Category: Wealth Management

PensionsWealth Management

What are the top ways to save on everyday spending?

We’re always on the lookout for ways to save money, especially after our bank balances have taken a hit over the festive period. Of course, there are the traditional ways of saving such as budgeting and setting aside a certain amount of funds each month. But, without overly restricting your leisure activities, what everyday changes can you make to spend less?

1.      Spend less on your energy bill

Make small everyday changes to lower the cost of your energy bill.

Did you know that 4% of your energy bill is attributed to cooking? Work on lowering this if you can. Your oven stays warm for a long time after you’ve switched it off. Try turning it off 10 minutes before you’re finished cooking to save on energy.

Instead of turning your thermostat up during the colder months, layer up instead to save on pennies! Switching down by just one degree Celsius can save you £85 per year — it all adds up. When it comes to showering, cutting your shower time down to 5 minutes instead of 15 minutes can save you £98 per year — less singing and faster washing!

2.      Storing food properly

When we’re packing food away in the fridge or freezer, we usually don’t think about how it’s stored. But, the way that you put away your goods can have an impact on your energy bill.

If you pack your freezer more tightly, this keeps more of the cold air in when you open the door. This means that the appliance doesn’t have to work as hard to lower the temperature again. The same applies for the refrigerator too — a full fridge requires less energy to stay cool than one that’s empty. If you’re struggling to pack your fridge or freezer full, filling it with newspaper can do the job.

3.      Save money booking holidays

Even when we’re trying to save money, we all deserve a holiday now and then! The good news is that you can save money by following a few top tips the next time you book a vacation.

Try and fly out on a Friday if you can, this can save you 18% on your airfare compared to if you flew out on a Sunday. Taking into consideration the average cost of a flight and the fact that the average Brit goes on holiday three times a year, you could save £85 annually by following this top tip.

Be calculative about when you book your holiday too. You can save £36 per year by booking your trip on a Monday as flights are 5% cheaper.

Consider packing more economically too. You can save £144 per year by only taking hand luggage on your flights. Squeeze more into your suitcase by rolling clothes and packing garments in your shoes.

4.      Meal prepping

Being prepared when it comes to grocery shopping and planning lunches for the week can help save on cash.

Even making a shopping list before you head to the supermarket can help. In fact, 60% of people who take a shopping list to the supermarket said it saves them money. It stops you buying things that you don’t necessarily need and helps you stick to your budget.

Create a meal plan for the week too. This means that you’re only buying what you need and don’t need to spend money on unexpected lunches out. Statistics have shown that you can save an impressive £1,300 per year by preparing lunch at home rather than eating out during the week.

5.      Eco-conscious coffee drinking

There are a few ways that you can be eco-conscious about your coffee drinking while saving money.

First of all, you can start by making your coffee at home when you can. You can save £507 per year by making your coffee at home instead of buying one each day from a retailer. If you prefer coffee from the store, why not take your own cup? This is helping the environment and you can save £150 per year as many high street retailers now offer 50p off coffee when you present your own cup.

 

Make the small changes above and watch your pennies turn into pounds this year! For more saving tips, check out True Potential Investor’s Life Hacks interactive.

Transactional and Investment BankingWealth Management

Promising Regional Start-up Gets Funding from Hungarian Companies

  • Enter Tomorrow Europe, a venture capital fund operated by Lead Ventures has gained share in Czech start-up Neuron Soundware, utilizing investments from MOL and Eximbank.
  • The Czech start-up analyses sounds and vibrations to detect when industrial machines need maintenance.
  • Apart from the Hungarian companies, the EUR 5,7 million investment is also supported by two Czech capital funds, Inven Capital and J&T Ventures.

Lead Ventures continues to expand its portfolio with the help of MOL, Eximbank, together with Czech capital funds. Together, the business partners invested EUR 5,75 million in Czech company Neuron Soundware. The start-up is one of the first companies in the region to implement sound-based diagnostics of industrial machinery, which greatly helps factories using such equipment.

Enter Tomorrow Europe, a capital fund operated by Lead Ventures, supported by MOL and Eximbank used funds from Hungary for its latest /5000 venture capital investment. Together with Inven Capital, a member of ČEZ Group, Lead Ventures gained share in the Czech Neuron Soundware company.

Neuron Soundware was founded as a start-up in Prague in February, 2016. Currently, they employ 20 experts and last year, they had revenue of almost half a million Euros. The company provides AI-based solutions for several industries, including the energy industry. Their software analyses the sounds made by industrial machines, and can detect even the smallest of changes or unusual noises, indicating that the equipment is faulty or in need of maintenance. Their technology is already used by several global corporations, including Daimler, BMW, Innogy, E.ON, Airbus and LG.

“We know exactly how pumps, gearboxes, cylinders, electromotors, or compressors should sound. The sounds of all regular components of a machine are stored in a database. But that is not enough, our artificial intelligence software is able to distinguish problem noises from regular process hum and surrounding sounds, giving the customer the certainty that the machine will not pull off any unpleasant surprises,” says Pavel Konečný, founder and CEO of Neuron soundware.

“Predictive maintenance is a part of Industry 4.0. Neuron’s exciting technology has the potential to create a real break-through in this area. We trust that, with our newest regional investment, this innovative solution can improve the efficiency of several industries,” added Ábel Galácz, CEO of Lead Ventures.

“Start-ups from Central Europe, which have already been tested, have great potential to break through in global markets. As part of our strategy, we are looking for innovative solutions that can increase effectivity of technical processes in industrial services. Like our recent entry into Slovak GA Drilling, our entry into Czech Neuron Soundware is an example of a successful connection of small start-ups with a strong international company for further growth,” said Oszkár Világi, MOL Group Chief Innovation Officer.

The full value of the investment is EUR 5.75. Almost half of that sum is provided by Lead Ventures ETE, using funds from MOL and Eximbank. The rest of the price is covert by Inven Capital and Neuron’s previous investor, J&T Ventures.

Managing over EUR 100 million, Lead Ventures aims to support start-ups with innovative ideas all over the CEE region, assisting them to take their products or services to the global market. MOL has been supportive of the goals of the investment fund before. In March, for example, Lead Ventures signed a EUR 4,2 financing deal with the Slovakian GA Drilling company. GA Drilling focuses on developing a revolutionary electronic plasma technology, creating plasma drills capable of penetrating deeper layers of the ground at a reduced energy cost, making geothermic energy more accessible. As part of the deal, experimental drill heads are now being tested at MOL’s own hydrocarbon facilities.

EquityFunds of FundsInfrastructurePrivate Client

Fairjungle raises €1.8m to accelerate is growth in the European business travel market

The Paris-based start-up, founded by former McKinsey mangers and Apple engineers, has recently raised close to €2m to accelerate the deployment of its modern business travel management solution in France, the rest of Europe, and beyond.

Fairjungle shifts into second gear. After making a name for itself in 2018 in the world of business travel, the start-up intends to accelerate its growth in 2019 with this raise of €1.8m. This round is highlighted by a complementary group of investors such as entrepreneurs Thibaud Elzière (Fotolia, eFounders; PayFit investor) and Eduardo Ronzano (Keldoc; Meero investor), business travel expert Bertrand Mabille (former Europe MD of Carlson Wagonlit Travel), and Whitestones Ventures, an investment fund led by Goldman Sachs alumnus Youssef Kabbaj.

Corporate travel in the technology age
Launched at the end of 2017 by former managers and engineers from McKinsey and Apple, the start-up has developed a solid reputation as an innovative challenger in the world of business travel.

Today, Fairjungle allows business travellers to book all their trips on a single platform in just a few simple clicks, while saving their companies 20-25% on their travel budgets.

Using proprietary algorithms based on the latest machine learning technologies, Fairjungle helps customers reduce the average booking time from 25 minutes to 60 seconds.

Voted 2018 Start-up of the Year at the IFTM Tourism Fair, Fairjungle’s platform today boasts more than 400 airlines and over a million accommodation options, all available at the best prices on the market.

For CEO Saad Berrada “everything started from our experience as consultants at McKinsey. We spent a fortune travelling but had to do so via a user experience dating back to the 1980s. With the technological tools we have today it was mindboggling that there was such a large gap between leisure and business travel. Thus, we set ourselves the goal of providing business travellers with an experience closer to that of Amazon than that of the La Redoute phone catalogue. We worked with a team of former Apple engineers and designers to rethink everything from the ground up; that’s how Fairjungle was born!”

For Youssef Kabbaj, managing partner of Whitestones Ventures (www.whitestones.vc) “FairJungle is a one stop shop solution for lean organizations who want more efficient business travel while improving massively the user experience and streamlining the booking process. The market is enormous and the team is amazing. We are very proud at Whitestones Ventures to be part of this adventure as investors and as (very satisfied) clients.”

Fairjungle redesigned the typical booking process of a business traveller to save time and money for all stakeholders involved. Thus, the platform now allows users to book and prepay their next trip (flight and hotel) in less than one minute (vs. an average 25 minutes with traditional tools). On the employer side, travel management is facilitated through automated travel policy functionality, a travel budget approval module, and an accounting reconciliation support tool.

The start-up has also innovated by offering a gamification module allowing businesses to save nearly 30% on their business travel expenses, while improving employee satisfaction. How? By directly influencing the purchasing behaviour of employees and rewarding them for choosing cheaper travel options. Think of it as an “inverted” loyalty program that promotes savings, realigning the financial interests of the company (the payer) and the travelling employee (the trip consumer).

A barely disrupted €260 billion market
With this raise of nearly €2 million, Fairjungle intends to shake up the European business travel market, estimated at more than €260 billion. Although the market is still largely in the hands of traditional, poorly-digitised agencies, new players are developing abroad. TripActions, a California start-up, is positioned in the same segment in the US and is now valued at more than €1 billion. Fairjungle’s formula for success is to focus on technology and the user experience for both the traveller and employer.

Fairjungle Co-Founder & CTO, Bertrand Guiheneuf, trained at Apple and was long-time right-hand man of Jean-Marie Hullot, CTO of Apple. For him “the opportunity is, above all else, a technological one. The journey, and especially the business trip, has been inadequately disrupted by digital technology: the technical culture dates back to the 1980s and 90s. Much of business travel today is still done manually. This limits the possibilities of existing solutions but also opens up a world of exciting possibilities for a team trained in the development of consumer applications, like Fairjungle.”

Fairjungle shifts into second gear
By leveraging the latest technologies (e.g., artificial intelligence, NDC), Fairjungle is primarily targeting modern companies that are looking for a tool to help them manage their journeys easily and with better costs, whether or not they currently use a travel agency.

Having seen the power of Fairjungle’s platform, a large number of start-ups and SMEs, as well as some larger companies such as OVH, are onboard. With additional success abroad, especially in London and Dubai, the company sees big things ahead beyond France.

Private BankingPrivate ClientStock MarketsWealth Management

Ashfords LLP Launch Digital Legacy Service

The death of a loved one is a traumatic and difficult time. Dealing with an estate can often result in unnecessary cost, time and upset when trying to trace assets and meet the wishes of the deceased. Assets can be misplaced, forgotten about or even diminished in value before you get the chance to deal with them. Law firm, Ashfords LLP, has developed and launched a new and innovative digital legacy platform for private individuals to make executor’s lives easier.

Digital legacy enables users to keep a secure record of their accounts and assets (whether it is a bank account, shares or even the existence of social media accounts), leave messages for loved ones, set out funeral plans and wishes and help ensure that the process of dealing with their estate following their death is as easy and as cost effective as possible.

On the death of the individual the system is unlocked for executors in a read-only format to ensure that a clear audit trail between the wishes of an individual and the administration of the estate is maintained. The primary purpose of the system is to facilitate executors to know what exists so they can ensure all assets are accounted for and all accounts are closed.

Executors also have the option to open up a memorial book where friends and family can send in memories of the individual which can then be used at the funeral, executors can also send details of funeral plans through the Digital Legacy system if they wish to.

Michael Alden, Head of Private Wealth at Ashfords said: “We want to help individuals keep track of their estate and in turn help ensure that following a bereavement, families are able to close down any online accounts quickly and efficiently making the process less stressful, and potentially reducing the cost of administering estates. We are excited to launch our Digital Legacy service and hope this will be a real benefit to its users and their families.”

Garry Mackay, CEO of Ashfords commented: “Digital legacy is a further example of the firm adapting to the ever-changing needs of our clients. As lawyers, we have a responsibility to constantly look at innovative ways in which we can make things easier and more cost effective for our clients whilst continuing to provide the highest level of advice. Digital legacy is just one of a number of products we have in development for our private and business clients.”

Global ComplianceWealth Management

Sparta Global announces appointment of Andy King as Managing Director

Sparta Global, a leading provider of technology and business services, today announces the appointment of Andy King as its new Managing Director. Andy joins Sparta Global following the opening of its new Head Office at 125 London Wall and £4m equity investment from Private equity house Key Capital Partners (KCP) to support its continued growth and expansion.

With his new position as Managing Director at Sparta Global taking full effect from 10th April 2019, Andy will assist with the attraction, training and deployment of highly skilled graduates in blue chip organisations – reporting to David Rai, Co-Founder and Chief Executive Officer of Sparta Global.

As former UK & Ireland Managing Director of FDM Group PLC, Andy and his team were responsible for a total revenue of £106.7m (circa 52% of total group revenue) and more than 1800 consultants deployed with clients across the UK. Additionally, he was responsible for overseeing and implementing new academies across the UK. Before his 10-year tenure at FDM Group PLC, Andy was the Global Head of Testing at Barclays Wealth for 5 years.

David Rai, Co-Founder and Chief Executive of Sparta Global, says; “Attracting someone of Andy’s calibre, track record and growth potential to Sparta Global is incredibly exciting. Andy is a highly motivated individual with extensive experience managing and leading global teams across sectors such as investment banking and the public sector. His proven track record in sales, graduate recruitment, training, mentoring and programme delivery – combined with a positive attitude and passion to drive a successful team – makes him an ideal fit for Sparta Global.”

Of his appointment, Andy King says; “I am hugely excited to be joining Sparta Global at such a key stage in its growth and development. Sparta Global has built a strong platform in the UK with Academies in London, the Midlands and North of England, fulfilling the growing UK-wide demand for diverse, highly skilled and dynamic technology professionals. I look forward to working with the exceptional team at Sparta Global and giving our clients the tools to power technology projects across a diverse range of industries”.

Foreign Direct InvestmentHigh Net-worth Individuals

Puzzel receives growth investment from Marlin Equity Partners

Puzzel, a leading European omni-channel cloud contact centre software provider, today announced the completion of a majority recapitalisation and growth investment from Marlin Equity Partners (“Marlin”), a global investment firm with over $6.7 billion of capital under management. Puzzel’s best-in-class, multi-tenant cloud contact centre as a service (“CCaaS”) platform allows clients worldwide to manage and optimise their customer interactions across voice, email, chat and social media platforms.

“Puzzel’s leading position in the market, knowledgeable employees and pioneering technology platform positions us well to successfully scale our business,” said Børge Astrup, CEO of Puzzel. “Marlin has a proven track record of supporting and partnering with high-growth software businesses and we look forward to working with them to execute our strategic plan to accelerate growth, bring new and added functionality to our customers and expand into new markets.”

“In Puzzel, we saw a business with a comprehensive omni-channel CCaaS solution that is both scalable and flexible, and designed to support contact centres of all sizes,” said Mike Wilkinson, vice president at Marlin. 

“The company has experienced tremendous growth across Europe that is being further fuelled by feedback and advocacy from market-leading customers. We are excited to partner with an exceptional management team to seek new partnerships, invest in new opportunities to enhance the product suite and expand the company’s geographic presence.”

About Puzzel
Puzzel is a leading cloud-based contact centre software provider and one of the first pioneers to develop a cloud-based contact centre offering. Today, Puzzel combines its omni-channel technology with artificial intelligence capabilities to provide comprehensive, end-to-end customer interaction solutions in an age of digitisation. Puzzel was named a Challenger in the 2018 Gartner Magic Quadrant for Contact Centre as a Service, Western Europe, Report 2018 for the fourth consecutive year for its strong growth, functional capabilities, strengths in standards and compliance, customer service and support. The company is headquartered in Oslo, Norway, with offices in six European markets including the U.K. For more information, please visit Puzzel.

About Marlin Equity Partners
Marlin Equity Partners is a global investment firm with over $6.7 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthen a company’s outlook and enhance value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 140 acquisitions. The firm is headquartered in Los Angeles, California with an additional office in London. For more information, please visit Marlin Equity

OffshoreWealth Management

How to choose the right country for opening a company

How to choose the right country for opening a company 

The world we live in today has made it quite easy for most of us to start our own company. The Internet has created a lot of new business opportunities and ideas which can be successfully put to use and to the benefit of others. With so many options, choosing the country to set up a business in is one of the most important challenges.

Selecting the country to open a company depends on the money one is willing to invest, the industry or the profession of the business person and, of course, the legislation in that particular country. Plus, one also needs to consider the many frauds which have developed along with the appearance of the Internet. One must always consider asking for legal advice from a criminal defence lawyer, if confronted with a possible fraud.

Let’s see what one should consider in terms of country of choice when deciding to start a business.

Taxation is essential when opening a business

Most business persons consider taxation as one of the most important aspects when choosing a country to start a business in. There are onshore and offshore destinations, if we are to categorize countries from a taxation point of view; however, there are also countries which provide for low taxes just as offshore states. For example, large companies can decide to set up subsidiaries in Labuan, one of the most important offshore jurisdictions in Malaysia, while benefiting from a very good taxation system.

Offshore jurisdictions are still preferred by many investors

Offshore countries remain among the preferences of many foreign entrepreneurs who consider they can reduce their taxes and ensure a higher degree of confidentiality if they decide for such a jurisdiction. Let’s take Seychelles, for instance: setting up an offshore company in Seychelles will definitely offer a good protection when it comes to the assets of the owner, if one chooses this business form. Investors can also decide to open onshore companies and complete activities just like in any other onshore jurisdiction.

Going for traditional country

There are also entrepreneurs who decide to go the old-fashioned way and settle their companies in traditional countries with well-established regulations. These are usually European countries, such as Germany, France, Spain and Italy which have evolved a lot in the last few years, especially in accommodating the needs of the new generation of investors which rely on new technologies. Those who decide to operate in Italy, for example, are advised to use the services of a local law firm in order to integrate their businesses under the legal requirements of the authorities here.

No matter the country one decides for setting up a business, what matters in the end is for that country to answer the needs of entrepreneur, while his or her products or services answer the needs of the clients in that country.

Wealth Management

Which liquidation option is best for my business?

If you reach the crossroads of having to close down your insolvent business or solvent business, you may explore liquidation to settle your financial affairs and repay creditors. Depending on the financial state of your business, including the strength of your cash flow and balance sheet, this will determine your next step which will either be a Creditors’ Voluntary Liquidation (CVL) or Members’ Voluntary Liquidation (MVL).

If you are deep in the process and you are unable to respond to creditor demands or come to an agreement, the creditor may apply for a petition to wind up your company. If granted by the court, your business could be forced into liquidation, writes Keith Tully of Real Business Rescue. Following the appointment of a licensed insolvency practitioner, here are the two liquidation options you can explore.

Creditors’ Voluntary Liquidation: As indicated in the name, a Creditors’ Voluntary Liquidation is voluntary action against an insolvent business as it can no longer keep up with payments. In order to safeguard the business from legal action and to protect the best interests of creditors, a CVL may be the most financially suitable option for your struggling business.

What happens in a Creditors’ Voluntary Liquidation?

In order to successfully initiate a Creditors’ Voluntary Liquidation, you will be required to appoint a licensed insolvency practitioner. As the action is voluntary and not forced upon, the shareholders will be in control of appointing an insolvency practitioner.

A Creditors’ Voluntary Liquidation will result in assets to be realised in order to repay outstanding debts to creditors. Before doing so, all shareholders will have to be in mutual agreement that the business is insolvent and that a CVL is the most appropriate form of action. You will be required to contact creditors to inform them of the company’s financial position and share an estimation of the assets held by the business. Each asset will require an individual valuation and should not be undervalued. If a director is interested in purchasing assets belonging to the business, this can only be conducted through an insolvency practitioner and should be sold at market value.

As the insolvency practitioner will be in control of the business, they will also be responsible for handling employee claims. An investigation will take place to ensure that the company director acted fairly and dutifully. If the director neglected directorial responsibilities, they could face disqualification and even be held personally liable for the debts of the business.  

Members’ Voluntary Liquidation: A Members’ Voluntary Liquidation (MVL) is a suitable closure option for a solvent business which will allow you to shut the business down in a cost-efficient manner. This is an effective exit planning tool for a profitable company which has reached the end of its lifetime, such as in the event of director retirement.

This option is only suitable for a solvent business which is able to settle liabilities within 12 months. An MVL is appropriate for businesses with retained profits of £25,000 pounds or more. If the business holds less, it may not be financially viable to opt for a Members’ Voluntary Liquidation as there are costs involved which may set your business back. This includes payment for an insolvency practitioner, costs for legal notices such as a Gazette notice and financial protection for company funds typically determined by asset value.

Prior to an MVL, all financial obligations should be settled, including debtors chased and funds collected. All HMRC liabilities should be paid, including the submission of HMRC accounts and documents. After carrying out due diligence, your intention to close the company will be advertised on the Gazette, making it public knowledge which is when outstanding creditors will be invited to submit any claims. After clearance from HMRC, company funds will be distributed amongst shareholders and the company will be dissolved which refers to the removal of the company record from Companies House.

Compulsory Liquidation: This process will begin after a creditor brings forward a winding up petition for your business if standard methods of recovering money have failed. Compulsory liquidation essentially forces the company to liquidate assets so they can be sold and proceeds distributed to creditors. If you are in debt of £750 or over, the court will be able to force your business into liquidation.

  • Statutory Demand: A statutory demand is a formal request for outstanding payments to be made. If you have been issued with a statutory demand and the 12 day repayment period has passed, your business could be forced into liquidation
  • County Court Judgment: An unpaid County Court Judgment (CCJ) can also result in compulsory liquidation. A CCJ is a court order granted against you if you fail to respond to court action. This is a serious form of action as if a CCJ is issued; this will remain on your record for six years, hindering your chances of qualifying for finance, including a mortgage

Following the liquidation of the business, the company will be struck off the Companies House register, resulting in the dissolution of the business. This option is not voluntary as it will be forced upon by the court following a formal request from creditors.

The key difference between a CVL and MVL is that a CVL is a tool for an insolvent business and an MVL is a tool for a solvent business. If you are in the process of making this decision, it is important to move forward in a fast and efficient manner as you may be prone to being hit with legal action from creditors during this time period. As such, liquidation can give you sufficient breathing time to get your affairs into order. If you are in the position where you are considering the liquidation of your business, it is best to seek advice from a licensed insolvency practitioner to ensure you close your business in a tax efficient and legal manner.

This advice column was written by Keith Tully, a specialist in business turnaround and recovery at Real Business Rescue.

High Net-worth Individuals

Netflix expands global customer care with Teleopti’s flexible, cloud-based Workforce Management solution

Teleopti today announced that Netflix, the world’s leading provider of online entertainment and streaming services, has selected the company’s strategic, cloud Workforce Management (WFM) suite to increase the flexibility of staff planning and support complex, global customer service operations.

With 139 million memberships in over 190 countries, California-based internet entertainment service Netflix has embarked on a new journey toward customer service planning in the cloud. Netflix will use Teleopti’s dynamic WFM solution to support, schedule and empower more than 5,700 customer representatives at contact centers across the globe. As Netflix continues to expand its worldwide footprint, with customer support spanning multiple time zones and numerous languages, the need arose to revolutionize its workforce scheduling and management processes.

Fred Senerchia, Global Head of Workforce Management at Netflix remarked, “Teleopti provides a cloud solution that closely aligns with our business vision and goals for the future. As we continue to expand our CS footprint worldwide and grow our team of multi-skilled frontline representatives, it’s imperative that we have a workforce management software that solves for the increasing complexity of forecasting and scheduling agents across several different regions, time zones and languages. We believe Teleopti will meet those needs as we partner together on a global implementation of the software.”

Netflix has selected Teleopti’s cloud-based Advanced WFM package providing features to meet key areas of need, including real-time monitoring and adaptivity, intuitive employee engagement tools and the ability to quickly scale up operations to meet business growth. Alongside a fully-supported deployment and post-implementation training to ensure WFM success, Netflix will have access to a test environment to continue optimization within their own realm of data.

David Pahlman, President of Teleopti North America concluded, “Our WFM technology enables strong enterprises like Netflix to handle large-scale, complex operations while maintaining ease of use and adaptability. The goal of our cloud-based technology is to simplify business operations at a global level. We’re excited to welcome Netflix to our community of great customers.”

High Net-worth Individuals

Cloud Foundry 2019 North American Summit Begins in Philadelphia, Announces Project Eirini Ready for Early Adopters

 

Cloud Foundry Foundation, home to a family of interoperable open source projects for the enterprise, opened its North American Cloud Foundry Summit in Philadelphia, Pennsylvania today, with news from organizations including Engineer Better, IBM, Pivotal, Resilient Scale, SUSE, Stark & Wayne, Swisscom and many others. The 2019 North American Summit is taking place today through April 4 and is supported by Diamond sponsors Comcast and Pivotal, and Platinum sponsor IBM Cloud.

“We are excited to host Summit on the east coast again this year,” said Abby Kearns, Executive Director, Cloud Foundry Foundation. “This Summit will be focused on celebrating the momentum of our community, highlighting stories from open source contributors and Cloud Foundry users, as well as providers, integrators and service providers. This year’s Summit theme is ‘building the future’ which is exactly what our community is committed to doing.”

The Foundation announced findings from its most recent Global Perception Study in a report titled “Adaptation, Not Adoption, is the Key to Digital Transformation: Why IT Strategy Requires a Perpetual State of Change.” With more than half of companies surveyed putting mission-critical apps in the cloud, it’s clear that digital transformation is the new reality, and that companies must adapt to constant change to keep up.

The Foundation is pleased to announce Project Eirini is now passing the core functional tests that validate Cloud Foundry Application Runtime releases, with future work focused on production readiness and testing against hosted managed Kubernetes environments from various public cloud providers. Initially proposed by IBM, Eirini has full-time engineers from Google and Pivotal working on the project, in addition to continued contributions from IBM, SAP and SUSE. The software is now mature enough that early adopters have begun to deploy it into production environments. At the EU Summit in 2018, Cloud Foundry Foundation announced Project Eirini’s acceptance as an incubating project by the Application Runtime Project Management Committee, which oversees projects associated with the Cloud Foundry Application Runtime and their coordinated roadmaps. Eirini works to provide developers with the “cf push” experience that makes it easy to push an app to production on top of Kubernetes.

The Foundation is also pleased to announce its first two Certified Systems Integrators, following on the program’s launch in October at the European Summit. Each with at least ten Cloud Foundry Certified Developers on their teams, Accenture and HCL have demonstrated contributions to the Cloud Foundry community through contributing code, hosting meetups, Foundation membership and more. The Certification program is designed to help SIs, consultancies and professional services organizations highlight their expertise working with the Cloud Foundry family of technologies.

Foundation member news includes:

A collection of Foundation members, including Resilient Scale, Stark & Wayne and SuperOrbital, in addition to TechFlow, have joined together to form the Continuous Delivery Alliance. The Continuous Delivery Alliance aims to fix the DevSecOps challenges in government from contracting through implementation by bringing together a collective of professionals with deep expertise in technology and government contracting. The Alliance offers unparalleled expertise in technologies including Cloud Foundry, Kubernetes, AWS, Azure, GCP and practices like continuous integration/ delivery and DevSecOps.


Altoros has released new versions of the Pivotal Cloud Foundry (PCF) tiles for Jenkins, Elasticsearch, and Cassandra, upgrading BOSH stemcells and existing integrations. The updated Xenial stemcells help avoid exposure to security vulnerabilities, while integrations with new versions of products will enable enterprise users to enjoy the features of the latest stable releases. In April, migration to Xenial stemcells for the six PCF tiles created and maintained by Altoros, including an upcoming new release of the Heartbeat Cloud Foundry monitoring, will take place. PCF tiles are packaged tools that can be integrated into Pivotal Cloud Foundry, enabling developers to use third-party services.


Anynines announced the release of release of a9s Platform, a fully automated platform distribution comprising open source Cloud Foundry and the a9s Data Services, as well as on-demand Kubernetes. The platform allows users to leverage open source technologies to bootstrap fully automated production grade platform environments. Technical support and remote operation options are available. EngineerBetter announced that “Control Tower” is the new name for “Concourse-Up,” the company’s enterprise tool for deploying and operating Concourse CI in a single command. Concourse CI is used heavily throughout the Cloud Foundry ecosystem. With its new name, Control Tower will be available through new distribution channels and brings with it new features including Google Cloud Platform support and full support for Concourse 5.


Evoila announced new service brokers, which provide software systems such as databases, message queues or log aggregators with standardization to speed up software development. The service brokers make it possible to run two environments, such as Cloud Foundry and Kubernetes, next to each other and share their service instances. The Open Service Broker API 2.15 will soon provide a higher independence of special platforms and improve asynchronous ordering processes. By developing these new service brokers, evoila is further expanding its commitment to the standardization of complex processes. Grape Up announced its flagship product Cloudboostr can now be deployed on OpenStack. Integration with the new cloud infrastructure unlocks a broad range of opportunities for companies using on-prem OpenStack. Cloudboostr provides a complete enterprise-grade cloud stack ready in days, gives the freedom to choose the best suitable runtime for any needs, and reduces the risk of upgrade compatibility issues and the complexity of applying patches.


IBM announced the launch of an Eirini-based technology preview of its Cloud Foundry Enterprise Environment, available for self provisioning. IBM Cloud is working to simplify development and operations by bringing together Cloud Foundry, Kubernetes, and Functions under one management umbrella to enable development teams to spend their valuable time coding to solve business problems. A major step towards that goal is Project Eirini, where IBM is leading the effort alongside other Foundation members SUSE, SAP, Pivotal and Google, to bring native, pluggable Kubernetes application container scheduling to Cloud Foundry. IBM is supporting Project Eirini to bring coordinated operations of Cloud Foundry application containers and those created by other means to the same Kubernetes cluster. This allows for easy and more secure communications between Cloud Foundry and Kubernetes applications, and unlocks the vast ecosystem of Kubernetes tooling and capabilities to both the Cloud Foundry developer and administrator. 


Packet announced an Edge Access Program, providing commercial and open source users with free access to edge computing building blocks at a diverse range of venues and locations. Resources include API-driven x86 and Arm bare metal compute infrastructure; automated cloud interconnect to Azure, GCP and other public cloud ecosystems; and CBRS wireless through Federated Wireless. 


Pivotal announced the release of Pivotal Cloud Foundry 2.5, a collection of enhancements to its flagship application platform, including weighted routing, a new feature enabled by Istio and Envoy. 


Stark & Wayne announced the launch of their managed service cloud solution for Pivotal Cloud Foundry and other cloud native technologies. Benefits to managed service subscribers include lower operational costs, a greater focus on app development, faster time to market, and accelerated feedback loops, which leads to faster problem resolution and higher quality end products. Stark & Wayne also announced SHIELD v8.1, now in Tile form, for PCF Operations Manager customers. SHIELD is a flexible and secure data protection solution for cloud data systems. Built on AES-256 encryption with randomized keys, and leveraging native backup / restore mechanisms like Percona Xtrabackup and BBR, it allows operators to sleep well knowing their critical data is protected.


SUSE announced SUSE Cloud Application Platform 1.4, the first software distribution to introduce Cloud Foundry Application Runtime in an entirely Kubernetes-native architecture, will be available in April. SUSE Cloud Application Platform 1.4 includes a technology preview of Project Eirini that allows operators to take greater advantage of the widely adopted Kubernetes container scheduler. The new Kubernetes-native Eirini implementation deepens integration of Kubernetes and Cloud Foundry, further bringing the advanced Cloud Foundry developer experience to Kubernetes environments and giving users the ability to choose either Kubernetes or Diego as their container schedule. Whether customers choose Kubernetes or Diego, the developer experience is the same. SUSE Cloud Application Platform 1.4 furthers SUSE’s commitment to supporting customers’ multi-cloud environments by adding support for Google Kubernetes Engine (GKE), Google’s managed Kubernetes service, in addition to existing cloud support for Amazon EKS and Azure AKS, on-premises support with SUSE CaaS Platform, and multi-cloud support bridged by the Stratos UI.


Swisscom announced new features of the Swisscom Application Cloud: true security with encryption plan for S3 dynamic storage and auto-scaling of applications based on the Cloud Foundry Platform Application Cloud from Swisscom. Swisscom continues to enhance its cloud with upcoming new features are waiting to be announced, which will be developed and made available by the strong commitment of the community.
TIBCO its market-leading API management platform, TIBCO Cloud(TM) Mashery, is now cloud native. The platform can now be deployed anywhere, including certified support for PKS to make Kubernetes deployments easy, and integration with DevOps tooling even easier. TIBCO also released new capabilities to create cloud native integration apps via its API-led integration offering TIBCO Cloud(TM) Integration and BusinessWorks(TM) Container Edition for Cloud Foundry Container Runtime and Pivotal Cloud Foundry 2.x.

Enterprise developers, architects, engineers and executives from around the world are expected to attend the Philadelphia Summit. Attendees will learn about Cloud Foundry from those who build and use it every day. They will join other developers, end users and CIOs to gain first-hand access to Cloud Foundry roadmaps, training and tutorials, and to see how others are using Cloud Foundry to support continuous innovation and application portability.

Today the first-ever Contributors Summit takes place to foster community among open source project contributors and enable technical roadmap discussions. Tuesday’s Hackathon winners will be announced on-stage during Thursday morning keynotes.

On Thursday, Cloud Foundry Foundation will host its annual diversity luncheon at Summit, which will feature a diverse line-up of speakers and panelists discussing digital accessibility, advocacy and mentorship, gender equity and more. This event is co-sponsored by IBM Cloud and the Cloud Native Computing Foundation.

Find the full schedule here.

Cloud Foundry is an open source technology backed by the largest technology companies in the world, including Dell EMC, Google, IBM, Microsoft, Pivotal, SAP and SUSE, and is being used by leaders in manufacturing, telecommunications and financial services. Only Cloud Foundry delivers the velocity needed to continuously deliver apps at the speed of business. Cloud Foundry’s container-based architecture runs apps in any language on your choice of cloud — Amazon Web Services (AWS), Google Cloud Platform (GCP), IBM Cloud, Microsoft Azure, OpenStack, VMware vSphere, and more. With a robust services ecosystem and simple integration with existing technologies, Cloud Foundry is the modern standard for mission critical apps for global organizations.

 

Cash ManagementForeign Direct InvestmentPrivate FundsStock MarketsTransactional and Investment Banking

Can You Predict The Future Price of Bitcoin?

You can’t spend five minutes reading about cryptocurrencies without stumbling across at least one prediction for the future price of Bitcoin.

Across forums, social media, newsletters, blogs, news sites and every other corner of the internet — financial analysts, expert investors, bankers, tech icons, and new enthusiasts offer up their views.

Some cite careful analysis, some base it on past trends. While others are guessing or acting on their ‘intuition.’ Their predictions are varied, ranging from a plummet to zero, to millions.

With all this noise surrounding the Bitcoin price, you might be wondering whom to believe. Or if you should believe anyone at all. Is it possible to predict the future?

Investing begins with education, not buying. So it’s important to think about the information you base your buying decisions on.

How do people make price predictions?

There are two types of analysis used for predictions: fundamental and technical.

They’re used for everything from the stock market to Bitcoin. While other types of analysis do exist, these are the main ones.

Fundamental analysis

Fundamental analysis is all about intrinsic value. You look at the factors that give something value, then decide if it’s under or overvalued. Publicly traded companies release lots of information to help with this. So, for a stock you might look at a company’s:

  • Revenue (how much money it’s making)
  • Profit margins (how much of the revenue is profit)
  • Growth potential (how much money it could make in the future)
  • Management (how competent the people in charge are)

Some of these factors can be defined in numbers. Others come down to the judgement of the analyst.

For a cryptocurrency, you might look at its:

  • Price growth (how the price has grown over time)
  • Scalability (if it has the potential to keep growing)
  • Security (if the network is secure and safe from attacks

​Technical analysis

Technical analysis is different as it focuses on an asset’s price, not the asset itself. Maybe you’ve heard the phrase ‘past performance is not an indicator of future performance.’ But technical analysis bases future predictions on the past. This can be based on a short time frame (hours or even minutes) or long (months or years.)

To do this, you look for patterns and trends in price charts, such as:

  • The average price over a chosen time span
  • The price at which a lot of investors start buying
  • The price at which a lot of investors start selling
  • The overall price trend

Do fundamental and technical analyses work?

There’s no straightforward answer to that question. Both techniques can be useful, but they also have their limitations for cryptocurrencies.

Fundamental analysis works when investors base their decisions on fundamentals. This isn’t always the case for Bitcoin. Many investors base their decisions on the decisions they expect others to make.

Technical analysis assumes that a market follows rational rules and patterns. It’s less useful for cryptocurrencies because the market is still young. There isn’t as much past data to analyse. Cryptocurrencies also have less liquidity than something like stocks.

Self-defeating and self-fulfilling prophecies

When we talk about price predictions, we run into an important concept: self-defeating and self-fulfilling prophecies.

Making a prediction about the future can end up changing what actually happens.

The prediction about the future creates the future.

This isn’t the case when we talk about a system like the weather because we can’t change it.

But when you make predictions for a system involving people, it’s different.

Hearing predictions can cause people to change their behaviour.

Sometimes this happens in a way that prevents the prediction from coming true — a self-defeating prophecy — or it can cause the prediction to come true — a self-fulfilling prophecy.

Predictions about cryptocurrency prices have the power to influence how investors act. If it’s predicted the Bitcoin price will increase, this encourages more people to buy. This can drive up the price, and vice versa.

That brings us to incentives.

The issue of intentions

Incentives are what motivate people to do what they do. It’s an important concept in investing. Financial gain is a powerful driving force.

Most investors understandably want to do whatever will make them the most money. This can include making predictions that benefit them.

Let’s say you come across an article where the author claims Bitcoin will be worth $100,000 by December 1st 2019. Rather than taking that at face value, it’s important to ask: why are they saying this? If they know for certain, why don’t they put all their money into Bitcoin, and make a huge profit? Why are they sharing that information?

Likewise, if someone claims Bitcoin will drop, you might wonder why they’re saying that. If they know for certain, why don’t they keep quiet, short it, and make a big profit?

In both cases, we need to consider the underlying incentives.

If someone stands to profit from the Bitcoin price increasing, it’s natural they’ll predict it’s going to do that. They’re hoping this will turn into a self-fulfilling prophecy. If someone stands to benefit from it decreasing or to suffer if it increases, it’s not unexpected that they’ll predict it’s going to decrease.

Luck and probability

But if no one can predict the future, how come some people do make correct predictions?

Maybe you heard that your brother’s roommate’s cousin’s coworker’s uncle correctly predicted the price of Bitcoin. Or you’ve seen someone on Youtube who seems to always get it right.

The fact that no one can predict the future doesn’t mean no one can make correct predictions.

It comes down to luck, probabilities, and information asymmetries.

First, luck. Every day, thousands of people make predictions about Bitcoin prices. It’s inevitable that some of them will be correct by luck.

As they say, even a stopped clock is right twice a day. With so many people making predictions, it’s likely a percentage of them will be correct.

When professional forecasters make predictions, they usually base them on probabilities. What’s the most likely outcome? A weather forecaster might say it’s going to rain tomorrow because there’s a 62% probability. They don’t know it for sure. It’s just more likely than not.

Then there’s insider information. If you know something most investors don’t, you have a big advantage. For example, if you have insider information that Apple is about to release a new product, it’s reasonable to expect the stock will go up. But other investors buying Apple stock aren’t aware of that information, so they can’t predict it.

Insider information is less meaningful for cryptocurrencies. There’s a less direct link between fundamentals and prices. Events that seem like they should cause an increase or decrease can do the opposite or nothing.

Conclusion

The next time you look at a cryptocurrency price chart, imagine a crowd of people in a stadium, all moving at different times but appearing to create an organised rippling motion. Because that’s what you’re seeing: the combined actions of many people.

There’s no mystical, secret order to it. There’s just lots of people making decisions based on the information they receive.

Cash ManagementFundsRisk ManagementWealth Management

Samuel Knight International on track to continue major growth following investment

Samuel Knight International, the global recruitment and project man-power specialist headquartered in Newcastle, has announced significant investment from Gresham House Ventures. Samuel Knight, which was established in 2014 and has offices in London and Bristol, provides skills and energy solutions to the energy and rail sectors on a permanent, contract and temporary basis.

The company has demonstrated impressive growth since its formation. Last year, it achieved £13m turnover and took home ‘Team of the Year’ at the Great British Entrepreneur awards. 2018 also saw Samuel Knight securing major new client contracts in more than 30 countries, boosting headcount and expanding the business to accommodate business growth.

The growth capital investment from Gresham House Ventures, using funds from the Baronsmead Venture Capital Trusts, will fund Samuel Knight’s near-term growth plans. These include increasing headcount at the offices in Bristol and London and adding local talent to the Newcastle team, from entry level graduates to experienced consultants. The company is also planning international expansion with the potential acquisition of two sites abroad.

The recruitment drive is geared up to support expansion across the energy and rail space given increasing demand from clients and candidates. Samuel Knight is focusing on achieving greater market share and boosting awareness of the brand through targeted marketing and business development. The investment will also allow Samuel Knight to further invest in technology to continue innovation within the business.

Steven Rawlingson, CEO at Samuel Knight said: “We have a clear vision of what we want to achieve with the investment, and how this will help us to support commercial goals. We are delighted to have secured the funding from Gresham House Ventures, who share in our ambition and vision to grow the business. The investment will enable us to strengthen our global offer, expansion plans and team growth.”

Paul Kaiser, Katy Lamb and Michael McCulloch from UNW LLP provided financial advice to Samuel Knight International.

Katy Lamb, Senior Corporate Finance Manager at UNW who led the transaction said: “Having worked with the business since late 2017, helping management prepare for the investment, we were delighted to advise on the finance raise and have enjoyed working with such a dynamic, fast-growing business. It’s also great to see investment into the North East.”

Steve Cordiner, Director at Gresham House said: “Steven and the Samuel Knight team have done a fantastic job in growing the business so rapidly in such a short time period and we are proud to be partnering with such an ambitious team. There is huge scope for Samuel Knight to expand globally and we look forward to supporting the business on this phase of its journey.”

Anthony Evans, Adam Rayner and Harry Hobson from Muckle LLP provided legal advice to Samuel Knight International.

Shoosmiths LLP provided legal advice to Gresham House and Dow Schofield Watts provided the financial due diligence.
The Gresham House Ventures team invests equity of up to £5m in growth businesses, supporting founders with bold ambitions for the future, whilst providing transformational capital and expertise to accelerate business potential.

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Underestimating the digital wealth start-up threat

A recent report from GlobalData found that only 10% of wealth managers perceive robo-advisors as an immediate threat.  With the entire financial industry racing towards widespread digital adoption, it begs the question – shouldn’t they be more worried?John Wise, CEO, Co-Founder and Chairman of InvestCloud investigates.

The biggest mistake wealth managers are making is holding on to the long-standing belief that robo-advisors will only serve the lower retail market. This is the same mistake ‘brick and mortar’ stores made in sizing up Amazon as a threat; they fail to appreciate the competitive advantage a digital platform has.

Many high earners are turning to robo-advisors and digital processes for a better return on their portfolio. A recent survey from InvestCloud found that 49% of investors are using mobile apps to manage their wealth. A further 48% are using a firm’s digital offerings as a key differentiator when choosing their manager. As investors continue to be more digitally savvy, this will certainly increase.

As things stand, digital can feel like the enemy to traditional wealth managers.

The need for hybrid wealth management

What many wealth management firms are failing to recognise is that it doesn’t have to be one or the other. By deploying a hybrid model of digital and traditional services, these firms can compete successfully in this changing digital environment.  

Traditional ‘brick and mortar’ wealth managers are faced with two key challenges today. The first of these is the well-documented fee compression. The second is the transfer of wealth from aging boomers to younger, more tech savvy and less financially educated generations – Generation X, Millennials and – soon – Generation Z.

At this inflection point, everyone has one question on their mind: How are firms going to attract new clients and retain existing ones in a cost-effective manner? 

The hybrid model of human and digital advice means advisers can use cost-effective technology from the robo space and combine it with differentiated and engaging client experience. This will be key to serving younger demographics. Hybrid advisors will be able to scale like a robo-adviser, being able to serve more clients, while ensuring continued engagement with existing clients through face to face interactions and digital empathy tools.

This change is already happening. Those who can see it as an opportunity and not as a threat will have the upper hand.

Creating a truly personailsed digital service

 

While automation plays a critical role in increasing a firm’s profitability, it is only one side of the equation. Clients will measure the quality of a service by what they see, so continually improving the quality of their digital experience is critical.

When an adviser cannot speak and interact with clients face-to-face, it can often be difficult to create and maintain a strong relationship that keeps a client sticking with your business. Instead, advisers need to create the same level of service online. Financial institutions instead need to build digital relationships, where each client can be engaged on their own terms.

This is why the digital experience is so important. It is not just about providing online services – wealth management clients also require a truly personalised, beautifully designed, intuitive and easy-to-work-with platform that caters to all their individual needs.

But this should not be one-sided. The client and adviser portals need to be directly linked, so the adviser can see what the client is looking at, or even influence the dialogue remotely using chat, video or direct messaging. This way, advisers can deliver complete personalisation.

The importance of data

Firms can not solely focus on the client-facing aspects of their business. Looking behind the scenes is equally important.

Getting information correct and accessible is key to success when operating at scale. Adopting a data warehouse is the most important aspect of any digital strategy. Information is power – but only if it is correct, gathered in one place, and is in a structured format.

Many traditional firms fail to appreciate how information from correctly managed data can be leveraged to better serve their customers. To use the Amazon analogy again – the amount of client information they can use from customer profiles is something brick and mortar stores can only dream of.

Using the right digital platform, wealth managers can collect client data, but also monitor how this information changes. For example, they can see which demographic pays closest attention to market changes, or how a client’s investment objective or risk tolerance changes over time.

Those using the right digital platforms can access deep behavioral analytics, which in turn helps them support more clients with less resources. Data in today’s digital environment goes beyond ‘csv’ files to include text, chat, documents, and pictures. Imagine an advisor on a call where the client is asking about a recent capital call transaction. Centralised platforms enable advisors to access all relevant client information, including primary documents from the custodian or fund administrator.  

The last piece of the puzzle is adoption. How are digital platforms helping wealth management firms increase adoption and retain existing clients?

Behavioral science functions combine unique and customisable digital personas. The right platform will allow financial institutions to connect with all their clients, despite vast differences in wealth, age, outlooks, and all the numerous facets that make them unique. Digital engagement requires human empathy, and personalised platforms can make each user feel  that their financial concerns are understood, whether they are Baby Boomers, Generation X or Millennials.

These elements are what constitutes a great overall digital strategy in 2019. Armed with the right tools, advisers will have an advantage over the robo advisers.

This is the holy grail of hybrid wealth management: Automated digital processes combined with the advantage of human insight. Being able to undertake ad hoc tasks for clients or difficult-to-do exercises that are a challenge, can now be automated with the click of a button. Digital empathy – expressed through the right tools – will set you apart. Longer retention, higher AUM growth and improved quality and operational efficiency all await.

With the right digital strategy, robo advisers have nothing on you.

ArticlesCash ManagementWealth Management

The 5th Money Laundering Directive; mandating the use of electronic verification

Money launderers using increasingly sophisticated methods of moving illegally-earned cash through criminal networks. In response, anti-money laundering (AML) law is constantly evolving, and successive legislative updates reflect the EU’s determination to keep pace.

Following the Panama Papers, Paris and Brussels terrorist attacks, the 5th Money Laundering Directive – published in the European Journal in June 2018 – made some important amendments in an attempt to counteract terrorist financing and increase the transparency of financial transactions.

One of the biggest changes was the stipulation that electronic verification is used when undertaking Customer Due Diligence and Know Your Customer procedures.

Member states will have until late 2019 to implement the 5th Money Laundering Directive. As we know, the UK is due to leave the EU on March 29, but the UK Government has already committed to implementing the Directive to ensure its position as a major international financial player.

Electronic verification must be used where possible

Regulated businesses have always been able to use electronic verification as either an alternative or supplementary to traditional documents such as passports, driving licences and utility bills. But with the 5th Directive now stipulating that electronic verification is used where possible, regtech has been thrust into the spotlight.

The preamble to the Directive reads: “Accurate identification and verification of data of natural and legal persons are essential for fighting money laundering or terrorist financing. The latest technical developments in the digitalisation of transactions and payments enable a secure remote or electronic identification”.

It then goes on to state the following “Those means of identification as set out in Regulation (EU) No 910/2014 of the European Parliament and of the Council should be taken into account, in particular with regard to notified electronic identification schemes and ways of ensuring cross-border legal recognition, which offer high-level secure tools and provide a benchmark against which the identification methods set up at national level may be checked. In addition, other secure remote or electronic identification processes, regulated, recognised, approved or accepted at national level by the national competent authority may be taken into account”.

While not all European countries have electronic identification solutions, the UK has a long-standing acceptance of such methods of identification and as a result, leads Europe in terms of regtech. In fact Of the 60 European companies on the RegTech 100 list, half were from the UK, up from 26 last year, which shows just how dominant the UK is in this sector and how much it is growing.

Commercial PEP and Sections solutions needed

The Directive also requires member states to produce lists of politically exposed persons (PEP). However, these lists will not give specific names, just the position of these individuals, which means there will still be the need for commercial PEP and sanctions platforms that collate and maintain these databases.

New Central Registers of Beneficial Owners

The UK has always tended to “gold plate” the money laundering directives when enacting them into legislation, but this has not been the case with many other European members; under the 5th Directive, this will have to change. Following the 5th directive, member states must create central registers of beneficial owners and must allow a clear rule of public access so that third parties can establish who the beneficial owners of corporate and other legal entities are.  

Art dealers now come under AML regulations

Another interesting change under the 5th Directive brings in new business sectors for the first time including art dealers dealing with transactions over 10,000 EUR, all forms of tax advisory services and estate/letting agents where the monthly rent is 10,000 EUR or more.

Tougher rules on Virtual Currency Exchange Platforms and Custodian Wallet Providers

One of the ‘increasingly sophisticated’ methods launders use to facilitate terrorist financing and money laundering is virtual currencies.

In response, the 5th Directive stipulated that virtual currency exchange platforms (VCEP) and custodian wallet providers (CWP) will now have to register with national authorities, undertake customer due diligence, monitor transactions and report suspicious transactions.

It is hoped that as a result of these new regulations FIUs will be able to monitor and detect terrorist financing and money laundering through virtual currencies

The 5th Directive also calls for member states to create central databases comprised of virtual currency users’ identities and wallet addresses.

What happens next?

Member states have to amend their existing legislation or create new laws to bring the 5th Directive changes into force, which in the UK, this means the Government will need to amend the 2017 money laundering regulation which came into force last year or create a whole new piece of legislation.

All regulated firms – those that are regulated now and will be following the changes in the 5th directive – should be aware of these changes and what they mean in terms of their own compliance. SmartSearch can provide a one-stop shop for electronic verification checks – PEP, KYC and sanctions -giving firms the peace of mind that they are meeting all their money laundering regulations.

By Martin Cheek, MD, SmartSearch
FundsMarketsRegulationWealth Management

FTI Consulting Resilience Barometer Sheds Light on Lack of Business Preparedness

At this week’s World Economic Forum (WEF) in Davos, FTI Consulting launched their inaugural 2019 Resilience Barometer which explores how G20 companies are tackling an interconnected, technologically disrupted and increasingly regulated world. Astonishingly, the report has found that whilst companies anticipate challenges, such as cybersecurity and data, they remain largely unprepared.

 

In an age categorised by the WEF as “The Age of the Fourth Industrial Revolution” (4IR), it is more important than ever for G20 companies to be instrumental in supporting societies and governments navigating unavoidable uncertainty and volatility. FTI Consulting’s new report outlines the key challenges we face as we move into 2019 by investigating company preparedness to 18 scenarios which could have a negative impact on turnover, value and reputation.

 

Highlights of the report include:

  • The resilience score for the G20 is only 40 points (out of a top score of 100 points) and turnover has been lowered by an average of 5.1% over the last 12 months, a major cause for concern in an environment that is growing more and more challenging.
  • We have found that the biggest threat to resilience in 2019 is that of ‘cyber-attacks stealing or compromising assets’ and 30% of companies we surveyed said this had happened to them in 2018. Yet whilst 28% of business leaders predict that this will occur to them over the next year, just 45% say that they are taking proactive steps to manage this risk.
  • 87% of companies expect a major crisis in 2019, yet only 4 in 10 are very confident in their ability to manage such a scenario.
  • One-third (1/3) of companies acknowledged that they are not doing enough to keep their data safe.

Kevin Hewitt, Chairman of FTI Consulting EMEA region explained that: “This report looks to identify and unpick the challenges, and opportunities, that companies are facing today as they manage risk and enhance their corporate value. More must be done to ensure sufficient infrastructure and processes are in place to proactively manage business threats in 2019. With significant expertise and experience, FTI Consulting is well placed to help businesses effectively respond in an effective and efficient way.”

 

Following the launch of the FTI 2019 Resilience Barometer, FTI Consulting will be attending the WEF in Davos this week and are available for more in-depth analysis of these results and how FTI Consulting can help your company build resilience and protect value in the face of challenges brought about by the 4IR.

Cash ManagementRisk ManagementWealth Management

YOTHA LAUNCHES WORLDWIDE INNOVATIVE NEW PLATFORM WILL MAKE YACHT CHARTERING SIMPLER, FASTER AND FAIRER

YOTHA, the new digital yacht charter platform connecting owners, charterers and yachting professionals, has launched worldwide with a promise to bring trust and transparency to the yachting market.

YOTHA’s digital technology will make yacht chartering faster, simpler and more straightforward and www.yotha.com will become an invaluable tool for everyone involved in the industry.

YOTHA offers a unique chartering experience, allowing customers to negotiate directly with the owner’s representative, book their trip online and then benefit from a free concierge service which helps them to create their own bespoke itinerary.

More than 100 of the world’s finest luxury yachts are available for charter on the platform, which has launched worldwide for the 2019 season after a beta version was successfully tested last summer. Hundreds more yachts from the global charter fleet will be added to the platform in the coming months.

YOTHA was founded by Philippe Bacou, who has owned and chartered luxury yachts for more than 15 years. Frustrated by his own experiences as an owner, he decided to create a unique digital platform that would enrich the charter experience, shaking up the market in the same way that Booking.com has revolutionised the hotel industry.

By making chartering easier, YOTHA will expand the market and attract a new generation of charterers. Its unique features include:

  • A facility to negotiate the charter price online, supervised by a 24/7 customer care service
  • Substantially reduced commissions – YOTHA takes an 8% commission if a yacht is booked directly through the platform, or 4% if the booking is made through a broker, compared to the standard industry commissions of 15% to the broker and an additional 5% to the central agent
  • A simple, fair electronic charter contract balancing the interests of charterers, owners and professionals
  • All financial transactions secured and guaranteed under the supervision of FINMA, the Swiss banking regulator
  • Partnerships with luxury brands, including award-winning concierge service Quintessentially Switzerland, and leading yacht service providers

YOTHA will encourage more owners to charter their yachts because they will have greater flexibility, including shorter charters and more off-season deals. It will empower their captains, allowing them to connect with charterers through the YOTHA app in advance of their trip to plan the perfect itinerary whilst providing all their favourite food and drink on board.

Amongst the 114 yachts currently registered for charter on the online platform are some of the best-known super yachts in the global fleet, including the 90m Lauren L, the award-winning 50m Vertige and the 55m Mustique. Smaller motor yachts and sailing boats are also available on the platform. Yachts are available for the end of the Winter season in the Caribbean and the upcoming Summer season in the Mediterranean.

Philippe Bacou, Owner and Founder of YOTHA says:

“I am excited that YOTHA now opens the way for the digital transformation of the luxury yachting industry. Our ambition is that our innovative new solution for chartering will improve the customer experience, offer new services and help attract new customers to luxury yachting. We are keen to explore fresh ways of expanding the charter business and want to form partnerships with investors, brokers and other key industry players.”

“At YOTHA, we hope to increase the size of the market both in charter volume and services through in-depth industry co-operation”

“It is an exciting time to be involved in the Yacht charter industry and we hope to improve the experience for everyone involved in the industry: charterers, brokers, agents, captains, crews and owners.”

Private ClientPrivate FundsWealth Management

REDCABIN ANNOUNCES AIRCRAFT CABIN ADDITIVE MANUFACTURING SUMMIT

• Conference takes place from 6 – 7 March at the Etihad Airways Innovation Centre in Abu Dhabi
• Hosted by Etihad Airways Engineering
• Features keynote speeches and interactive workshops from Etihad Airways Engineering, Airbus, Diehl Aviation, Air New Zealand and Lufthansa Technik

BERLIN: Aviation conference specialist, RedCabin, today announces its Aircraft Cabin Additive Manufacturing summit to take place 6 – 7 March at the iconic Etihad Airways Innovation Centre in Abu Dhabi.

Hosted by Etihad Airways Engineering, the summit aims to bring together leading figures from the world of aviation to collaborate and innovate new ways for the industry – and passengers – to benefit from additive manufacturing (AM).

The lifespan of an aircraft, typically between 20 – 30 years, makes maintenance, repair and overhaul (MRO) a key component for airlines that want to keep up with changing consumer trends and evolving technologies. According to a recent Airbus Global Market Forecast, the MRO market in commercial aviation is set to double in the next 20 years to $120 billion – presenting a significant opportunity for 3D printing to reshape aircraft design and maintenance.

The RedCabin summit will host senior executives from the world’s leading airlines, manufacturers, and suppliers of 3D printing solutions to discuss challenges in the aviation industry and formulate new ways to collaborate. Attending this year’s conference are senior level personnel from companies such as Etihad Airways Engineering, Air France KLM, Air New Zealand, Safran, Airbus and ASTM International.

Across two days of keynote speeches, panel discussions and interactive working groups, delegates can network with industry figures and participate in open and honest discussions focussed on ways to support the manufacture and development of AM products, as well as how to accelerate the creation of a standardised framework for certification.

Monica Wick, founder and CEO of RedCabin commented: “Additive manufacturing has huge potential to alleviate supply chain constraints, reduce waste and support the development of new lightweight products – ushering a new era in commercial aviation. The summit represents a vision for a better future, creating a forum for progress whereby those working in the aviation industry can share their knowledge and experiences to support positive change.

“I would also like to give a special thank you to our commercial partner BASF, and our event sponsors: EOS and Stratasys. Their support has ensured RedCabin can continue to be a hotbed for innovation.”

For more information, please visit: https://aircraft-cabin-additive-manufacturing.redcabin.de/

To download the full conference agenda, click here.

Derivatives and Structured ProductsWealth Management

Ted Baker partners with Kickdynamic to drive customer engagement with live, automated and personalized email marketing content.

Global lifestyle brand, Ted Baker, has implemented Kickdynamic’s technology to transform its email marketing and achieve its goal to deliver true one-to-one personalization.

 

Ted Baker, the quintessentially British brand famed for its quirky yet commercial fashion offering and unique, playful storytelling, has partnered with Kickdynamic to offer live, automated and personalized email to their customers. Through this partnership, Ted Baker is reducing its internal manual email build processes, increasing customer engagement and enhancing the performance of its email marketing by delivering relevant content in real-time.

 

Ted Baker has grown steadily from its origins as a single shirt specialist store in Glasgow in 1988 to the global lifestyle brand it is today. It offers menswear, womenswear, accessories and more, and has a physical retail presence in 39 of the 50 countries in which it’s available.

 

The brand has embraced the power of digital marketing, putting the customer and brand experience first in everything it does and its creative freedom allows it to create content that sets it apart from its competitors.

 

 “Our partnership with Kickdynamic allows us to talk to our customers in a targeted, relevant and personal way, at scale and in real time. We have reduced the time it takes to design and build personalised email content, allowing my team to focus on delivering surprising and delightful customer experiences, instead of cumbersome, frustrating and restrictive processes.” Claire Holden, Head of Customer, Ted Baker.

 

“1-2-1 personalization in marketing and especially email has been talked about for a long time. It is not secret that it works, however the manual process of building email has been a long-standing barrier. We are excited that Ted Baker is embracing Kickdynamic technology to remove this manual barrier and move to automation to achieve their email personalization goals.” Matt Hayes, CEO, Kickdynamic.

Real EstateWealth Management

Vent-Axia’s Energy Efficient Ventilation just the Ticket for Luxury Eco Mansion

Picture credit: © Recent Spaces

Leading British fan manufacturer Vent-Axia has been specified as part of a luxurious, £5.5m contemporary off-plan eco mansion in Kent, presently listed with Savills. The Ancona mansion in Hythe is designed to be sustainable and low impact, with three of Vent-Axia’s Sentinel Kinetic High Flow Mechanical Ventilation with Heat Recovery (MVHR) units chosen to provide quiet, energy efficient and effective ventilation and heating throughout the proposed 8,323 square foot home.

Envisaged by developer, Kelly Penson, and designed in conjunction with OnArchitecture working with energy advisors and Passivhaus consultants, Conker Conservation, Ancona is a rare opportunity in the UK to buy a luxury home off-plan. Resembling a Beverly Hills mansion but designed for the British weather, the plans show how a modern build can combine very contemporary aesthetics with sustainable living. The proposed home features cantilevered terraces with wild flower sedum grass roof coverings, three above ground floors, an indoor pool complex and gym, a master bedroom suite with magnificent panoramic sea views and a modern, stylishly-lit wine cellar.

The comprehensive Vent-Axia MVHR system, specified and designed by Built Environment Technology Ltd, harnesses geothermal temperatures for heating in the winter and cooling in the summer, all controlled via a tablet or phone. There are three ventilation zones – the garage; the ground floor including the gym and communal area between the gym and spa; and the 1st and 2nd floors, each with a designated Sentinel Kinetic High Flow MVHR unit.

“MVHR is an integral part of any Ecohome, Ancona is designed to be almost airtight making air changes via MVHR essential. Vent-Axia’s Sentinel Kinetic MVHR offers pre-conditioned air changes taking heat from outgoing air and applying it to fresh air. Ancona will be a calm, comfortable airy space which will be pollen free and help ensure good indoor air quality”, said Kelly Penson from EcoMansions. People are feeling increasing pressure from society and peers to be much more mindful of our carbon footprints and our impact on this planet. At EcoMansions we aim to provide our clients with more environmentally friendly legacies to enjoy. Our ethos is to provide luxury contemporary homes using the very best available eco friendly technology, products and materials wherever possible to provide the best achievable low energy efficiencies and therefore homes fit to endure our ever-changing climatic conditions.”

The Sentinel Kinetic MVHR units have integral humidity sensors for intelligent air quality control. The sensor increases speed in proportion to relative humidity levels, saving energy and reducing noise. It also reacts to small but rapid increases in humidity, even if the normal trigger threshold is not reached. This unique feature ensures adequate ventilation, even for the smallest wet room. A summer bypass provides passive cooling when conditions allow whilst a frost protection mode ensures maximum ventilation during the coldest periods. A digital controller is mounted on the front of the units and a remotely-wired version has also been included for each.

Ancona uses geothermal ducting that feeds into the three Sentinel Kinetic MVHR units with manual shut-off dampers included for each MVHR Unit, to provide the option of geothermal or atmospheric intake air. Geothermal ducting will provide some free cooling in the summer and some free heating in the winter, which will create a wonderful clean and healthy air quality and year-round temperature in the home. In addition, pollen filters on the MVHR will help hay fever sufferers and inhabitants suffering from other allergies such as dust. Where the MVHR air outlets and inlets penetrate the thermal envelope, appropriate insulating material has been specified to ensure minimum heat loss.

EcoMansions’ goal is to create a substantial home that costs no more to run than a normal family home, even including the existence of both a pool and jacuzzi, with a predicted A-Grade (96) EPC & SAP rated living space. The project is designed with triple glazing and a solid wall construction incorporating 100% recyclable clay blocks. Materials are, wherever possible, made from or with recyclable, recycled, sustainable, low carbon footprint materials without compromising the very high specification and performance of the home. An 8kW solar PV panel system has been included in the design to help keep the low energy house inexpensive to run and provide much if not all of the electrical energy requirements for the home. Battery banks have been specified to store excess energy from the daylight hours to use at night time.

Low carbon, energy saving and clean, Sentinel Kinetic High Flow MVHR is ideal for larger homes and offers a whole building heat recovery system combining supply and extract ventilation in one unit. Warm, moist air is extracted from ‘wet’ rooms through ducting and passed through the heat exchanger before being exhausted outside and fresh incoming air is preheated via the integral heat exchanger. The unit can extract from up to fourteen wet rooms and a communal kitchen while still achieving almost 90% heat recovery. It has two fully adjustable speeds and a purge setting and its energy saving Vent-Axia DC motors further improves efficiency and carbon reductions.

The units benefit from the latest high efficiency, backward curved impeller design, ensuring the lowest possible energy consumption, ultra quiet operation and an exceptional performance range covering small one bed apartments to the largest of houses. Recognised in SAP PCDB, the lightweight MVHR unit is simple to install with a horizontal duct option for space-saving installations and a unique folding filter for removal when access is restricted. The models can be mounted vertically in a roof space or on a suitable wall and ducting can be attached to the unit horizontally, vertically or both. Left or right-hand installation further adds to its installation flexibility.

To find out more about Ancona visit https://search.savills.com/property-detail/gblhchcks180166. For further information on all products and services offered by Vent-Axia telephone 0844 856 0590 or visit www.vent-axia.com.

Cash ManagementFinanceFunds of FundsHedgeWealth Management

BUY YOURSELF A HORSE WITH BITCOIN

Equinox Racing is a London based horse racing syndicate like no other. Focused on delivering immersive experience to its members, Equinox Racing recently opened its horse’s shares to cryptocurrency. From now on, you can use your Bitcoins to buy yourself the thrill of horse racing and the privilege of horse ownership.

 

Rob Edwards, co-founder of Equinox Racing, commented: “There is a huge amount of capital in the crypto world, and not too many tangible opportunities out there. A lot of the people who invested in crypto, particularly in the early days, are punters. They are our kind of people!” 

 

Equinox Racing believes horse racing should not be limited to the chosen few but made available to enthusiasts and new audiences on a wider scale. Having nine horses and about 100 club members and owners to date, Equinox Racing offers a range of exciting experiences. Visit your horse at the stables, speak with the trainer and the jockey, follow his evolution on social media and support him at the race!

 

D Millard from Norwich, Norfolk (horse owner), commented: “Equinox Racing delivers fantastic days out, real prize money winning opportunities, and its stable of horses just continues to grow.” 

 

For the equivalent of £34,99 per month in crypto, which is the average price for gym memberships, Equinox Racing enables you to be part of something greater than a pair of weights. And ownership is available from £150 pounds (in crypto as well)! Thrill, suspense, joy, grace, excitement, exclusivity, are the words that describe the emotions experienced during a horse race.

 

J MacLeod from Ayr (horse owner) commented: “Simply amazing.  My passion for racing has grown now that I have affordable ownership.  I never thought I would be able to own any part of a horse with such a stunning pedigree.” 

 

Equinox Racing is currently expanding its horse’s portfolio and looking at new acquisitions. It is now the perfect time to get involved!

 

More information on: https://equinox-racing.co.uk

BankingFinanceFundsWealth Management

WisdomTree launches Artificial Intelligence ETF (WTAI)

WisdomTree, the exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor, has partnered with Nasdaq and the Consumer Technology Association (CTA) to launch an ETF providing unique exposure to the Artificial Intelligence (AI) sector. The WisdomTree Artificial Intelligence UCITS ETF listed on the London Stock Exchange today, with a total expense ratio (TER) of 0.40%.

 

The ETF will provide investors with liquid and cost-effective access to this exponential technology megatrend that is driving efficiencies and new business capabilities across all industries globally and redefining the way we live and work.

 

Christopher Gannatti, WisdomTree Head of Research in Europe says, “We are delighted to partner with Nasdaq and CTA, who are experts in AI and technology markets. We have worked together, leveraging our combined expertise, to re-define the AI investment landscape.”

 

“To capture the full economic value of AI we place companies in three categories; Engagers, Enablers and Enhancers*. When investors think of what this can bring to a portfolio, they should be thinking over a long time horizon and about how advances like autonomously driven cars, a digital workforce, mass facial recognition and other applications of intelligent machines could change the world,” Gannatti added.

 

Rafi Aviav, WisdomTree Head of Product Development in Europe comments, “AI is a revolutionary technology and the market for AI products and services is expected to more than triple over the next three years[1]. This fund offers a unique approach to capturing this expected growth, which is the result of a year-long collaboration between WisdomTree, Nasdaq and CTA.”

 

“The fund broadly represents the upstream[2] and midstream[3] parts of the AI value chain and so balances diversification with a focused exposure on those parts of the AI value chain that stand to gain the most from growth in the AI market,” Aviav added.

 

There is no commonly used classification system that allows one to automatically choose companies engaged in the emerging AI space, so the research for the selection of index portfolio companies is conducted by experts with deep familiarity of the AI value chain and the technology markets more broadly. This ensures the portfolio remains focused on AI opportunities rather than becoming just another broad tech fund.

 

We believe the fund’s unique approach offers the best of both the active and passive investment worlds in accessing the AI megatrend. The fund’s portfolio companies are already capitalising on the AI opportunity across industries and are well positioned for AI’s growth,” Aviav commented.

 

“AI is one of the key ‘ingredient technologies’ over the next decade – deployed everywhere from factory floors and retail stores to banks and insurance offices, creating new opportunities,” said Jack Cutts, senior director of business intelligence and research, CTA. “We’ll see this play out in January at CES® 2019 – the most influential tech event in the world – where AI will be a dominant theme, showcasing the massive potential AI has to change our lives for the better. We’re excited to partner with Nasdaq and WisdomTree to make AI investible.”

 

“Artificial Intelligence is at an inflection point to drive further economic growth and create new areas of opportunity,” said Dave Gedeon, Vice President and Head of Research and Development for Nasdaq Global Indexes.  “The Nasdaq CTA Artificial Intelligence Index serves as an important benchmark for tracking the adoption of AI across a broad range of economic sectors as this influential technology hastens advancements in productivity and capacity.”

 

WisdomTree Artificial Intelligence UCITS ETF: Under the hood

The WisdomTree Artificial Intelligence UCITS ETF tracks the Nasdaq CTA Artificial Intelligence Index.  This enables investors to gain diversified exposure which is focused on companies that stand to gain the most from growth in AI adoption and performance. The index can evolve as new AI trends and companies come on stream through a semi-annual update. The Index is currently comprised of 52 constituents globally with stringent eligibility criteria:

  • Define Universe: Companies must be listed on a set of recognized global stock exchanges and satisfy minimum liquidity criteria and market capitalization criteria to be included in the index.
  • Identify and Classify: Companies are identified as belonging to the AI value

chain and classified into the following categories: Enhancers, Enables and Engagers (see below for definitions.)

  • Determine AI Exposure: The AI exposure for each individual stock is investigated and scored.
  • Top Selection: Only companies with the top 15 scores in each category (Enhancers, Enablers and Engagers) are selected for inclusion, and their weight is allocated evenly in each category.
  • Allocate Weight: In total Engagers comprise 50% of index exposure, Enablers comprise 40%, and Enhancers comprise 10% of index exposure.

*Engagers: Companies whose focus is providing AI-powered products & services.

Enablers: Companies who are key players in this space, with some of their core products and services enabling AI. They include component manufacturers (including relevant CPUs, GPUs etc.), and platform and algorithm providers that power the development and running of AI processes.

Enhancers: Companies who are a prominent force in AI but whose relevant product or service is not currently a core part of their revenue. They include chip manufacturers, and platform and algorithm providers that power the development and running of AI-powered products & services.

 

Share Class Name

TER

Exchange

Trading Ccy

Exchange Code

ISIN

WisdomTree Artificial Intelligence UCITS ETF – USD Acc

0.40%

 

LSE

USD

WTAI

IE00BDVPNG13

WisdomTree Artificial Intelligence UCITS ETF – USD Acc

0.40%

 

LSE

GBx

INTL

IE00BDVPNG13

ArticlesFinanceRisk ManagementWealth Management

IVA or bankruptcy: what is the best solution for your debts?

If you are suffering from severe cash flow issues, you may be considering both bankruptcy or an individual voluntary arrangement (IVA). Bankruptcy and IVAs are both legally-binding and formal insolvency options between you and your creditors. However, while they might appear similar, there are some vast differences to consider before entering into one of the procedures. Most importantly, you should always seek insolvency advice before doing so to ensure you are not impacting your future finances.

 

With that in mind, Business Rescue Expert – a licensed insolvency practitioner firm – is sharing the difference between the two and what you can expect from both insolvency procedures.

 

Choosing an IVA or bankruptcy

Recently, both insolvency procedures have hit the news due to a number of high-profile celebrities suffering cash flow issues. Katie Price is the most recent victim, with her bankruptcy woes documented in the media. However, she is certainly not the only to face cash flow issues, with the total number of individual insolvencies continuing to rise in 2018. The Q2 Insolvency Service report made for particularly tough reading, with the number of individual insolvencies at its highest since Q1 2012. IVAs accounted for 62% of the total, with bankruptcy behind a further 14%.

 

Individual voluntary arrangements were, originally, intended as a better alternative to bankruptcy. IVAs are, generally, considered the more suitable option for those with assets they wish to protect. The procedure is defined as ‘less extreme’ than bankruptcy and also provides moratorium for the individual, with the breathing space helping to regain control of the issue and get to the root cause of the cash flow problems. However, an IVA is a much longer procedure than bankruptcy, and you could be tied up in the process for up to seven years.

 

Bankruptcy, on the other hand, is often considered as it is much shorter than an IVA – typically lasting no longer than 12 months. Unlike an IVA, however, your assets will be forfeit, and that could include your vehicle and house.

 

There are both advantages and disadvantages to each and, if you are not particularly savvy as to those, we suggest seeking advice to ensure you go down the right path.

 

Can the procedures affect my home?

The effect of the procedures on your home is a common cause of worry for many. If you do enter an IVA procedure, you will not be forced to sell your home. However, if it is highly possible that you could be asked to remortgage six months prior to the end of your IVA to free up any capital to repay your debts. This will only ever happen, though, if it is affordable for you. If not, an additional 12 months may be added to your IVA.

 

In the case of bankruptcy, however, your home will likely be affected. If there is any equity tied up in the house, your creditors may ask you to sell to repay their debts. Either way, you should seek advice at the earliest possible opportunity.

 

What about my car?

Another major cause for concern is your vehicle. IVAs ae much longer procedures than bankruptcy and, as such, you are likely to be able to keep your car. The same, unfortunately, cannot be said for bankruptcy, as the sale of your car could offer a large contribution to your debts. However, if you do require your car/van for your trade and rely on the vehicle to make money and repay your debts, you will, likely, be able to keep it. If this is the case, you must speak to your bankruptcy trustee immediately.

 

Could my job be impacted?

When you do enter insolvency or bankruptcy, the details will be made public. While that doesn’t mean a front page story in your local newspaper, your details will be placed on the Insolvency Register. Similarly, a notice will be placed in The Gazette for your creditors to find. If you work in the finance industry or are a director of a company, both procedures can significantly affect your standing.

 

If you file for bankruptcy, you cannot act as a director of a limited company. However, there is no such prohibition with an IVA. But, there is likely to be restrictions on handling client’s funds and some companies may have stipulations in their contracts for hiring those who have entered or are in the procedures.

 

Why choose an IVA?

There are many reasons to choose an IVA – especially as the consequences appear less severe than bankruptcy. The IVA will be completed after no more than seven years and you can then begin building your credit. Whilst you are in the procedure, your creditors cannot make further demands for repayments or take legal action against you for the debts. Similarly, your assets are afforded more protection, with also far less consequences on your future career – particularly if you are hoping to act as a director for a company.

It’s also important to note the disadvantages, however. If you are looking for a short arrangement with your creditors, you must be aware than an IVA can last up to seven years. Your credit rating will also be affected due to the procedure, meaning you will have to work to build your credit report once complete.

 

Why choose bankruptcy?

Filing for bankruptcy does come with advantages, especially for those that are looking to repay their debts quickly. It is completed in around 12 months. However, if there is any evidence of fraud – such as hiding your assets or not detailing all finances – the trustee could apply for a bankruptcy restriction order, meaning you could be deemed bankrupt indefinitely.

 

Similarly, if you don’t have many belongings/assets or equity tied up in your house, bankruptcy could prove a suitable option. Creditors cannot also demand anymore payments while in the procedure.

 

Like an IVA, bankruptcy does have its disadvantages. The procedure will, almost certainly, affect your ability to work in the finance sector and will stop you from acting as director of a company.

 

Ultimately, there are many differences between the two and any advice you can obtain can only help to ensure you choose the correct option.

ArticlesCash ManagementFinanceWealth Management

BORROWING £50 MORE FOR A CAR LOAN COULD SAVE YOU UP TO £1600 IN INTEREST

Borrowing more for a car loan could save you money, according to research by What Car? 

 

 

Borrowing just £50 more for a new car loan can make it cheaper than taking out a smaller loan according to new research by What Car?, the UK’s leading consumer advice champion.

Analysis of the UK’s leading high street lenders suggests that borrowing the extra amount could save motorists up to £1600 over the course of the repayment period.*

Loans of £5000 typically have lower interest rates than smaller loans. For example, the repayment total of a £5000 loan from TSB over four years comes in around £1300 cheaper than the repayment of a £4950 loan over the same period.

Similarly, at Lloyds the repayment on a £7500 loan over four years is £1601 less than the repayment for borrowing £7450.

What Car? editor Steve Huntingford said: “We would always recommend borrowing as little as possible, but where the loan amount is close to the threshold for a lower interest rate, borrowing as little as £50 extra could save you 10 times that amount, so borrowers should do their homework.”

This trend was most commonly seen when analysing borrowing of amounts between £4500 and £8000.

Research shows that UK motorists are increasingly using finance options to aid with the purchase of cars. Within the first six months of 2018 there was a rise of 8% in car finance lending, with it topping £10 billion.**

However, while taking out a slightly bigger loan can save you money, there is a cut-off point, with loans of more than £8000 costing the borrower more the more they borrow.Savvy shoppers are able to capitalise on these trends by not only borrowing smartly, but by using the What Car? Target Price on What Car? New Car Buying to ensure they get the best deal. 

Car finance top tips: 

Shop around – compare the types of finance available and choose the best option available to you

Don’t stretch yourself – only borrow within your means, making sure you can afford the repayments

Additional charges – be aware of additional charges and always read the small print of your loan to be sure you don’t end up with any nasty surprises

High Net-worth IndividualsWealth Management

Under the radar cyber attacks costing financial services companies $924,390 and getting worse

EfficientIP’s DNS Threat Report reveals alarming 57% attack cost rise in last 12 months

Global DNS Threat Report, shared by EfficientIP, leading specialists in network protection, revealed the financial services industry is the worst affected sector by DNS attacks, the type cyber attackers increasingly use to stealthily break into bank systems. 

Last year, a single financial sector attack cost each organization $588,200. This year the research shows organizations spent $924,390, to restore services after each DNS attack, the most out of any sector and an annual increase of 57%.

The report also highlights financial organizations suffered an average of seven DNS attacks last year, with 19% attacked ten times or more in the last twelve months. 

Rising costs are not the only consequences of DNS attacks. The most common impacts of DNS attacks are cloud service downtime, experienced by 43% of financial organizations, a compromised website (36%), and in-house application downtime (32%). 

DNS attacks also cost financial institutions time. Second to the public sector, financial services take the longest to mitigate an attack, spending an average of seven hours. In the worst cases, some 5% of financial sector respondents spent 41 days just resolving impacts of their DNS attacks in 2017.

While 94% of financial organizations understand the criticality of having a secure DNS network for their business, overwhelming evidence from the survey shows they need to take more action. Failure to apply security patches in a timely manner is a major issue for organizations. EfficientIP’s 2018 Global DNS Threat Report reveals 72% of finance companies took three days or more to install a security patch on their systems, leaving them open to attacks. 

David Williamson, CEO, EfficientIP, comments on the reasons behind the attacks. “The DNS threat landscape is continually evolving, impacting the financial sector in particular. This is because many financial organizations rely on security solutions which fail to combat specific DNS threats. Financial services increasingly operate online and rely on internet availability and the capacity to securely communicate information in real time. Therefore, network service continuity and security is a business imperative and a necessity.”

Recommendations
Working with some of the world’s largest global banks and stock exchanges to protect their networks, EfficientIP recommends five best practices:

Enhance threat intelligence on domain reputation with data feeds which provide menace insight from global traffic analysis. This will protect users from internal/external attacks by blocking malware activity and mitigating data exfiltration attempts.

Augment your threat visibility using real-time, context-aware DNS transaction analytics for behavioral threat detection. Businesses can detect all threat types, and prevent data theft to help meet regulatory compliance such as GDPR and US CLOUD Act.

Apply adaptive countermeasures relevant to threats. The result is ensured business continuity, even when the attack source is unidentifiable, and practically eliminates risks of blocking legitimate users.

Harden security for cloud/next-gen datacenters with a purpose-built DNS security solution, overcoming limitations of solutions from cloud providers. This ensures continued access to cloud services and apps, and protects against exfiltration of cloud-stored data.

Incorporate DNS into a global network security solution to recognize unusual or malicious activity and inform the broader security ecosystem. This allows holistic network security to address growing network risks and protect against the lateral movement of threats.

Inheritance Tax
Family OfficesIndirect TaxInheritance TaxReal Estate

Number Of Retail Investors Seeking IHT Advice Set To Rise

Advisers highlight expected increased use of flexible IHT solutions for clients

More than three out of four (78%) financial advisers expect the number of retail investors seeking help for IHT planning to increase over the next three years, according to new research from TIME Investments, which specialises in tax efficient investment solutions.  The findings come as IHT receipts hit a record £5.2 billion in 2017-18 despite the introduction of an additional nil-rate band.

Six out of ten (63%) advisers also predict an increase in the number of IHT products and investment solutions to be launched in the UK.  However, whilst this will offer more choice to investors, it also comes with a health warning – 88% of advisers questioned are concerned that new products will be launched by firms that don’t have the appropriate track record and/or expertise.

Two thirds of advisers predict an increase in the use of Business Relief (formerly known as Business Property Relief) over the next three years to help people reduce their IHT liabilities.  To encourage investors to support UK businesses, the Government allows shares held in qualifying companies that are not listed on any stock exchange and some of those listed on AIM to qualify for Business Relief. This means that once owned for two years, the shares no longer count towards the taxable part of an inheritable estate and are free from inheritance tax at point of death.

The accessibility of Business Relief investments and the range of investment opportunities available help to provide flexibility in IHT planning.  Three quarters of advisers felt that the increasing use of Power of Attorney due to rising dementia rates would contribute to the growth in the use of these flexible IHT solutions.

Henny Dovland, TIME Investments’ IHT expert comments: “The number of families in the UK being caught in the IHT net is increasing.  This represents a significant opportunity for advisers specialising in IHT and intergenerational planning and is reflected in our findings that reveal more specialist products are set to be launched in this market. However, care needs to be taken to ensure any new solutions are fit for purpose.  Our specialist team has a track record of over 22 years in this complex area.”

For further information on TIME Investments and its range of products, please visit www.time-investments.com

proserv
Private ClientWealth Management

Preserving a Heritage of Excellence

Preserving a Heritage of Excellence

Proserv is a global leader with a worldwide presence, offering a fresh alternative in the delivery of engineering and technical services to the energy, process and utility markets. We spoke to Andy Anderson, Regional President MEA at Proserv, to find out more about the company and its innovative services.

Andy, could you begin by providing our readers with a brief overview of Proserv Middle East and the services you offer?

“Proserv is a global leader and a fresh alternative in the delivery of engineering and technical services to the energy, process and utility markets, supporting clients throughout the lifecycle of their assets. We operate in six regions throughout 22 facilities and 12 countries, offering 24/7 local support services. Core to the Proserv offering is our ability to manufacture, deliver and support solutions locally through our highly experienced pool of technicians and engineers.

“We have been based in the UAE for over 25 years, largely servicing customers across the energy sector, including offshore and onshore services, equipment design and manufacturing. Proserv has supplied the vast majority of installed wellhead controls in the region through its legacy brands – Brisco, CAC and eProduction Solutions.

“We deliver a broad range of hydraulic safety shut down systems for wellheads, chemical injection systems, downhole and surface sampling systems, from bases across the region; all of which are backed up by a strong technical team who are able to install, commission and maintain equipment in the field.”

Talk us through your approach to client service. How do you maintain the high standards synonymous with the Proserv brand?

“Meeting and exceeding our clients’ expectations is vital to ensuring our ongoing success. We strive to develop and maintain this through establishing business relationships built upon experience, competency and trust. We focus on regular face-to-face engagement with our clients, taking the time to understand their requirements.

“We then revert with a solution that is in line with our company ethos – Ingenious Simplicity. This concept is based upon challenging convention in an industry that continues to ‘over engineer’. Ingenious Simplicity is about being flexible and responsive to clients’ needs, while reducing unnecessary levels of complexity in order to get the job done in a cost effective manner.”

Following on from this, what is it that makes Proserv Middle East unique? How do you distinguish yourselves from your competitors, and present yourselves as the best option for your clients?

“Proserv has an extensive brand heritage spanning over 40 years. Through our acquisitions, we have shown the importance of embracing this heritage alongside a commitment to constantly evolve and develop innovation.

“A key topic in our industry right now is ageing wells, and as a result E&Ps are searching for adequate partners to support their OEM requirements, without full system replacement. Many parts for the old wells are now obsolete or superseded and so Proserv has recognised this and positioned itself as a partner of choice who can re-engineer the part required to maintain production.

“Also, we actively listen and collaborate with our clients to find cost effective solutions for their maintenance and production issues. A great example of this was the development of our cost-effective Smart Box solution. Also, we are currently working on the development of an Asset Enhancement Global Intelligence Solution (AEGIS), which will be released, to our customers this June.

In order to provide quality services, exceptional staff are crucial, so please tell us more about the culture within Proserv Middle East and the things you do to maintain and develop it. What do you look for when attracting new staff and how do these traits help them integrate into your company?

“Our growth is driven by a team of dedicated and talented people who provide the company with expertise in engineering and business, creating pioneering solutions that allow us to remain competitive. As a service EPC, our people are our biggest asset and we nurture an environment that encourages creativity and employee-driven innovations.

“In the UAE, we employ more than 20 different nationalities and unite through a clear set of values. The five values – encompassing teamwork, service, communication, entrepreneurship and right thing, right way, guide each of our decisions and behaviours. When we recruit new people to join our team, we look beyond a person’s technical ability and experience and place emphasis on ensuring a person’s values are aligned to Proserv’s. Internally, we provide training for our staff, encouraging continuous development and learning through our internal ‘Proserv Academy’. One example is our ‘technician training school’ which we have developed and implemented for the needs of our Saudi business. The school will enable many young Saudis to gain the necessary skills to learn and develop as part of the Proserv family.”

As your regional headquarters are in the UAE, can you please tell us a bit more about the opportunities and challenges you experience being based there?

“The UAE has the world’s seventh largest proven reserves of both oil and natural gas, estimated at 97.8 million barrels and 215 trillion cubic feet. There is no doubt that oil will continue to provide income for both economic growth and the expansion of social services for decades to come. In the coming years, natural gas will play an increasingly important role in the UAE’s development – particularly as a fuel source for power generation, petrochemicals and the manufacturing industry.

“The industry itself is going through a difficult transition; CAPEX is not always a viable option for our end user clients and OPEX is typically only being spent to perform safety or production critical work. However, with ADNOC being restructured and the oil price creeping up towards $70 per barrel, new investments are planned for the short/medium term. These challenging times have called for a fresh approach in maintaining operational efficiency, whilst decreasing OPEX through scheduled and maintained inspections, but also longer term planning. Our approach has been to offer services across the complete life of field through locally supplied products and services. We have existing long-term service contracts with our clients, where we have proven we can repair or upgrade existing assets, rather than replacing them, thus enabling them to maintain production and reduce downtime at a fraction of the cost.

“The UAE serves as a Centre of Excellence for Proserv’s growing business and organisational presence in the Middle East and Africa market. Our regional headquarters and equipment-manufacturing facility is located in Dubai, while the service centre is located in Abu Dhabi.”

In your opinion, what are the key advantages to being based in the UAE? Are there any core areas of growth that you believe make it the ideal hub for your business?

“For some time, the UAE has been viewed as an energy hub/gateway for the Middle East region. While many companies located in the UAE solely distribute products made in the USA/EU across the Middle East market, Proserv manufactures and provides services from its local facilities in both Dubai and Abu Dhabi.

“Proserv recognises that the best support for our clients is achieved by local, in country support. The energy industry is a 24-hour operation, and, as such, has a need for timely service capability. We are able to immediately mobilise service engineers/technicians with local visas/work permits to address unplanned events that can cause our clients expensive downtime via lost or reduced production. Also, we provide client specific intelligence solutions to map and track inventory parts, enabling us to provide or quickly call off replacement parts. Our focus remains on world-class respond and resolve solutions.”

Reflecting on the past 12 months, what have been the most prevalent trends in your industry and how has your business adapted around these?

“Last year was a year of innovation for us. Our track record, coupled with our ability to create new value for our clients, allows us to continue to expand our business. The opening of our facility in Saudi Arabia – an Aramco Approved Manufacturing and Service Facility – was a key moment for us back in 2016 with the region very much continuing to be a key growth market for us.”

Looking ahead, what does the future hold for Proserv in the Middle East? Do you have any future plans or projects you would like to share with us?

“Moving forward, Proserv will continue to secure its footprint within the GCC through the establishment of a Manufacturing & Service facility in KSA, as well as investing in expanding our service centre in Abu Dhabi. This will further strengthen our capabilities and capacity to service the increasing demand for our product and services within the region.”

Contact Details 

Company: Proserv Middle East

Address: Jebel Ali Facility, Jebel Ali Free Zone, Dubai, 16922, UAE

Phone: 00971 4 808 3500

Website: www.proserv.com

Select Element
wealth management
Private FundsWealth Management

Wealth management and digital engagement

“Hey, Siri, how do I keep my clients?” Wealth management and digital engagement

By John Wise, Co-founder, CEO and Chairman, InvestCloud

Many wealth managers are wondering why millennials fire them after an inheritance. It’s a daunting problem with a very simple cause: millennials don’t see the value that wealth managers add. This is primarily due to a lack of empathy and resonance on the wealth manager’s part with younger generations.

There is a lot of money in motion right now. As Baby Boomers retire and Gen X’ers start planning for retirement, many are selling small businesses, downsizing their homes and starting to tap their retirement plan assets. Because of these dynamics, in the US alone, over $60 trillion of assets are becoming liquid and transitioning between generations now. This money is up for grabs.

The primary inheritors are millennials, and they are becoming a major presence. This generation represents approximately 30 percent of the US population. They are the largest age group demographic in the country and a close third of the investor base – around 30 million investors. This generation is already the next big thing in investing.

Millennial money

What are millennials going to do with this money? Well, it is not the same as previous generations, as the adoption of wealth managers is low among millennials. A recent report from Accenture shows that only 20 percent of millennial investors say they will work with an advisor exclusively. This is partly due to 57 percent feeling their advisor is only motivated to make money, and about one-third feeling their advisor doesn’t get to know them.

The result is devastating for the sector: up to six 6 out of 10 clients leave their benefactor’s advisor upon inheritance – i.e., the millennial fires the advisor upon receipt of the money. This is coupled with a distrust bias toward large brands – with an exception until recently for the tech platforms they use every day. This distrust is especially true of financial brands for a generation defined by the recent global economic crisis.

This is illustrated in that 70 percent of polled millennials would rather go to the dentist than listen to what their banks are saying. Worse still, a further 70 percent – across all age groups – say they would accept financial advice from a Google, Facebook, Apple or robo-advice platform instead of a traditional financial business. This is an engagement crisis for wealth managers.

So how do managers reverse this trend and engage investors?

Re-booting engagement – offline and online

Millennials are reported to have poor attention spans, a fear of missing out (FOMO) and a love of digital communication methods. While these observations don’t apply to all millennials, there probably isn’t going to be a mass exodus from short playlists and social media to steak dinners and golf.

Empathy is the key to better engagement – both offline and online. First of all, an obvious point: wealth management businesses need younger people to better engage with the latest generation of investors and to speak their language.

But empathy must be both in-person and digital. If in-person means connecting with investors in real life, then digital means relating it both in browser and through mobile apps. Digital is one of the saving graces for wealth management businesses – it makes them appear younger, and millennials clearly value digital, especially in finance.

Digital requirements

Any digital offering needs to meet certain requirements. Firstly, it needs to be available at any time, any place and via any device to give millennial clients power over how and when they interact with their wealth. Think of how the services they use every day work, such as Google, or how they choose to connect – i.e., a preference for mobile, app-based platforms.

It also needs to distinctly appeal to the user. This means it must be intuitive, involved and individual. The user experience needs to appeal directly to the client, all content should be unique to them and it must be worth their time to use the platform. When it comes to engagement, it’s not just other financial service providers that are the competition. Wealth managers are up against social media and entertainment streaming platforms as well.

Thought also needs to be given to specific functionality – what does your digital platform offer? The Accenture report mentioned above goes some way to calling out the specific requirements from this generation.

For example, 67 percent want a robo component and real-time tracking of transactions, payments and other financial data from their investment manager. A further 66 percent want a self-directed investment portal with advisor access, with 65 percent needing gamification for engagement and to help them learn more about investing. Those requiring social media and sentiment indices in the platform to help with investment decisions is around 62 percent.

Remember, though, that these offerings are not one-size-fits-all – they still require tailoring to the individual.

Using the best of both worlds

This doesn’t mean a complete shift to digital-only services. If a client has significant assets – and particularly as his or her life gets more complicated – a broader advice scale is needed, rather than simply having assets allocated to a handful of ETFs. The interaction of digital and human empathy is the key to effectively servicing these specific needs.

This is hybrid wealth management: offline and online services that work harmoniously together to create a better experience for the client, and greater levels of engagement for the manager. It means a better understanding of clients and therefore leads to more opportunities to expand the share of wallet, impacting the all-important bottom line.

So, how do financial businesses resonate better with millennials? Appoint younger people. Use digital. You can still be full service – helping manage life events like retirement planning, college planning, trusts, wills, parental long-term care planning and the like. But make sure you focus your business model on delivering from a place of empathy both in-person and digitally.

stock market
High Net-worth IndividualsWealth Management

2017 Was The Year Of The Bull 2018 May Not Be

2017 was the year of the bull – 2018 may not be

January is an important month in the investment calendar – this year more than most. After a bullish 2017, where most risk asset classes made consistent, if not impressive gains, many feared this long bull run would come to a shuddering halt. However, a month in to 2018 and with a round of solid economic data coming out, the mood of market participants has become increasingly optimistic.

But should they be? It is undeniable that after the tumult of 2016, 2017 saw markets perform exceptionally well, despite a tense geopolitical backdrop. Take major indices as an example. Over the course of the 2017 calendar year the FTSE100 was up 7.6%, the FTSE250 was up 14.65%, the Dow Jones closed 25% higher and the NASDAQ climbed 28%.

2018, however, will be more difficult. The aftermath of the financial crisis and the monetary policies pursued by central banks in the form of quantitative easing has led to stretched valuations across the board. The impact of an increased money supply has even trickled down in to the valuations of newer, less tangible asset classes like cryptocurrencies.

In 2017, the S&P saw 12% earnings growth against a backdrop of a 20% price rise. In other words, share prices are rising faster than earnings and this year there are similar expectations and extrapolations in terms of earnings growth across most major markets.

However, with high expectations and high valuations, danger is never far away. Global economic growth will generate some momentum, alongside the tax reforms in the US. With most major economies growing simultaneously, there may well be an accretive effect which feeds through in to global GDP growth. However, we are at a late point in investment market and economic cycles respectively.

At London & Capital we are advising clients to proceed with caution and to remember the importance of protecting capital especially when the market environment is driven by greed.

Part of the reason for caution is the prospect of further monetary policy tightening. At the very least there will be a series of interest rate hikes in the US with the prospects of a reduction in monetary stimulus in Europe and even in Japan.

However, it is the UK that represents the best example of the pitfalls from the interest rate cycle. The Bank of England Monetary Policy Committee’s recent hawkish rhetoric may potentially lead to a trigger for a downturn from the interest rate cycle. The uncertainty around Brexit and the stretched British consumer means that rate hikes in the UK would be a blunt instrument in dealing with temporary cost inflation from a currency devaluation which has now passed.

Additionally, with the UK consumer having taken on significant levels of personal debt since the financial crisis, interest rate rises at this stage may hamper the spending of Britons further still and create a bust in consumption from a classic rate cycle trigger.

It is on the subject of debt that we need to talk about another significant economic player: China.

China’s debt risk is considerable. Its debt to GDP ratio has surpassed 200% as the Chinese economy has pivoted from being production and export-led, to being consumption based. The 200% threshold represents a watershed moment. This is the point at which in the past countries from Japan, Spain and the Tiger economies of the Far East in the late 90s reached before they slowed significantly and endured economic discomfort.

China will likely be unable to continue growing at the 6% clip it has in the recent past given this debt level. As the world’s second largest economy, even a relatively small drop in the rate of growth could have significant consequences – not just for manufacturers, industrials and those who have seen China as the world’s workshop. It will also have an impact on retailers keen to target an increasingly wealthy Chinese consumer. Commodity prices could also be affected.

China’s demographics are also changing quickly. With the effects of the one-child policy promoted by the Chinese Communist Party in the latter part of the 20th Century becoming more apparent, China’s population is peaking, meaning a supersize generation of retirees may need to be supported by a smaller, younger cohort. This again could constrain disposable income with all the consequences that brings to business. As such, it may well be that the Middle Kingdom grows old before it grows rich.

There are plenty of warning signs which should make investors cautious about the investment landscape in 2018. This year, the old investment adage that past performance is not a reliable indicator of future results has never been truer.

Roger Jones is Head of Equities at London & Capital. London & Capital is an independent wealth and asset manager. This article has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for investment advice. Always seek appropriate professional advice.

Man About Town
Family OfficesWealth Management

Man About Town

Founded by Andrew Heiberger in 2010, Town Residential has cemented its position as New York’s foremost luxury real estate services firm with an exhilarating foundation and seamless execution of best-in-class customer service by an unparalleled team of more than 500 Representatives and professionals strategically located in ten prime Manhattan, Brooklyn and Queens locations.

Town Residential boasts a unique fully integrated luxury real estate platform and specializes in luxury residential sales; leasing; the marketing, sales and leasing of property developments; commercial and retail. With uncompromising principles, Town Residential has established a new standard of excellence within the industry.

At all price-points, Town Residential implements a hand-crafted approach to the marketing of sale and leasing properties with unequalled distribution online and in print; through press and events; and industry syndication. Town Residential’s innovative platform extends beyond traditional print and digital exposure. We have cultivated strategic relationships and focused on events that provide our Representatives with personal access to thought leaders, trendsetters, and tastemakers.

Debra Stotts, licensed Real Estate Broker specializes in luxury property in New York City, with deep-rooted expertise in – and a passion for – the vibrant, international Midtown East neighborhood. Her credentials include unparalleled knowledge of the iconic, award-winning residential building, 845 United Nations Plaza.

Debra has consistently been a leading broker at Town Real Estate. With over $550 million in transactions, her success is the result of 25 years of experience, immersive market intelligence, a history of providing exceptional service, and – especially – the strength of the client relationships she has built on mutual understanding, respect, and trust.

Whether buying, selling, leasing, or managing, Debra’s focus is on her clients; her clear-headed guidance and tireless work ethic ensure that their goals – whether financial or personal – are achieved. She has been entrusted to transact real estate for investors around the globe and for families making their first home purchase, for foreign governments, relocating executives, international institutions, diplomats, downsizing empty nesters, and everyone in between.

Debra firmly believes that Midtown East offers the best value for a NYC investment – so much that she makes her own home here. Ask and she’ll tell you about the hot restaurants, the different parks, and where to go for the best artisanal pastries. She can tell you about the history of the international. Turtle Bay neighborhood and who’s lived there, about the stunning, protected views from 845 United Nations Plaza -and about its inner workings. Informed by her seven years as the onsite sales and leasing director, she knows the building intimately and firsthand.

Drawn to neighborhoods that, like Midtown East, offer nearby parks and water views – a respite from the city bustle – Debra previously worked in on-site sales for luxury properties in Battery Park. Prior to that, she built her real estate business helping to relocate United Nations Representatives to New York. Early in her career, in the days of luxury flying, Debra was a TWA flight attendant, a job she credits for instilling in her the value of providing top-quality, exemplary service.

A Manhattanite since she was in her early 20s, Debra raised her family and nurtured friendships here. From the tranquil early mornings to the rush of the workday to the throbbing pulse of the nightlife, she relishes the city’s changing energies. She enjoys the multi-cultural foods and experiences and the easy access to Broadway Theater, to the world’s best museums, and to Central Park. Debra especially cherishes the striking view from her own home, which overlooks the vast and varied East River.

A World of Opportunity
Private ClientWealth Management

A World of Opportunity

A World of Opportunity

Kehrli & Zehnder is a multi-family office that advises wealthy individuals and families on how to manage, organise, allocate and protect their wealth. The firm oversees all aspects of its clients’ wealth with core strengths in asset management and the selection of correlated and non-correlated alternative investments.

Dominik E. Zehnder is co-founder of the firm, serves as Chairman of the Board and co-runs the business. “Restructurings and lay-offs at banks and financial institutions is a great opportunity for us to showcase our firm as an anchor of stability and reliability,” he says. “The partners at Kehrli & Zehnder only have one goal at the core: over-deliver on the service and performance expectations of our clients. We provide high quality, independent, unbiased and professional advice.

“The current restructuring wave also paves the way for us to hire qualified and experienced staff who look for a more dependable environment for their clients and for their own professional future.
“When clients come to our firm, they are served by one of the partners” (rather than being covered by a junior member of the staff). “Our belief is clients have given us their trust and we have a duty to make sure they have a good experience.” Every partner has a unique skill that benefits all clients of the firm.

Dominik firmly believes that the best way to measure the firm’s success is how long clients stay with them. “I am happy to report that we have clients who have been with us since we were with our previous employers (in the last century!)” he enthuses. “The best endorsement for us is when clients refer their friends or business partners to us” and those who give us a larger portion of their assets over time.”

Dominik embellishes a little on the firm’s history. “We started Kehrli & Zehnder in 2003 and grew it one client at a time, step by step,” he begins. “We want to grow organically and in a sustainable manner. Our industry is one built on trust, and trust is not created overnight. Kehrli & Zehnder is a firm for the long-run.”

Kehrli & Zehnder is off to a successful start in 2017 with two new mandates. In the first, “the principal sold the family business and asked us to set up a wealth-preserving structure that focuses on non-correlated investments,” states Dominik. “The second is from one of our largest (and longest standing) clients who has given us a second mandate to invest in non-correlated assets.”

“Many like our open-minded and international orientation. In addition to our home market in Switzerland, we have representative offices in Hong Kong and Lugano. We travel to Asia, the U.S. and London at least once a year to perform due diligence on existing asset managers and identify new investment opportunities.”

As part of his day-to-day role, Dominik attends to clients, meets managers and writes the firm’s monthly investment comment. Client acquisition is mostly focused on their core target pool (entrepreneurs and wealthy families). This comes only after having established a rapport of trust.
“The key challenges these days are high valuations, markets that are distorted by central bank actions and political risks. Clients want capital preservation but also capital appreciation. We will achieve the first goal by diversifying across asset classes, regions and strategies.

By picking attractively valued and partially overlooked strategies or geographies we seek to achieve the second objective. Depending on our clients’ profile, we overweight one objective over the other.
“The regulatory environment and administrative requirements have become increasingly cumbersome and continue to absorb resources. By choosing our clients carefully, we are minimizing regulatory issues.”

Building a strong and loyal team is imperative. “Our staff is instrumental to the success of our firm and they ensure the quality and consistency of our service. Staff turnover is very low as we strive to provide a good work/life balance.”

Company: Kehrli & Zehnder Global Wealth Management
Name: Dominik E. Zehnder Email: [email protected]
Web Address: www.kehrlizehnder.com
Address: Gartenstrasse 33, CH-8002 Zurich, Switzerland
Telephone: +41 44 222 1818

Adar Capital Partners: Hedging Their Bets
Private ClientWealth Management

Adar Capital Partners: Hedging Their Bets

Adar Capital Partners provides a range of investment vehicles which stand out thanks to their forward thinking attitude and collaborative work ethic, as Diego outlines.

“Here at ACP our investment decisions are not biased by the media, we invest in fundamentals. As such we prepare portfolios for significant political and social events such as Brexit and the US Elections, so that we are able to consider the options. We have a small and efficient structure with great communication and full support between our team, all of
whom work together to ensure that we offer our clients the best possible service. Our staff share the same values, investment philosophy and culture, which makes for a great team whose core focus is always our investors’ interests.”

The firm’s investment approach concentrates on a few annual investments with mid-term horizons of two to five years. After fundamental analysis of each investment, the firm keep it until they reach a target, even when in the short term it does not perform as expected. This patience, dedication is what sets the firm apart, as they go the extra mile, traveling to every company they invest in in order to understand the essence of the deal and monitor the investment.

Moving forward, the future looks exciting for ACP, as Diego concludes by discussing how well the firm has performed over the past 12 months and how the company is prepared to adapt around new developments it foresees.

“During the past year we obtained 30% net return in US dollars for our investors. We believe that current portfolios still have more success to achieve, and as such we are confident that 2017 is going to be also an excellent year achieving good results and providing great satisfaction to our investors.”

“Looking ahead, we believe that the world is changing and that brings new challenges for us to adapt to and educate our investors around. Economy, politics, information and technology are changing the way to invest and these all represent opportunities which we look forward to exploring.”

Company: Adar Capital Partners Ltd
Name: Diego Marynberg
Email: [email protected]
Web Address: www.adarcapitalpartners.com
Address: One Capital Place, Shedden Road, George Town, Cayman Islands

10 Relationship Challenges in Family Businesses and Legacy Families
Family OfficesWealth Management

10 Relationship Challenges in Family Businesses and Legacy Families

At Aspen Consulting Team (ACT), we work with family businesses and legacy families as they walk the balance beam between love and money, socio-emotional wealth. Using a metaphor from the golf course—we go into the deep weeds and thicket of family dynamics and get the ball out to the short lgrass—so family members and their financial and legal advisors can move it forward. We work with family businesses and legacy families at the top 1% financial level.

The organizing principle in our consultation, including work with our colleagues David Bork and Dr. Will Bledsoe at Family Business Matters Consulting, is based on the Biblical message— build before the rain, from the story of Noah. There will be “rain” in a family business and a legacy family. We believe four pillars—alignment, boundaries, communication, and competence—provide a framework for building strategy, synergy and structure for managing the relationship challenges and conflicts in a family business and legacy family.

Over the years, we have worked for family businesses with 5 employees to over 15,000 employees and legacy families with $50 million to $5 billion in assets under management. At the ownership level, the relationship dynamics are very similar. It is first about trust, then alignment, boundaries, communication and competence at the ownership, family and management levels.

Recently, we helped a third generation (G3) family business transition to the fourth generation (G4). This involved the owners doing both strategic and succession planning for the business and establishing a Family Council. We have worked with several family businesses where there was a death by suicide of an heir. Helping these families understand and heal from such a tragedy was critical to their continued success.

How ACT helps families sustain and grow their wealth
Both psychological and economic theories frame our work. Our task is to resolve and restore breakage in relationships that block and prevent positive economic interaction, longevity and harmony in a family business and legacy family. The foundation of a good family is love and care, and the goal of a successful business is profit and return on investment. These can be in conflict in a family business and legacy family.

We define a family business as a company in which two or more family members hold a management, board or ownership position. We define a legacy family as a family unit or office that has $50 million dollars or
more in assets under management. Our work is influenced by six theories as we help families sustain and grow their wealth and at the same time, maintain personal and relationship harmony.

1. Love and money in a family business or legacy family are symbiotic and immiscible—they are connected but don’t mix together naturally. Love and money, what we call emotional economics, influences nearly everything in business and family relationships. There are no major emotional decisions without an economic dimension, and no major economic decisions without an emotional dimension. Pre-nuptial agreements are an example.

2. Family business and legacy family members must have “thick trust”. The first stage of psychosocial development is trust versus mistrust. We believe there are three types of economic trust. Exchange trust is the basic form, “trust, but verify”’, where we expect to be served and to pay for the meal we ordered. Mutual trust, “tit for tat”, is the most typical type of transaction in business, where we move in response to the first actor. Thick trust, long-term interactions and exchanges, is the only, but hardest, trust strategy for family members to avoid discord and have the advantage of effectiveness and speed. Negotiations are an example.

3. When emotions compete with economics, both lose. In many important decisions, the emotional tail can wag the economic dog. The oldest part of our brain is the emotional system. It evolved long before our economic system to help us survive. When our emotional system works in a healthy and mature manner it will provide a positive guide to decisions, when it malfunctions in business and economic decisions it will derail productivity, profit and reputation. Succession is an example.

4. A healthy endowment effect can turn into an unhealthy entitlement effect if not managed. Nearly every parent wants to endow his or her child with special opportunities. There is a thin line between endowment and entitlement. Entitlement happens when endowment expectations are not clearly defined and managed and financial gifts enable negative behaviours. Addiction is an example.

5. Every generation must manage their ‘commons’. The Boston Common, the historical park in downtown Boston, is an example of what economists call “the tragedy of the commons”. After 200 years of commercial use by many, it was closed because of overuse by a few. Affluent families and family businesses must have agreements on how to grow resources, limit extravagances and avoid rivalries and feuds that divide and destroy the common assets. Family constitutions are an example.

6. Parents must identity, understand and manage the dynamics of equality and equity, the ‘fairness monster’, among their children. Equality is identical apportionment and exact division of quantity. Equity is justice tempered by ethics and division based on contribution and need. One illustration is how the turkey is carved at the dinner table. Equality would mean that everybody would get the same size and type (white/dark meat) of turkey. Equity would mean that the carver would divide the turkey according to needs and perhaps even wants. Balancing these two dynamics in a legacy family requires the Wisdom of Solomon. Gifting and distributions are examples.

How love and money are mixed for the best possible outcome for families, businesses, and individuals is where the rubber meets the road. Relationships follow predictable, evolutionary life cycles that can either create advantage or discord. For legacy families and family businesses to successfully grow, share and transfer financial assets and social values, attention needs to be given, equally and systematically, to wealth, interpersonal, spiritual and human capital, what we call WISH™ investments.

Family wealth has a history of not surviving beyond the 3rd generation, called “shirtsleeves to shirtsleeves”. Dr. John Ward, professor at Kellogg School of Management and co-founder of Family Business Consulting Group, Inc., conducted a study on family business succession. He found that only 30% of family companies survive through the second generation, 13% survive through the third generation and only 3% survive beyond the third generation. Less than 5% continue through appointment of a successor from the next generation.

In one effort to answer the question of why the transfer of wealth in an affluent family is so problematic, Roy Williams and Vic Preisser, authors of Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values, interviewed members of families with net worth ranging from $5 million to over $1 billion. They asked questions about how the failed transitions of wealth differed from the successful ones. They found that the involvement of all family members in the decisions about the transition of wealth required both trust and communication skills, which helped avoid the dynamic of parents dictating the future to their children.

Conducting a quantitative assessment, Dr. Michael Morris, along with Roy Williams, Jeffrey Allen, and Ramon Avila, interviewed 209 family business owners from the second and third generations. Their report, “Correlates of Success in Family Business Transitions’” concluded that relationships within the family had the single greatest impact on the successful transition of ownership and wealth: The dominant variable in successful business transition appears to be family relationships. Family business leaders’ first priorities should be building trust, encouraging open communication, and fostering shared values among the family members.’

The work of Morris, Williams and Preisser reached the conclusion that the major causes of financial failure have more to do with psychological patterns in the family than with legal, financial or business planning. According to their research, 30% of legacy families are successful in transiting wealth, but 70% lose control of their assets.

• Success rate in legacy families (30%);
• Collapse in trust and communication in the family system (42%);
• Failure of parents to adequately prepare their heirs for creating and managing the wealth (17%);
• Lack of proper governance structure (8%); and
• Insufficient tax and legal planning (3%).

Both financial interest and interpersonal dynamics can be successfully managed when family leaders give systematic attention to the following four areas.

Alignment
Alignment in a family business and legacy family requires collaboration, coalition and movement to the same target. Family businesses are poised for long-term success when family members, owners, executives and employees have similar values and are united toward the same goals. The best companies are the best aligned. Strategy, purpose and organisational capabilities must be in sync. Without clear alignment family businesses are vulnerable. Even hairline cracks in the family business can widen and invite disaster.

On the one hand, family businesses are the source of family happiness; on the other hand, they can be the source of family heartbreak. Misalignment creates discord, tension and conflict. Alignment creates a process that reinforces the company strategy, increases family and organizational harmony and promotes accountability and profitability. Keep the focus on the business! Its success is what makes other things possible.

Boundaries
Like a Trefoil clover, family businesses have three components: the family, ownership and enterprise. Boundary skills determine how family members, owners, non-family executives and employees will interface for the advantage of the business. ‘Good fences make for good neighbours.’ Unclear boundaries are at the root of many of the problems in family business. Boundaries need to be clear and constantly maintained if they are going to do the job for which they were intended. In order to create and maintain good boundaries family business leaders must define roles, responsibilities and accountability for owners, managers and employees and methods for handling certain personal matters. Family members must not meddle in areas for which they do not have responsibility. When a business is large enough to hire family and non-family professionals, use outside advisors, and establish governing boards clear boundaries prevent conflicts of interest.

Communication
Communication is one of the recurring issues that owners and executives in family business identify as a major obstacle to productivity. In a business with more than 200 employees, about 14% of the working week is wasted because of poor communication between staff and management. In a family business, poor communication can turn into personal and professional conflict. It is a family’s ability to manage and resolve conflict that determines its maturity and emotional health. Communication is more than transmission of information; it is the interactional heartbeat of the organisation.

All communication is grounded in relationships. Unless we’ve been otherwise educated, most of us unconsciously enact styles of communication and conflict we learned in our families and carry them into the workplace. Whether it’s resolving relationship issues, confronting challenges, managing conflicts or planning for succession, effective communication skills guarantee that every situation will be addressed and resolved in a thoughtful, deliberate, constructive and comprehensive way. Clear, constructive communication must always be the goal.

Competency
Competence is about the maturity, fortitude and talent to be an effective leader and team member in the business and successful leader in the family. In a survey of directors serving on boards of family-owned businesses, only 11% reported that the company was effective at developing talent. From those making decisions in the boardroom to those carrying out the day-to-day operations, everyone contributes to the success of the business by knowing how to play his or her position at the highest level. You can’t afford people who are doing just OK. You need high performers.
Due to the unique and subtle connections in a family business, leadership and employment standards must be clearly defined, established, reinforced, and rewarded (or not) at every level in the company. This is critical in any succession plan and process. The family in business must understand sound business practice and how it is affected by family dynamics. Competency principles and procedures of leadership and employment improve the company culture.

Roles and responsibilities must be consistent with the company strategy and at the same time encourage every employee to have a personal feeling of ownership and investment, to think and act like a leader, and to give their best efforts. This entails attracting, training, retaining and rewarding talent, having the right people in the rights seats and the appropriate family members at the Family Council table.

MAPS for Men, A Guide for Fathers and Sons and Family Businesses (first person – Edgell)
MAPS for Men, A Guide for Fathers and Sons and Family Businesses (M4M) involves over forty years of studying male psychology and working with professional men, especially around the relationship between fathers and sons. I first presented a paper on this topic in 1995 at the Vienna Chief Executive Organization University.

Tom had a very successful career with a national business before starting his training firm. When Tom, who has a master’s in psychology, joined me at ACT, we decided we needed to work on our relationship before we worked with other fathers and sons on their relationships. M4M is one of the results. We are both a little intense and competitive, so it was an interesting and fulfilling process.

MAPS for Men is about how our relationships with our fathers shape much of our self-esteem and professional drive and how this impacts a family business. Interestingly, before writing M4M, I had never worked with a female CEO; since writing M4M I now work with two female CEOs.

Succession planning in a Family Biz
Succession in a family business is often the greatest challenge and it impacts many people, from family members to employees. We have been and are currently involved deeply in helping family business founders’ deal with what we call ‘succession anxiety’. David Bork, in his book, Family Business, Risky Business, identified the issue within a family business, “When succession is left to the whims of fate, the family’s empire begins to crumble under waves of emotion”. There are two succession paths, often walked at the same time, management succession and ownership succession.

On average, succession in a family company happens about every twenty years and can create a flood of anxiety, rumours and speculations. In the best of times, succession is a form of stewardship, where our legacy is not limited to what is accomplished in our lifetime, but extends in the hearts, minds and actions of those who follow us. One measurement, in the words of Ken Blanchard from his book, Lead Like Jesus: Lessons for Everyone from the Greatest Leadership Role Model of All Time, is “how well we have prepared others to carry on after our season of leadership influence is completed”.

The endgame and often the most challenging issue in a family business, is the process of transitioning ownership and management from one generation to another. Ivan Lansberg, co-founder of the Family Firm Institute and author of Succeeding Generations: Realising the Dream of Families in Business, emphasises the central problem, “the lack of succession planning has been identified as one of the most important reasons why many first-generation family firms do not survive their founders.” In our work, we address the father-son succession process in a family business as both a management and ownership issue.

Family financial, political and psychological anxieties can be roadblocks and barriers to succession development and execution. John Davis, an expert on family business management and lecturer at Harvard Business School, believes that family elders are appreciated for their wisdom, but not necessarily liked by all the relatives. “Leaders tell me that they have a gratifying but tough and often thankless job. Many successful family business leaders tell me that they spend half of their time working to address family and ownership issues and to maintain unity.”

It is a guarantee that tension will increase during what John Ward and Denise Kenyou–Rouvinez, in their book, Family Business Key Issues, call the “hot phase” of the succession process because of the intense work of combining emotions and economics. Customers, clients, non-family managers, financial institutions and family members can apply pressure. The tension can cause announcements, solutions and directions to be presented before issues are clearly defined and processed. How important decisions are handled and communicated will depend on the family and company culture developed over many years.
Relationships follow predictable stages that can either create advantage or discord. In healthy families, an endowment effect takes place the day a child is born, we give our children special emotional and economic attention simply because they are our children. When an adult child joins a family business this can carry over into the business in the form of an entitlement effect and a special position that can create tension in the family and the business.

Succession anxiety can come from many directions. The father-son team and their advisors, must manage not only the corporate process but also the relationship dynamics. A basic psychological rule is that the first thing to fall into a void, real or perceived, is anxiety. There are two types of anxiety. Normal anxiety, like fear, is essential to the human condition, proportionate to the threat, and disappears when the risk is adjusted or removed. Neurotic anxiety is unspecific, vague and attacks the core foundation of a person’s life.

Rollo May, a minister and one of the best known American existential psychologists, wrote in his book, The Meaning of Anxiety, “Anxiety is the apprehension cued off by a threat to some value that the individual holds essential to his existence.” Succession can be a time of anxiety, when a father is measuring how he lived his life and a son is planning how he will live his life. Spouses, siblings, children, employees and customers will often have an emotional and perhaps a financial stake in the process and outcome.

Working together in a family business can be a long trek of personal development and organisational transformation for a father and son. The succession hot phase can be like be a fork in the road or a mousetrap on a major highway. Relationship issues, like entitlement, parentage and nepotism, must be understood and managed. The primary skills needed, by both the father and son as they move through this process, are high trust and clear communication around ownership and management issues.

Succession benchmarks are driven by time. The first issue is the transition style of the founder/owner, the second is the selection of the next family business leader, (either family or non-family) and the third is in the task of transitioning resources and power to the next generation.

The first step in the transition and succession process is to define the retirement style of the founder/CEO to overcome a sense of impermanence and indispensability. Harvard Business School Professor, Dr. Jeffrey Sonnenfeld, interviewed executives from over thirty of the best-known corporations for his book, The Hero’s Farewell: What Happens When CEOs Retire. He concluded that many chief executives become like folk heroes within their organisation and depart (or not) in four ways.

• Monarchs – who do not leave until they are forced out or die
• Generals – who leave only when forced out, but plan a return to power
• Governors – who rule for a defined term, then pursue other ventures and interests
• Ambassadors – who leave willingly, then returns to a high advisor role

It is naturally tempting, but simplistically dangerous, for founding parents to direct, or coerce, their children into the family business or for children to assume a role in the business without maturity and autonomy. Every founder/parent needs to do a realistic assessment of what the business permanence, its economic potential, governance structure and management systems, would look like with one of more of his or her adult children in control.

Many younger generation members grew up in the business, doing summer jobs and listening to business conversations at the dinner table. This does not qualify them for a serious management role in the company. While blood may be a qualification for entry into the family business, adult children must have the following attributes in order to grow and succeed in the business. The founder parent is in charge of filling out the details on this list.

• Character: trust and communication
• Competence: education and performance
• Commitment: loyalty to the company and family
The question of when a family heir should start working in the family business is one we are often asked. There is no obvious answer. The life cycle between a family business leader and his or her adult child will have an impact on the decision.

Psychological development influences the business relationship between a father and son. John A. Davis, co-author of Generation to Generation: Life Cycles of the Family Business, earned a doctorate from Harvard Business School. Renato Tagiuri received his PhD from Harvard and completed the program in psychoanalysis at the Boston Psychoanalytic Institute, before teaching and writing extensively on the topics of management, leadership and family business.

Davis and Tagiuri used their business and psychological backgrounds to conduct a research project focused on the quality of the work relationship between a father and son. They identified and examined the respective life phases of the father and son based on Erik Erikson’s concept of life stages.
They concluded that the quality of the work relationship varies as a function of the respective life-stage development of the father and son. They presented their research in a paper entitled “The Influence of Life Stage on Father-Son Work Relationships in Family Companies.” At an early age, most sons admire and even worship their fathers. In a family business, this could be the beginning of a thirty-year journey resulting in the father also being the boss.

The successful long-term growth of a family business, as with every organisation, requires turning over power to a successor. Max Weber, the German sociologist, referred to this process as the institutionalisation of charisma and saw it as one of primary challenges of leadership.

Succession in a family business is a process not an event. In the best-case situations, it is a 3-5-year process, where a strategy is in place before the tension or crisis of transition. This requires a realistic assessment of the skill level of their candidates for handling the wealth or business, pragmatic discussion with all involved family members, practical involvement of senior management and balanced advice from outside legal, financial and business advisors.

The paradox is that only a few family companies give serious attention to the task of handing the business down to the next generation. Resistance factors can come from the founder, family owners, senior management teams and/or family members.

The second step of succession—outlining if, when and how a successor from the family will be the next leader—can be a time of celebration or challenge. The heir should be graded against these twelve ideal standards.
1. Innate interest in the business (pre-teens)
2. Natural leadership abilities in the family and school (teens)
3. Exposure and work in the company (late teens)
4. Excellent education and training experiences (early 20’s)
5. Apprenticeship in similar industry (middle 20’s)
6. Success in a comparable business (late 20’s)
7. Desire and commitment to join the family business (early 30’s)
8. Successful progression through different department (mid 30’s)
9. Senior managerial responsibilities (late 30’s)
10. Partnership with the company CEO (early 40’s)
11. Executive and personal leadership respect in the family and company (40’s)
12. Mature succession, the ‘de facto leader’ (mid 40’s)

It is important to determine the qualifications of the successors and to avoid the trap of an inadequate successor, from within or outside the family, such as the following persons.

• Good Son – a person with family loyalty, but limited leadership skills
• Loyal Servant – a conscientious helper, but impotent leader
• Watchful Waiter – a good performer, but with inadequate executive abilities
• False Prophet – a talented person, but with the wrong expertise
• White Knight – an exceptional leader, but with limited commitment to the business

The third step is to create a successful succession. In a family firm this will have four stages.
1. Owner-Management Stage – father is the only family involved in the business
2. Training and Development Stage – the son learns the business
3. Partnership Stage – father and son share percent of ownership and management
4. Power Transfer Stage – responsibilities and control shift to the successor

When family leaders and members work well together in the family and the family business, they can promote a level of leadership transition, company loyalty, brand commitment, long-range investment, effective decisions, rapid action and stewardship impact for which nonfamily businesses yearn, but seldom achieve.

Though we have been involved with many families at their most intense levels, we have never been fired from a case and only once left a case unresolved. The feedback we get is that we are genuine and pragmatic. As financial success increases in a family the relationship complexity and intensity also increases, thus we have worked with some clients over several years.

We are a small consulting firm in a mountain resort town. Professional relationships are key to our success and how to scale is always a challenge.

Company: Aspen Consulting Team, LLC
Name: Edgell Franklin Pyles, PhD Thomas Edward Pyles, MA
Email: [email protected]
             [email protected]
Web Address: www.AspenConsultingTeam.com
Address: Box 503, Snowmass, CO USA 81654
Telephone: Edgell +1 970-948-1415, Tom +1 303-518-3520

Winners Announced October 2016
Private ClientWealth Management

Winners Announced October 2016

Best in Financial Communications & Investor Relations 2016
Company: Capital Link, Inc.
Name: Nicolas Bornozis
Email: [email protected]
Web Address: www.capitallink.com
Address: 230 Park Ave, Suite 1536, New York, NY 10169
Telephone: 1 (212) 661 7566

Business Elite – CEO of the Year 
Name: Company Fusion Ltd 
Email: [email protected] 
Web Address: www.companyfusion.com
Address: 3rd Floor, Tring House, 77-81 High Street, Tring, Hertfordshire HP23 4AB United Kingdom 
Telephone: 44 (0)207 993 3368

International Real Estate Excellence 
Company: UK Legal Estates
Name: Mohammed Usman 
Email: [email protected]
Web Address: www.uklegalestates.com
Address: 99-101 Wolseley Road, Sheffield S8 0ZT
Telephone: 0114 2585750

International Real Estate Excellence Awards
Company: Zest Sales Lettings & Investments
Name: Glenn Perry
Email: [email protected]
Web address: www.zestlovesproperty.com
Address: 1a Mile End, London Road, Bath, BA1 6PT Telephone: 01225 481010

Rising Cost of Risk in Wealth Management
High Net-worth IndividualsWealth Management

Rising Cost of Risk in Wealth Management

Can you tell us about what your company does?

As innovative online investment managers, we offer clients direct low cost access to high end wealth management that is smart, commonsense and modern. Everything we do is underpinned by 100%
transparency and treating our clients fairly.

How long has the firm been going for and where are your offices based?

The company was launched in 2009 as a reaction to the 2008 financial crisis and a desire to challenge the status quo. We are based just off Sloane Square, Westminster, in London which is very central but not in the traditional heartlands of either Mayfair or the City and the cultures that purvey the traditional establishments there.

What kind of clients do you serve and how do you approach them?

Investors who come to us are looking to bypass expensive advisers, layers of inefficiencies and high fee underperforming traditional active funds. For UK clients our entry level is £15,000, either direct or via an ISA or SIPP wrapper. For overseas clients our entry level is £150,000 or the equivalent in Euros or US Dollars. We are also delighted to work with corporates and charities but whatever the size of our clients, the same levels of fees, openness, approachability and respect apply to all.

Our approach is simple, straightforward and personal. We do not believe that anyone should invest with us unless they fully understand our offering and appreciate that no manager has a crystal ball or can predict the future. What we aim to do is to minimise costs and risks, preserve capital and produce consistent positive returns. Everything we do is underpinned by 100% transparency and treating our clients fairly.

How are wealth management firms fighting battles on two fronts; financial regulations resulting in increasingly squeezed margins, and – fundamentally – the rising cost of risk?

As originators of the True and Fair Campaign, launched in 2012, calling for 100% transparency of fees and holdings, as well as a Code of Ethics, we do not believe that financial regulations have created a truly competitive, or customer centric, market in fund management.

The industry has operated more like a cartel, profiting from a lack of price competition, new entrants, and embedded conflicts of interest.

Rather than take a strong hand on regulation, the UK regulator has seemingly deferred its responsibilities to conflicted trade bodies. The end result of this dereliction of duty is a complete lack of transparency of fees or holdings, product mislabelling, closet index tracking, inflated research costs and risk and suitability tools that are not fit for purpose.

The industry only has itself to blame for increased regulation as they have failed to put their own houses in order.
In terms of margins, the average operating margin for a UK drugs company valued at more than £2 billion is 23.4%, compared to a stonking 44.8% for a UK large fund management company in this bracket. It is no wonder that the industry is so reticent to be honest with their customers regarding their charges and fights any transparency reforms – like turkeys they do not seem to want to vote for Christmas.

To what extent do you agree that as many as 81% of wealth managers cite conduct risk as a significant focus in their firm. With this is mind, how is your firm tackling risk in your company?

According to the FCA, conduct risk centres on Politically Exposed Persons (PEPs), anti-money laundering and sustainability, but I think it can be encapsulated by how a wealth manager’s proposition and service builds and maintains trust. We focus on trust because it is fundamental to everything.

We tackle risk by ensuring we treat our customers fairly, abiding by the FCA’s very pragmatic overarching principles of ‘fair, clear and not misleading’ and apply the ‘would I tell or sell this to my mother’ test. I believe actions speak louder than words. So our proof of promise is that we invest significant sums of our own money alongside clients, on exactly the same terms and fees.

If a firm is confident they are delivering on these principles, they should not be concerned about conduct risk – the issue is that behind the slick marketing most are not putting customers first, so they should be worried.

How you can give our readership a high return on their investments?

We cannot control or predict future returns – no one can. In our investment team’s long experience, the best recipe to preserving wealth and achieving consistent returns is by staying vigilant, focusing on fundamentals, having a contrarian mind-set, concentrating on asset allocation not stock picking, which accounts for over 90% of returns, and constantly seeking to minimise costs and risk.

What challenges lie ahead for your company in 2016?

As a new challenger, our challenge is connected with brand building.

Our seven-year track record proves our innovative approach delivers, we just need to continue building consumer / investor awareness without the deep pockets of the bigger traditional brands.

Another challenge is operating a 100% fee transparency model with no hidden costs at any level when we are not playing on a level industry playing field. Traditional wealth and investment managers continue to hide between 50 – 85% of their true Total Costs.

Can you outline any specific industry based challenges you are facing now and in the future?

Via our True and Fair Campaign, which led to us contributing text for Article 24 in MiFID II, as well as the fee calculator in PRIPS, the industry is facing a seismic change in 2018. All wealth and investment managers will have to show all costs in one Total Cost number. This will be a huge challenge for tradition wealth managers as their clients will realise the fees they think they are paying are typically only one third of the true total. New entrants such as SCM Direct will finally be competing on a level playing field, and investors will finally be granted the basic consumer right of knowing how much they are paying.
Looking ahead to the future, if we can continue to thrive as a company and identify any opportunities in the market from which we can achieve more success for both our clients and ourselves, without compromising our principles and ethics, we shall be delighted.

Company: SCM Direct
Name: Gina Miller
Email: [email protected]
Web Address: www.scmdirect.com
Address: 2 Eaton Gate, Westminster SW1W 9BJ
Telephone: 44 (0) 7838 8650

Three Quarters of High-net-worth Individuals plan to Invest more in 2016
Private BankingWealth Management

Three Quarters of High-net-worth Individuals plan to Invest more in 2016

When asked “Do you intend to invest more in the first six months of 2016?” 76 per cent of clients contacted by deVere Group, one of the world’s largest independent financial advisory organisations, said Yes.

14 per cent responded No and 10 per cent did not yet know.

767 people with investable assets of £1m or more from countries including the UK, the U.S., Australia, the United Arab Emirates, Qatar, Hong Kong, South Africa and Switzerland were surveyed in January 2016.

Of the findings, Nigel Green, founder and chief executive of deVere Group, comments: “The results of this poll clearly show high-net-worth individuals now have a strong appetite to use the cash that they have held in reserve to top up and diversify their investment portfolios.

“The survey overwhelmingly demonstrates that they are aware of the opportunities to buy high quality equities at the prices they want to pay. They are seeing more favourable choices to boost their portfolios for the longer-term.

“It is a sound investment strategy to put new cash to use in the market whilst prices are relatively low. Capitalising like this on the attractive long-term performance of stock markets is a time-honoured way that investors can successfully build wealth.”

He adds: “No-one can predict exactly what the markets will do in the immediate future and it’s too early to say if this is or isn’t the bottom of the market. But our poll suggests that high-net-worth investors believe that it is close to the bottom and that there are major buying opportunities.”

The deVere CEO concludes: “It would appear that many high-net-worth individuals kept their powder dry during 2015, as the markets rose then fell and as we braced ourselves for the first Fed rate hike in almost a decade. But any qualms they might have had last year are now countered by more attractive prices.

“They are moving away from a preservation approach by diversifying their investment portfolios. As shown by decades of financial market data, this is the correct approach to risk management.”