both the lifestyles and advice needs of clients. Unless the industry shifts its focus to support the clients that need them, we will collectively miss out on the opportunity to enable these people to have better financial futures.

"It's essential for us to lead positive change in the industry by thinking about future generations today. At Canada Life we're entering an ambitious growth period and partnering with advisers to create the financially secure retirements of the future is a big part of our vision. It's no secret that ‘retirement' will mean something very different in 20 years' time and by working alongside advisers now to support them in future-proofing their businesses, we will all be ready to support the clients of today and tomorrow."

 

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BVI's government commits to 'publicly accessible registers'

The British Virgin Islands government has officially announced its commitment to the implementation of public registers of beneficial ownership in the territory, despite "reservations".

Premier Andrew Fahie said: "Your government commits to working in collaboration with Her Majesty's Government towards a publicly accessible register of beneficial ownership for companies, in line with international standards and best practices as they develop globally and, at least, as implemented by EU Member States by 2023 in furtherance of the EU Fifth Anti-Money Laundering Directive (AMLD5)."

"It is of paramount importance that your government emphasises that this commitment is made with all due regard to the protection of, and proportionate safeguards for, all rights secured under our territory's constitution, and without prejudice to any interpretation of our constitution expounded by a court of law, whether in the past, pending, or in the future," Fahie explained.

Beneficial owners are persons who own property rights to a company even though the legal title of the property is in another person's name. The aforesaid registers seek to make the identities of these ‘secret owners' public and other overseas territories are said to have already decided to implement them.

Premier Fahie made the statement in the House of Assembly where he said that despite his commitment, he still has a number of reservations on several of the UK's existing policies which he believes need to be changed.

"There is need for concern that publicly accessible registers could be of more use to the prurient and ill-intentioned than those we seek to assist, and in the BVI we do not believe that outsourcing supervision of corporate ownership to the public is a sustainable or legitimate policy," he stated.

"While it is a noble objective to seek the prosecution of terrorists, tax evaders and money launderers, the net that will be cast by the model of publicly accessible registers, as is being presently proposed, is disproportionate, since it can be used to breach the rights of the law-abiding and tax-paying individuals who are far greater in number than the targeted law-breakers," Fahie added in a letter to the UK minister responsible for Sustainable Development and Overseas Territories.

The decision follows a warning from the Governor Augustus Jaspert said the absence of a decision could hurt the BVI.

"Others will be better placed than me to talk about the financial services industry but there is a risk, for me, that BVI becomes an outlier rather than being one up there [at] the front of the pack." "We have successfully, throughout our years in financial services, shown that we are confident, we are innovative, that we get ahead of global trends rather than wait … and that has served us well in the last 25 years or more of our financial services industry," he added.

Eight of the UK's overseas territories had already committed to introducing publicly accessible registers of company beneficial ownership within the next three years as part of attempts to improve financial transparency, leaving the British Virgin Islands (BVI) as the only significant financial centre still to do so.

Premier Fahie said he will provide a statement in the House of Assembly with a further update on the subject within 12 months of the AMLD5 Implementation Review which is scheduled for January 2022.

 

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UK watchdog bans financial adviser after £2.3m fraud

The Financial Conduct Authority (FCA) has banned a financial adviser following his role in promoting two fraudulent investment schemes that cost investor over £2.3m.

Simon Charles Oakley had pled guilty to two counts of making misleading, false or deceptive statements under the Financial Services and Markets Act 2000, and was sentenced to imprisonment for 30 months back in 2017.

He was authorised as a financial adviser between 27 August 2009 and 31 May 2018. 

"He misled people into investing in the knowledge that the first fraudulent scheme had failed and, in hiding that knowledge from the investors, this was "almost as close to fraud as is possible", the FCA said in its notice.

"Oakley personally sold the schemes and ignored all of the red flags, repeatedly assuring investors that the schemes were working when he knew that they were not."

Sentencing Oakley to 30 months in prison in 2017, Judge Kearl said that Oakley was ‘reckless' in promoting the first scheme, and his conduct in promoting the second scheme was ‘at an even higher level' than the first. 

 

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by Logan at http://www.ifa-jobs.com

Utmost Wealth targets expats in Portugal with new product

Utmost Wealth Solutions has unveiled a new product for expats living in Portugal in what is the first of a number of planned product launches across Europe.

Apex (Portugal) combines a life assurance policy with an array of investment options suited for expats living in Portugal. 

"Apex (Portugal) includes many attractive features such as new charging structures, online access through a secure site as well as a wide range of investment options," Paul Thompson, CEO of Utmost Group said in a statement.

According to the Expat Insider 2019 Survey from InterNations, Portugal came third overall out of 64 global destinations and was at the top of the rankings for Europe.

With a growing number of people choosing to move to Portugal and take advantage of the Non Habitual Residence regime and Golden Visa, Utmost Wealth Solutions said the decision to launch a Portuguese compliant product to meet the demand from clients and advisers was essential.

The Non-Habitual Resident (NHR) Program in Portugal allows beneficiaries to get reduced tax treatments on some incomes for ten years and an exemption on almost all foreign incomes. The types of incomes include pensions, investments, rental income, and capital gains.

Under the Golden Visa scheme, foreigners can invest in the country and obtain residency and citizenship in return. Portugal also boasts significant lower prices of services. According to Numbeo.com, consumer prices in Portugal are 23.09% lower than in the United Kingdom. This includes the prices of rents, restaurants, groceries, and other basic costs.

According to the Portuguese Immigration and Borders Service's (SEF) 2019 data, there are around 35.000 registered residents in Portugal, mostly gathered in Lisbon, Algarve, and Porto.

"This is the first of a number of planned product launches in Europe and represents a key milestone for our group," Thompson added.

Utmost Wealth Solutions  - with core operations in the Isle of Man, Ireland and Guernsey and offices around the globe - was initially formed by the acquisition of AXA Isle of Man and Aviva International in 2016, followed by Generali PanEurope in 2018 and Generali Worldwide in February 2019. Each entity operates under the Utmost Wealth Solutions brand and the businesses have a track record in the wealth planning industry, being established in the 1990's.

 

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by Logan at http://www.ifa-jobs.com

Schroders partners with HSBC in Singapore on ESG multi-asset fund

Schroder Investment Management (Singapore) today announced the launch of Schroder ISF Sustainable Multi-Asset Income (SMAI), a multi-asset fund for which HSBC Singapore is the exclusive distribution partner.

Schroders said it is one of the first asset managers globally to launch a new multi-asset fund that is focused equally on delivering income and sustainability outcomes. The strategy is attractive in the current environment as investors need to contend with the dual challenges of persistently low yields and an increased urgency to prioritise rising sustainability risks heightened by the global pandemic and recent climate events.

Lily Choh, Schroders' deputy CEO, Singapore and head of distribution, South-East Asia, commented: "The pandemic has sharpened focus on environmental, social and governance (ESG) risk with recognition amongst investors and institutions over how these factors are becoming increasingly material to investment outcomes. The findings from Schroders' latest Global Investor Study reinforce this belief: 43% of investors in Singapore now frequently invest in sustainable investment funds, a marked increase from 31% two years ago.

"Sceptics have long argued that growing interest in sustainability would not be supported as markets become more challenging. On the contrary, the current crisis has put sustainable investment in the forefront of investors' minds with growing evidence that sustainable business models are more resilient and better able to withstand market shocks. For investors seeking income, this challenges the notion that there needs to be a trade-off and you must forgo attractive income if you are investing sustainably."

"Since 2000, we have engaged actively with management teams to promote more sustainable business practices and have driven change in the industry through a number of investor initiatives, such as pushing for greater transparency and disclosure on sustainability-related risks and opportunities."

Schroders has had a dedicated sustainable investment team for over 20 years. Today, the team has 22 members, and Schroders has achieved an A+ rating for overall strategy and governance in relation to sustainable investment for the fifth year running by the Principles for Responsible Investment (PRI), an influential United Nations-backed global investor initiative.

"We are very pleased to partner exclusively with HSBC Singapore for the distribution of this fund, given our shared commitment to sustainability and in making sustainable investing more accessible to all investors in Singapore," Choh added. 

HSBC customers will be able to invest in Schroder ISF Sustainable Multi-Asset Income with as little as SGD1,000. The fund's base currency is in euro, but Singapore dollar-, US dollar- and Australian dollar-hedged classes are also available to investors.

The fund aims to deliver a natural base level of income of 3 to 5% p.a. paid monthly, by investing across a diverse range of asset classes and regions, including investments that target better sustainable outcomes like carbon neutral equities and green bonds. The fund's SGD, USD and AUD hedged share classes most recently delivered an annualised payout of 4.5%.

With 95%1 of investors in Singapore requiring more information on the sustainability aspects of their investments, a differentiating feature of the fund is that Schroders produces in-depth reports with different sustainability lenses, from the fund's carbon profile to positive characteristics relative to the United Nation's Sustainable Development Goals, to provide greater clarity and insight to clients on the impact of their investments.

Many sustainability funds in the market rely on third party scoring or screening for ESG analysis, but ratings across different agencies can be inconsistent and are typically backward-looking. Schroders has developed a suite of innovative proprietary tools using a vast traditional and non-traditional data set to improve on the conventional ways of ESG measurement. Schroders' SustainEx investment framework, which quantifies the hidden costs of companies' social and environmental impact, was recently awarded first place for Impact Reporting and Impact Measurement in the Environmental Finance IMPACT Awards 2020. 

Ian Yim, head of Wealth and International, HSBC Singapore said: "ESG issues continue to play a key and integral part in how we unlock sustainable investment opportunities for our clients. Recent global climate events have further heightened the urgency for our customers to pivot towards a more sustainable future - not just in terms of how they live, but also how they can invest responsibly."

Yim added: "HSBC's commitment to furthering sustainability includes pledging US$100 billion globally in sustainable financing and investments by 2025.  While closer to home, we plan to expand our range of sustainable investment products and solutions offered to customers across the wealth continuum."

"The Schroder ISF Sustainable Multi-Asset Income fund, being one of the first of its kind in the market, compliments our range of ESG fund strategies. This fund balances our customers' search for yield amidst the current low interest rate environment and their desire to make a difference to our environment. In addition, Schroder's overall resources and expertise in the ESG space gives added assurance to our clients that their funds are being channelled to companies that are aligned to their beliefs."

by Logan at http://www.ifa-jobs.com

VIDEO: Minister Elsworth Johnson on how The Bahamas is 'open for business'

In this video below - conducted by International Investment's Gary Robinson during lockdown in a special series of video interviews that are part of the 2020 Bahamas Special Report - we speak to Bahamas Minister Ellsworth Johnson who highlights how The Bahamas has coped and, indeed, even thrived amid recent dramatic events.

The video is part of a series of videos, interviews and features in the International Investment Bahamas Special Report 2020 which was supported by The Bahamas Financial Services Board.

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by Logan at http://www.ifa-jobs.com

BREAKING: Schroders partners with HSBC in Singapore for launch of ESG multi-asset fund

Schroder Investment Management (Singapore) today announced the launch of Schroder ISF Sustainable Multi-Asset Income (SMAI), a multi-asset fund for which HSBC Singapore is the exclusive distribution partner.

Schroders said it is one of the first asset managers globally to launch a new multi-asset fund that is focused equally on delivering income and sustainability outcomes. The strategy is attractive in the current environment as investors need to contend with the dual challenges of persistently low yields and an increased urgency to prioritise rising sustainability risks heightened by the global pandemic and recent climate events.

Lily Choh, Schroders' deputy CEO, Singapore and head of distribution, South-East Asia, commented: "The pandemic has sharpened focus on environmental, social and governance (ESG) risk with recognition amongst investors and institutions over how these factors are becoming increasingly material to investment outcomes. The findings from Schroders' latest Global Investor Study reinforce this belief: 43% of investors in Singapore now frequently invest in sustainable investment funds, a marked increase from 31% two years ago.

"Sceptics have long argued that growing interest in sustainability would not be supported as markets become more challenging. On the contrary, the current crisis has put sustainable investment in the forefront of investors' minds with growing evidence that sustainable business models are more resilient and better able to withstand market shocks. For investors seeking income, this challenges the notion that there needs to be a trade-off and you must forgo attractive income if you are investing sustainably."

"Since 2000, we have engaged actively with management teams to promote more sustainable business practices and have driven change in the industry through a number of investor initiatives, such as pushing for greater transparency and disclosure on sustainability-related risks and opportunities."

Schroders has had a dedicated sustainable investment team for over 20 years. Today, the team has 22 members, and Schroders has achieved an A+ rating for overall strategy and governance in relation to sustainable investment for the fifth year running by the Principles for Responsible Investment (PRI), an influential United Nations-backed global investor initiative.

"We are very pleased to partner exclusively with HSBC Singapore for the distribution of this fund, given our shared commitment to sustainability and in making sustainable investing more accessible to all investors in Singapore," Choh added. 

HSBC customers will be able to invest in Schroder ISF Sustainable Multi-Asset Income with as little as SGD1,000. The fund's base currency is in euro, but Singapore dollar-, US dollar- and Australian dollar-hedged classes are also available to investors.

The fund aims to deliver a natural base level of income of 3 to 5% p.a. paid monthly, by investing across a diverse range of asset classes and regions, including investments that target better sustainable outcomes like carbon neutral equities and green bonds. The fund's SGD, USD and AUD hedged share classes most recently delivered an annualised payout of 4.5%.

With 95%1 of investors in Singapore requiring more information on the sustainability aspects of their investments, a differentiating feature of the fund is that Schroders produces in-depth reports with different sustainability lenses, from the fund's carbon profile to positive characteristics relative to the United Nation's Sustainable Development Goals, to provide greater clarity and insight to clients on the impact of their investments.

Many sustainability funds in the market rely on third party scoring or screening for ESG analysis, but ratings across different agencies can be inconsistent and are typically backward-looking. Schroders has developed a suite of innovative proprietary tools using a vast traditional and non-traditional data set to improve on the conventional ways of ESG measurement. Schroders' SustainEx investment framework, which quantifies the hidden costs of companies' social and environmental impact, was recently awarded first place for Impact Reporting and Impact Measurement in the Environmental Finance IMPACT Awards 2020. 

Ian Yim, head of Wealth and International, HSBC Singapore said: "ESG issues continue to play a key and integral part in how we unlock sustainable investment opportunities for our clients. Recent global climate events have further heightened the urgency for our customers to pivot towards a more sustainable future - not just in terms of how they live, but also how they can invest responsibly."

Yim added: "HSBC's commitment to furthering sustainability includes pledging US$100 billion globally in sustainable financing and investments by 2025.  While closer to home, we plan to expand our range of sustainable investment products and solutions offered to customers across the wealth continuum."

"The Schroder ISF Sustainable Multi-Asset Income fund, being one of the first of its kind in the market, compliments our range of ESG fund strategies. This fund balances our customers' search for yield amidst the current low interest rate environment and their desire to make a difference to our environment. In addition, Schroder's overall resources and expertise in the ESG space gives added assurance to our clients that their funds are being channelled to companies that are aligned to their beliefs."

by Logan at http://www.ifa-jobs.com

Nomura expands in LatAm through deal with Swiss AIS FInancial Group

Nomura Asset Management expands its Latin American presence through strategic deal with an independent Swiss investment boutique.

Japanese firm Nomura Asset Management (NAM) has signed an agreement with AIS Financial Group to market NAM's funds targeting Latin American clients from Argentina, Panama and Uruguay willing to invest offshore.

In a statement, Nomura said the deal will allow AIS to promote a number of Nomura's best in class UCITS funds among AIS's wealth management network.

The product range includes Nomura's core funds:

• Global Dynamic Bond Fund
• Global High Conviction Fund
• US High Yield
• Japan High Conviction

Peter Ball (pictured), head of EMEA Distribution at Nomura Asset Management UK, told International Investment: "We are delighted to appoint AIS. They know the region very well. We operate in LatAm today, but AIS covers offshore investors such as asset managers/wealth managers/family offices i.e. potential clients that we are not currently covering. They will help extend our reach within the region."

"We are starting with Panama, Uruguay and Argentina as AIS is extremely active in all those countries." 

"It is not their role to cover the large institutions in the region but to widen our coverage beyond what we cover today," Ball explained.

NAM has a range of UCITS products with extremely strong performance.  This is one part of NAM's strategy to widen its global coverage.

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by Logan at http://www.ifa-jobs.com