Category: Private Banking

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BankingCash ManagementPrivate BankingPrivate Funds

10 Minute Money Challenges to Get Your Finances in Order

order finances

10 Minute Money Challenges to Get Your Finances in Order

Auditing finances can sometimes feel like a huge chore, and things may have been forgotten about or pushed to the bottom of the to-do list during the pandemic. This guide by KIS Finance has listed some very easy and quick 10-minute money challenges that people can do in order to get their finances back on track if things have started to get out of control.

Check your direct debits and standing orders

A great place to start is by checking through all of your direct debits and standing orders to make sure there’s nothing you’re paying for which you shouldn’t be. You’ll be surprised at how easy it is to miss some payments coming out of your account, especially if they’re small and you’ve got a lot of them, but it’s so important to make sure you’re aware of every single one.

Go to your mobile banking app and go through the lists of direct debits and standing orders. Look at every payment and ask yourself three questions: do you need it?, can you afford it?, and is it worth it?
Bills are obvious; you must pay them. But do you have a gym membership which you only use a couple of times a month? In which case, it may be worth researching into whether you can buy a day pass or pay for gym classes as you go – this could work out much cheaper if you don’t go very often.

Subscription services is another category to look at. Are you paying for three streaming services that all do the same thing? If so, can you live with just one or two of them?

This task shouldn’t take you very long at all, and you’ll be surprised at how much money you can save.

Check for any recurring payments

Another important thing to check for are any recurring payments – otherwise known as Continuous Payment Authorities (CPAs). They work essentially like a direct debit, but they’re different in the fact that they use the long card number instead of your account number and sort code and the company can take money whenever they think they’re owed.

The reason you need to do this separately is because they won’t appear in the lists of direct debits or standing orders, they will appear on your bank statement as if they’re a debit card payment. Most will be taken on a monthly basis, so just have a look through the last few months of bank statements and see what’s coming out regularly.

You may have purposefully set some of these up, Amazon Prime and Spotify are examples. In which case, apply the same three questions as mentioned in the point above and cancel any that you can live without.
However, you may have set some up by mistake and these are important to get rid of. This may have been a free trial that you forgot to cancel, or some retail websites have in the small print that you will be signed up to a monthly CPA after making your first purchase and you didn’t realise. You do have the right to cancel any CPAs that you no longer wish to pay.

Compare your bills

If you’re not somebody who compares suppliers and just let your bills roll over every year, then this task is a must.

In some cases, the difference between the cheapest and most expensive tariffs for products like gas, electricity, and insurances can be hundreds of pounds a year. So, a quick check through a comparison website could make a big difference to your finances.
This should be done just before each of your current tariffs/policies come to an end, so you don’t end up paying any early exit fees. You’ll normally just have to fill out some personal details and any information required for the specific product, then you’ll be given a list of all the providers where the cheapest one is normally at the top. With most comparison websites, they will do a lot of the work for you when it comes to switching, so you just have to select which product you want and make any relevant payments.

This won’t necessarily have any immediate effects on your finances, but it will definitely benefit you in the long run.

Switch bank accounts

Switching bank accounts sounds like a massive job, but most of the major banks now offer an online 7-day switching service where they do everything for you, so actually it doesn’t take much time at all and it’s definitely worth the effort.

All you have to do is go to a comparison website which lists all of the available current accounts and compare who’s offering the best interest rates, perks, and functions. It’s important to do this every once and a while and especially when you have a change in financial situation, for example, an increase in income or a big change in the amount you have saved.

Once you’ve decided on the best current account for you, simply go to their website and say you’d like to open an account with them and then they’ll do the rest. They’ll swap over all of your regular payments like direct debits and standing orders and the only thing you’ll have to do is give your new account details to your employer.

Remove your card details from websites

Most online retail stores give you the option to save your card details after you’ve purchased something in order to make the payment process faster next time. Whilst it’s convenient that you don’t have to fill out the details manually every time, it can actually make you spend more when all the effort is taken out of the process.

If you struggle with spending too much and you’re a bit of an impulse shopper, take some time to go through the websites where your card details are saved and remove them. Then, next time you come to purchase something from that website, having to get your card and fill out the details will just give you a little extra thinking time as to whether it’s something you really need.
This isn’t something that will dramatically change your financial situation, but it is something that will help towards curbing the spending if that’s something you struggle with.

pension
FundsPensionsPrivate BankingWealth Management

UK Gender Income Gap for Single Pensioners Widens by Almost 20% in Four Years

pension

UK Gender Income Gap for Single Pensioners Widens by Almost 20% in Four Years

Men over the age of 75 receive £114 a week more from their pension income than women of the same age, according to a new report.

Single male pensioners receive up to 26 per cent more income than female pensioners, according to official data compiled by digital wealth advisory firm, Fintuity. The findings, analysed using data compiled by the Office for National Statistics, reveals that the gender pension gap between single men and women was only eight per cent in financial year (FY) 14/15, noting a rise of 18 per cent in four years.

In 2018/19, the average incomes for males, who were under 75 and 75 or over, were £441 and £429 per week, respectively during this period. At the same time, these figures were significantly lower for the same age groups of women: their average income per week reached £333 for those under 75, and £315 for 75 or over.

Furthermore, according to analysis from Fintuity, a woman in her 20s would need to save approximately £1,300 extra per year in order to close the gender pensions gap. However, this average amount increases depending on age. For example, the average 30 year old woman would require an additional £2,000, a 40 year old woman would require an additional £2,900 and a 50 year old woman would need to acquire a further £5,300 in order to close the gender pensions gap.

Gross income of single pensioners consists of different sources, including; benefit income, occupational pension income, personal pension income, investment income and earning income. According to the most recent pensions data, in FY 18/19 occupational pensions income for men was on average 35 per cent higher than women, compared to 23 per cent four years prior.

The personal pension income gap was 63 per cent in FY 18/19, compared to 46 per cent in FY 14/15, and, the investment and earnings income gap between male and female pensioners increased from five and eight per cent in FY 2014/15, to a massive 61 and 74 per cent respectively. Suggesting that women are not as capable of making savings and investments due to low income which results in lower level of pensions.

Ed Downpatrick, Strategy Director, Fintuity comments:

“Despite government initiatives to improve the pensions income for women, it’s clear that no amount of support programmes can make up for the occupational gender disparity in the UK. This problem needs to be tackled head-on, with correct support initiatives put in place to enable women to get a much fairer deal.

“With Fintuity, women and men of all ages can receive professional, yet affordable, financial advice in order to see what options are available to them so that they can manage their pension income. All of this can be conducted online, via our digital platform, making professional financial help more accessible than ever.”

For more information on how to effectively save, spend wisely, understand alternative income routes, or improve monthly pension payments, please visit: https://fintuity.com/ 

banking
BankingPrivate BankingWealth Management

Quintet opens for business in Switzerland

Quintet Private Bank, headquartered in Luxembourg, operating in 50 European cities and parent of London-headquartered Brown Shipley, has opened for business in Switzerland.

The launch of Quintet in Switzerland follows the
successful closing of the acquisition of Zurich-based Bank am Bellevue – the
wealth management business of the Bellevue Group – including approval of the
transaction by the relevant regulatory authorities.

Switzerland’s newest private bank, located in the
heart of Zurich’s financial center, will seek to expand Bank am Bellevue’s base
of domestic and international clients, leveraging the country’s status as a
global wealth management hub and Quintet’s own family of leading private banks.

Under the leadership of CEO Emmanuel Fievet and with
some 40 staff, half of whom formerly served at Bank am Bellevue, the firm aims
to carve a niche in this highly competitive space by combining the agility that
comes with smaller size and the group’s financial resources and reach.

The Swiss firm is actively recruiting additional staff
and intends to double its current headcount over the next 12 months. According
to Fievet, Quintet is placing particular emphasis on identifying experienced
relationship managers who share its commitment to earning the trust of the
individuals and families it serves.

In Switzerland, Quintet aims to define a new standard
in private banking by combining a highly personalized approach with
independent, unbiased advice. With firm in-house investment convictions and
open architecture, clients have access to the solutions that are right for them
– provided by a team that is passionate about helping them achieve their goals
through an innovative investment process tailored to each client’s individual
requirements.

“Today, as we mark the closing of this important
transaction, we are opening new doors of opportunity for people with an
entrepreneurial mindset,” said Fievet, a member of the Quintet Group Executive
Committee since October 2019 who earlier served as CEO and Head of International
Private Banking at Edmond de Rothschild (Suisse). “With the right team,
corporate culture and financial resources – and with a long-term horizon – we
have a unique opportunity to challenge the status quo.

“I am very excited about building a new and different
kind of private bank, which is small enough to be truly personal and big enough
to offer access to the world,” he said. “In partnership with my colleagues here
in Zurich and across Europe, we will focus on what matters most to our
stakeholders, cutting through complexity, embracing diverse perspectives and
growing our business – one client at a time.”

“The launch of Quintet in Switzerland is a milestone
for our firm,” said Jakob Stott, Group CEO and member of the Board of Directors
at Quintet Private Bank, which will also open its first branch in Copenhagen
later this year, subject to regulatory approval.

“Even as we continue to invest in great people, geographic expansion and long-term growth, we will keep our eyes firmly fixed on the real prize: Doing the right thing – and not just the easy thing – for the individuals and families we serve.”

About
Quintet Private Bank:

Quintet
Private Bank (Europe) S.A., founded in 1949 and staffed by 2,000 professionals,
is headquartered in Luxembourg and operates in 50 European cities, spanning
Belgium, Germany, Luxembourg, the Netherlands, Spain, Switzerland and the UK.
Widely recognized as a private banking leader, Quintet serves wealthy
individuals and their families, as well as a broad range of institutional and
professional clients, including family offices, foundations and external asset
managers.

About Brown Shipley:

Brown Shipley
is a wealth manager offering clients informed financial advice and tailored
services on all aspects of wealth planning, investment management and lending.
Brown Shipley has offices in London, Manchester, Birmingham, Cambridge, Leeds,
Edinburgh, Norwich and Nottingham; and a heritage dating back to 1810. For further information, please visit: www.brownshipley.com

For
further information, please visit: www.quintet.com

Cash Isa
Private BankingPrivate ClientWealth Management

Death Of The Cash ISA – Big Banks Are Struggling To Cope With The Mass Cash ISAodus

Cash Isa

Death Of The Cash ISA – Big Banks Are Struggling To Cope With The Mass Cash ISAodus

The latest market insight and research from peer to peer lending platform, Sourced Capital of the Sourced.co Group, has revealed that a mass exodus of Cash ISA investors submitting transfer out requests from their Cash ISAs is causing a backlog with the big bank lenders.

Sourced Capital was recently advised by HSBC that transfers were taking a while to process and were requesting no calls for updates due to the substantial backlog, yet further indication of the death of the Cash ISA as investors look for more lucrative options.  

This is a trend that has been apparent for some time due to record low-interest rates and one that will no doubt be exacerbated with the Bank of England’s decision to keep rates frozen yet again at 0.75%. 

In fact, since 2008 the number of accounts subscribed to a Cash ISA has declined every year except one, with the total number down -36.38% all in all, averaging an annual decline of -4.69%.  

Some of the biggest annual declines have come over the last year and the year prior to that, with the number of Cash ISA accounts dropping by a notable -8.22% and -16.19% respectively.

Prior to the economic crisis, available rates averaged at 5%, but in more recent times this return has diminished to around 1.45%.

It’s clear that the preference of investing in a Cash ISA is well and truly on the slide and those looking to make their money work harder are opting for alternative investment options like the Innovative Finance ISA. 

The IFISA is a category of ISA which was launched in April 2016 for UK taxpayers. Previously, there have been two main types of ISA: Cash ISAs and Stocks and Shares ISAs. Similar to these ISAs, the IFISA allows you to invest money without paying personal income tax. This enables you to invest your money into the growing peer to peer market. 

Like cash ISAs Each tax year, you get an allowance of up to £20,000 to put into IFISAs which you can distribute across your different ISAs should you wish to. In addition, you can transfer your previous year’s ISA investments into your IFISA and while your capital is of course, at risk, an IFISA can bring returns of as much as 10-12%.  

Founder and Managing Director of Sourced Capital, Stephen Moss, commented:

“A prolonged period of extremely low-interest rates has been great for some and has helped stimulate borrowing and spending activity, most notably across the UK property and mortgage sectors. However, it hasn’t been great for those attempting to accumulate a sizable savings pot with the return on their hard-earned cash remaining really rather poor.  

It comes as no surprise then that the declining health of the Cash ISA seen in recent years has now progressed to an almost fatal level as more and more investors remove their cash and look elsewhere for a more favourable return. This exodus has been spurred by more innovative options providing a better return and has become so prevalent that even the biggest lenders are struggling to cope with the paperwork.”  

CASH ISA – Number of accounts subscribed in current year (thousands)

Period

Number of accounts subscribed in current year (thousands)

Change / growth (yearly)

2008-09

12,234

x

2009-10

11,426

-6.60%

2010-11

11,859

3.79%

2011-12

11,187

-5.67%

2012-13

11,682

4.42%

2013-14

10,481

-10.28%

2014-15

10,288

-1.84%

2015-16

10,118

-1.65%

2016-17

8,480

-16.19%

2017-18

7,783

-8.22%

Total Growth

-36.38%

Average Annual Growth

-4.69%

aspen
BankingFamily OfficesPrivate Banking

Emotional Economics: The Challenges of Mixing Love and Money in Family Businesses and Legacy Families

aspen

Emotional Economics: The Challenges of Mixing Love and Money in Family Businesses and Legacy Families

Thirty years ago, the family business started by Daniel’s grandfather and great uncle was sold. Daniel and his three siblings received nearly sixty million US dollars each, as did each of their cousins. In 2016, Daniel, who had created a successful real estate and development business and on the advice of his financial and tax advisors, transferred to his four adult children twenty-five million US dollars each. The age range for the adult children spanned nine years, and one daughter worked in Daniel’s business. From the day gifting was announced it has resulted in family disruption. The surface discord resulted from a perceived economic injustice concerning “the time value of money” since all siblings received an equal share rather than a share based on their age. But the deeper disharmony stemmed from an unresolved historical emotional impasse between the father and one of the adult children dating back to the child’s teenage years. 

As Aspen Consulting Team, (ACT) we help members in family businesses and legacy families address the psychological dynamics of love and money, the interplay between emotions and economics, in the family system. 

Love and money are symbiotic and immiscible. They are connected, but do not mix naturally. The wrong mixture results in entitlement, disruption, and conflict; the correct mixture results in gratitude, opportunity, and resilience. The wealth connection in a family business and/or legacy family requires
Emotional Economics: The Challenges of Mixing Love and Money in Family Businesses and Legacy FamiliesMar19081
adult children to stay integrated in their family of origin much longer than typical families. The financial interdependence provides great benefits and at the same time creates complexities. A basic operating principle in our work is that the deeper the economic interconnections the higher the potentiality for emotional conflicts.

Every family business and/or legacy family is a system, a combination of small subset systems (individuals) connected to mid-size systems (family units), nested within larger systems (extended and generational family units), and linked to much larger systems (business and wealth management). Everything is connected and influenced by everything else. Within this system transitioning wealth takes place at two levels where the highest goal is to provide an inheritance without creating entitlement. 

• The “external” work is wealth creation and management. The task of continuing the vision set by the founders, operating with the values that made the family successful in the first place, protecting assets, defining financial goals, policies, and strategies, adjusting to taxes and market changes, understanding investments and ROI, implementing shareholder agreements and distributions, creating foundations and estates, and increasing the financial portfolio. Legal and financial advisors help with this work.
• The “internal” work is relationship harmony and management. The task of connecting and inspiring family members, strengthening the family culture, adapting to generational values, maintaining agreements, managing interpersonal stress, working as a team, responding to special demands, and enjoying the process as members of each generation face opportunities and transitions. This is the space in which ACT works.

There are always two parallel objectives in our work. The first objective is to create guidelines to “prevent the emotional tail from wagging the economic dog.” The second objective is to “not cut off the emotional tail.” Emotions, when accessed correctly, are powerful guides and cannot be ignored without damaging relationship harmony and overlooking important decision-making data. There are more emotions in an economic experience than meets the mind’s eye.

Emotions are actions, many of them are public and visible to others as they are expressed in body language or are verbalized. Feelings, on the other hand, are always hidden, unseen and perhaps unrecognized, to anyone other than their rightful owner. Feelings are the most private property we own. Emotions precede feelings, much to the common mistaken view. “We have emotions first and feelings after because evolution came up with emotions first and feelings later.”2 We, and our emotional system, are designed to solve the basic problem of how to continue life by being either competitive or cooperative and on the economic survival level this involves money. 

A study conducted with children, ages 3 to 6 years, showed that they did not understand the economic value of money, but they comprehended its emotional value. The first group sorted coins and banknotes, while the second group sorted buttons and candy. The children who worked with money demonstrated an increase in egotistical behaviors, were less eager to help the researchers, corralled more awards for themselves, were less likely to share their rewards with the other children, but were more persistent in completing individual tasks. Handling money reduced feelings of helpfulness and generosity while increasing perseverance and effort. These results are very similar to the results of a comparable study that looked at adult behavior. According to Agata Gąsiorowska, economic psychologist and a coauthor of the study:3

“Money is such a strong symbol in the world based on economic exchange that even small children are influenced by its significance. Money causes people to switch from the view of the world that values close relationships to the world that values market exchange, where the notions of ‘me’ and ‘my gain’ are in the center.”

Emotions, often considered “gut feelings” or conscious experience, really involve many systems
within our brain. Emotions create a burst of activity devoted to one thing, survival. Emotions trump non-emotional events, like thought, reason, and decision-making, even in the most rational analyst and business leader, because they are older in the human developmental process than economics. Emotions kept our ancestors alive long enough to create and give us an inheritance. Emotions, even those in our memory system, trigger certain features, feelings, and stimuli that are designed for homeostasis. 

Homeostasis is a self-regulating process by which our biological and psychological systems try to maintain stability while adjusting to conditions that are optimal for survival and success. In love and war, as in family and business, when homeostasis is successful, individual and collective life continues and flourishes. There are “natural triggers” like the sight, sound, and smell of a predator and “learned triggers” like the sight, sound, and smell of money that aid us in the pursuit for homeostasis.4

About 10,000 years ago, when the first farmer created more than his or her family could consume, the economy of the marketplace began. Before the agricultural age, our ancestors were daily hunters and gatherers, collecting and consuming without the ability or surplus to “store up” resources. When farmers took their extra bags of gain to the marketplace they needed a symbol of exchange. In time, this symbol became money. 

From that time forward, there are few interactions or decisions in a legacy family that do not involve money and a drive for the family to flourish. The recent college admission scandal in the United States is a brazen example. 

Money is an emotional trigger in families and how we react to it may be either positive or negative. In order to have a positive environment, family leaders must work toward stability between two social systems that continuously change as individuals change. The two social systems are the homogeneous system of being similar, the drive for family unity, and the heterogeneous system of being dissimilar, the drive for personal autonomy. These systems create interpersonal tension and ambiguity, along with creativity and drive that must be anticipated and proactively managed in a legacy family and family business. Wishing that anxiety or conflict would depart the family system or that love and harmony would show up is usually not enough. 

The tension among family members is from four psychological positions; Fight, Flight, Freeze and Flow . Three positions, Fight, Flight, and Freeze , are an extension of our evolutionary survival system. The fourth area, Flow, is the way to happiness and success.5 It requires psychological awareness, behavioral adjustment, and positive action on the part of family members and leaders and is difficult to create and maintain as family members grow and change.

• Fight: When both personal confidence (autonomy) and relationship security (unity) are low, one’s psychological position is hostile-dependent. This shows itself in behaviors of “moving against” others in the family or family system. The feelings and behaviors expressed are often confusion, anger, resistance, and opposition.

• Freeze: When personal confidence (autonomy) is low and relationship security (unity) is high, one’s psychological position is co-dependent. This shows itself in behaviors of “moving in” with others in the family or family system. What we often see is enmeshment, clinginess, entanglement, low selfesteem, fear, and anxiety.

• Flight: When personal confidence (autonomy) is high and relationship security (unity) is low, one’s psychological position is counter-dependent. This shows itself in behaviors of “moving away” from others in the family and/or family system. This is seen in acts of isolation and detachment, which can look like independence, if it were not for the financial dependence. 

• Flow: When both personal confidence (autonomy) and relationship security (unity) are high, one’s psychological position is inter-dependent. This shows itself in behaviors of “moving with” others in the family and/or family system. This is experienced as cooperation, maturity, accountability, and resilience. This, of course, is the most optimal position for family members.

For economic success and relationship harmony within a legacy family or family business, family members must purposefully address emotional historical impasses, resolve sibling rivalries, find comparable values, and work toward mutual goals. The psychological tools for doing this work are what we have termed “thick trust” and “mature adult communication.” 

Long-term success in family and business life requires a willingness to trust one another. The question is how we measure the trust. Scientific research shows that most people’s accuracy in discerning if another person can be trusted is imprecise. Much of the time, we have weak or no guidelines other than a set of emotional clues we have used in the past. Trust is dynamic—not static. The more we have at risk, the greater the need for trust. It is helpful to think of trust in three levels.6

1. One-Way Trust. Only one person has trust on the line. If the other person cannot be trusted to follow through on promises or commitments the relationship ends, as do any potential gains or losses. 

2. Mutual Trust. This is a reciprocity style, often called quid pro quo and “tit for tat,” for regulating equilibrium in transactional relationships. It is the most familiar type of trust in business, worked out among and between the same parties over a long period of time. Both parties play the roles of giver, taker and matcher, and exchange these roles for mutual benefit. When trust is broken, the relationships and transactions end.
3. Thick Trust. This is the highest form of trust and is required for family members to work together for the long-term. Family business relationships are complex because they occur across different settings and include a diverse series of interactions, both personal and professional. Action at one level may have ramifications at other levels, and every action has the potential for benefit or harm. Trust at this level, like in a marriage, requires the strength, resilience, and skill of mature character to overcome and forgive mistakes. 

Trust and trustworthiness are forms of social and relationship capital. A subjective way to think about your trustworthiness or that of another person in a family business is the following formula. Personal Character plus Competency Skills divided by Self-Interest plus Psychological Awareness plus Behavioral Adjustment determines Thick Trust.  

TT=[(PC+CS)÷SI]+(PA+BA)

A solid foundation of trust allows communication to be clear, constructive, and proactive, what we call Mature Adult Communication (MAC). We suggest that family members have a formal agreement to use MAC when important economic and emotional decisions need to be made. The first step in MAC is to clearly define the issue. Much of what is called “failure to communicate” is not having a clear and collective understanding of the problem or issue. The second step is to explore all the psychological dynamics, emotions, and feelings around the issue. This is often the hardest step and may require outside consultation. The third step is to have full commitment by all family members involved in the issue to the decision-making process (who, how, and when a decision will be made) and to make a clear and firm decision, with an evaluation process if necessary.

MAC eliminates what statistician and author Nassim Taleb calls narrative fallacy, “ a wrong ruler will not measure the height of a child. ”7 This is how we fool others and ourselves by a flaw in a story of the past, often emotional, which shape our decisions for the future. An accurate diagnosis of the problem sets the stage for the correct treatment. Decisions that address the wrong description of the situation can be made with a high level of determination, confidence, and authority, but will still be defective and require correction at a later time with greater expense. 

Creating, managing, and transitioning wealth within a family is a balancing act. It requires addressing the struggles not only among and between individual family members, but the tension created by money. The connections from our emotional system to our cognitive system are stronger than the connections from our cognitive systems to our emotional system. If this were not true, Daniel’s adult children would not have entered into the discord that has alienated and estranged family members.

aspen
Thomas Edward Pyles, MA & Edgell Franklin Pyles, PhD

Edgell and Tom, a father and son team, consult with family businesses on leadership strategies, particularly succession, and with legacy families on the complexities of mixing love and money. They are the co-authors of MAPS for Men: A Guide for Fathers and Sons and Family Businesses. Fourth generation business owner Charles S. Luck, IV, wrote, “MAPS for Men is one of the most comprehensive guides to families in business that I have ever seen.”

“Edgell and Tom weave a tapestry of insight for anyone seriously interested in building family relationship bridges that endure generational transitions.” Dennis Carruth, President, Carruth Properties Company. 

“I have clearly seen results. In all cases it is an inflection point to a fresh and positive perspective.” Chris Branscum, Family Office Advisor, JD, CPA.

“I have worked with Edgell for more than twenty-five years. He has provided counsel to our family, including our two adult sons, my business, and my YPO group.” James Light, Chairman, Chaffin Light Management Company. 

“Our family legacy is now in the fifth generation. I truly appreciated Edgell and Tom’s work. The lessons learned will bear fruit for many years and generations to come.” David Hardie, Founder and CEO, Hallador Management, LLC.

“The psychological and spiritual counsel offered by Edgell and Tom has proved very helpful to my family and business.” Jeff Wandell, Founder and CEO, Prairie Gardens and Jeffrey Alan’s. 

“Dr. Edgell came into my life in a time when I had failed and did not like myself in many ways. He helped me, at the age of 58, on a new journey of bliss.” M. Ray Thomasson, PhD, President, Thomasson Partner Associates, Past President, American Association of Petroleum Geologist, Past President, American Geological Institute.

“Edgell enriches lives of those he touches in a most profound way.” Paul Schorr, Past President, Chief Executives Organization.

Sources:

1. Erik Erickson, Identity, Youth, and Crisis.

2. Antonio Damasio, Looking for Spinoza: Joy, Sorrow and the Feeling Brain.

3. The study was conducted by an international research team, including: Agata Gąsiorowska, Tomasz Zaleśkiewicz, and Sandra Wygrab, SWPS University in Wrocław, Lan Nguyen Chaplin, University of Illinois, and Kathleen D. Vohs, University of Minnesota.

4. Joseph LeDoux, The Emotional Brain, The Mysterious Underpinnings of Emotional Life.

5. Mihaly Csikszentmihalyi, Flow, The Psychology of Optimal Experience.

6. Elinor Ostrom and James Walker, editors, Trust & Reciprocity, Interdisciplinary Lessons from Experimental Research.

7. Nassim Taleb, “A Map and Simple Heuristic to Detect Fragility, Antifragility, and Model Error.”

Online banking
BankingCash ManagementPrivate BankingWealth Management

For UK Consumers the Front Door of a Bank is Now Its Mobile App, Not Its Physical Branch

Online banking

For UK Consumers the Front Door of a Bank is Now Its Mobile App, Not Its Physical Branch

 

72 percent of UK residents said they do the majority of their banking online and 77 percent consider switching to digital-only providers.

Marqeta, the first global modern card issuing platform, announced the results today of its new digital banking survey, which found that demand for physical bank branches continues to decline as digital banking platforms offer more seamless access to remote money management tools.

The research, conducted by Propeller Insights on behalf of Marqeta and surveying 800 UK and 1200 US consumers, found that 74 percent of consumers expect to use their mobile app regularly in the next three months, in comparison with just 22 percent who expect to visit a physical branch. The majority of respondents (77 percent) said that they will consider digital-only platforms when they next switch banks.

Most UK consumers (72 percent) also confirmed that they now complete almost all of their banking online, with the younger generation leading the way. Almost two-thirds (65 percent) of UK respondents aged 18-34 say they use a digital bank as either a primary or secondary banking option. Of those that use a digital bank in tandem with a traditional option, 56 percent of them said that they were more satisfied with the service provided by their digital bank. 

Trends in digital banking have also seen UK consumers make the switch to digital faster than their US counterparts. The survey found that:

• Only 21 percent of UK respondents, expect to visit a physical bank branch in the next three months, compared to 30 percent of US respondents.

• 72 percent of UK respondents said they do the majority of their banking online, while 62 percent of US respondents said the same. 

This confidence in utilising digital banking platforms is driving new expectations for innovation in the banking and fintech sector, as the vast majority of UK respondents (86 percent) say they want to see new technology from their bank in the future.

Marqeta’s survey also show that given how new digital banks are, consumers see the risk factor around digital banking as somewhat of an unknown. 51 percent of UK consumers said they felt like a digital bank was a riskier place to store their money, while 41 percent said they would limit how much money they deposited in a digital bank. 78 percent of UK respondents said they considered a bank’s security and reputation before giving them their business, with 30 percent saying that a lack of market track record was holding them back from making the move to a digital-only bank.

“This research demonstrates that UK consumers are ready to go digital with their finances, but digital banks still must work hard to innovate as we become an increasingly cashless, mobile-first society,” said Ian Johnson, Head of Europe at Marqeta. “Apps and payments cards account for an overwhelming majority of spending and money-management actions, and the rapid rise of new wave challenger banks is a major drive of this of this. At Marqeta we see the modern card issuing market being worth as much as $80 trillion globally by 2030, which is going to continue to create unprecedented demand for innovation and new offerings in banking.”

Wealth and Finance
Cash ManagementPensionsPrivate BankingReal EstateWealth Management

The Mosaic of Modern Wealth: Wealth Advisers Must Keep Pace with Globally Mobile Clients

Wealth and Finance

The Mosaic of Modern Wealth: Wealth Advisers Must Keep Pace with Globally Mobile Clients

 

By Axel Hörger, CEO Europe at Lombard International Assurance

The world’s wealthiest people are on the move. According to this year’s Knight Frank Wealth Report, 26% of ultra-high-net-worth individuals (UHNWIs) are planning on emigrating in the next year. An astounding 36% already hold a second passport. For many, the ability to move their lives, families and assets freely around the world is the new norm.

This trend has been growing for well over a decade, fuelled by increased competition between countries seeking to attract the world’s wealthiest and drive investment. From France to Thailand, countries are seeing the benefit of adopting competitive tax regimes, investment-based visa schemes, and fast-tracked citizenship programmes. Since 2000, 20 EU member states have implemented these types of policies, resulting in approximately $28 billion in foreign direct investment.

For countries like Malta and Cyprus, this has led to a much-needed economic boost as thousands of wealthy individuals have invested in their local economies in return for residency or citizenship. In Portugal, attractive tax rates have in part led to a remarkable economic rebound, with GDP growth set to be one of the highest in Europe, while Lisbon and Porto consistently top the list of most attractive places to live in the world. As countries look to replicate this type of success story, global mobility is only set to increase.

But as global mobility increases so too does the complexity of managing wealth. Globally mobile clients will look to their advisers to be able to seamlessly manage their cross-border wealth, regardless of where they look to base themselves. And as many of the residency by investment programmes have a time limit, moving to a third or fourth country over a ten-year period is becoming increasingly normal. Wealth solutions for truly globally mobile clients need to be able to facilitate this unprecedented level of cross-border movement.

Advisers will also have to be aware that the globally mobile HNW and UHNW client base they are serving is expanding. In 2018, $8.7 trillion of personal financial wealth was held cross-borders – roughly 4.2% of the global total. The fabric of modern-day wealth is evolving as the sources and destinations of this wealth are set to change significantly over the coming years. For example, Boston Consulting Group predicts that by 2023, the value of Asia’s cross-border wealth will have grown by 150%.

Wealth advisers will need to keep pace with this dramatic shift and cater for the changing needs of this growing client base. Driven by continuing economic and political uncertainty in the region, HNWIs and UHNWIs from emerging markets will increasingly seek asset safety, protecting against currency depreciation, and the desire to gain stable returns through international diversification. What these clients need are wealth structuring solutions that can manage cross border wealth spread across multiple developed markets. They will also need advisers who are able to navigate effectively around any regulatory or cultural differences between markets.

The mosaic that makes up the lives of modern wealthy people is constantly shifting and being redesigned as wealth is distributed across a more diverse range of ages, genders and nationalities than ever before. What drives wealthy people around the world has never been so complex. For wealth advisers, this means greater difficulties and greater opportunities. The wealth management industry needs to understand the changing landscape that faces HNWIs and UHNWIs and offer solutions that can help them to navigate the uncertainty and complexity.

When I speak to clients, what they are looking for is comfort that their adviser has expertise across multiple markets and jurisdictions. What they want is a feeling of control over their wealth and life’s legacy wherever they are, wherever they want to be, and regardless of what lies ahead.

For more information about Lombard International Assurance, visit our website.

houses
FundsPrivate BankingReal Estate

Two Thirds of Buyers are Struck With Anxiety Fighting the Challenges of Buying Their First Home

houses

Two Thirds of Buyers are Struck With Anxiety Fighting the Challenges of Buying Their First Home

 

This year, reports revealed that first-time buyers (FTBs) account for more than half (51%) of the nation’s buying market for the first time since 1995 and with the average deposit for a first-time home now sitting at £33,000, today new research has revealed that mortgages have as much impact mentally as they do financially on first-time buyers.

According to a survey of 2,000 FTBs currently in the market for a home, commissioned by online bank Atom bank, two thirds (64%) have admitted to feeling anxiety when tackling the challenges of getting a mortgage and purchasing their first home.

A lack of education around mortgages is playing a huge part in buyers’ anxiety. Of the 64% of buyers who have felt anxious whilst looking for a house, a massive three quarters (74%) attribute being unsatisfied with their knowledge of mortgages as a key factor.

The process has become so overwhelming for some, that over a third (37%) of buyers recently considering purchasing a new property have pulled out due to the stress of it all.

3 in 5 (58%) admit that a key contributing factor to their high stress levels is saving for a large enough deposit. Though the stress is not limited to those on a lower income, as almost half (47%) of households earning more than £80,000 a year have said they’re struggling to save for a deposit. This is in spite of the fact they’re earning nearly three times the national average wage (£29,009).

Mortgage Complexity and Mental Health

The research reveals the complexity of the current mortgage process is causing first-time buyers to doubt whether mortgage companies actually understand the challenges modern buyers face.

More than 7 in 10 people (72%) who are anxious about the challenges of purchasing a home don’t think that mortgage companies fully comprehend the challenges buyers face. The consensus is heightened by the fact that more than three quarters (78%) of the nation believe the mortgage process is too complex and needs to be more consumer-friendly. More than a third (37%) of buyers – from builders to barristers – with a postgraduate degree feel dissatisfied with the mortgage process and with 7 in 10 (70%) of Brits looking to move in to their new home this year still feeling anxious about the prospect, the mortgage process proves to be daunting from start to finish.

The challenge is too much for one person’s shoulders, as a fifth (21%) of buyers going through the mortgage process by themselves have had to pull out due to stress, compared to only 6% of those going through it with at least one other person. This still takes its toll on those in a relationship, as two thirds (65%) have claimed that although they haven’t pulled out of the market, the process has given them anxiety.

Spend or Save: Where does all the money go?

The turn of the 21st century has brought a new challenge for millennials trying to save for a deposit. The average person spends £1,740 a year on amenities such as streaming and on-demand services, phone bills and electronic devices. Modern technology has also made travelling much more accessible, with the average person spending £1,152 a year on trips. Combining the two means the average person spends £2,892 a year on both exploring and everyday tech, which is more than 1% of the average UK house price (£230,292).

In efforts to balance the books, nearly half (46%) of buyers would be willing to move back home with their parents to save money. Higher earners are the most likely to move back home, as nearly half (47%) of those earning over £34,000 would move home to save money for a deposit, compared to 2 in 5 (39%) people earning under £34,000.

However, those living by themselves (69%) and former university students (53%) are least likely to move home, despite 3 in 5 (60%) students claiming that saving for a deposit is their biggest obstacle, as well as paying off their university debt which is on average £50,800.

 But moving home is just the start for some, as 2 in 5 (38%) of buyers admit that their only way of saving a large enough deposit is through financial support from either a family member or partner. The reliance on family help grows with the buyer’s age; Generation X are twice (26%) as likely as millennials (13%) to ask for financial help when they’re trying to buy.

Despite a double income, two thirds (65%) of those in a relationship say that the biggest obstacle they face is saving for a deposit, compared to half (50%) of singletons. Having children stretches finances further, as 2 in 5 (38%) buyers rely on financial help from their family or partner, compared to 1 in 5 (22%) of those without children.

Stick or Twist: Flying the nest

Over a third (37%) of FTBs look to buy in the same area they grew up, with a quarter (25%) stating that they will look to buy somewhere that’s close to their friends. Traveling may give millennials the confidence to buy a new home in the unknown, as a quarter (25%) look to move away from the area they grew up in to experience some where new, while only 1 in 10 (10%) of generation X are willing to move away from their childhood area to try something new.

A key factor behind many buyers’ move is their job as a quarter (26%) look to buy a property closer to work. Many buyers looking to change jobs are caught in a predicament, as 2 in 5 (38%) look to buy somewhere that will give them better job opportunities, but nearly half (46%) are struggling to save the deposit they need to get in to those desired areas.

 

Education, Misconceptions and Help

Millennials believe knowledge is key, as 1 in 5 (19%) stated that a lack of education is the key reason behind the stress issues for first time buyers, whereas only 1 in 13 (8%) people from generation X believe a lack of education is to blame.

The process starts with confusion, as 43% of people found it complicated to choose a company or mortgage broker to get the ball rolling, while two thirds (63%) of buyers have stated that choosing a mortgage type is the most complicated part of the process.

Half (51%) of buyers who recently pulled out of the market explained that having their documents in order was the most stressful part of the process, with their little knowledge on key terms being a key issue.

The research has revealed the most common words in the mortgage process that buyers had either never heard of or didn’t understand are:

Highest percentage of words that were never heard of

Over half the nation (52%) wish they’d been taught more in school about the mortgage process. Worryingly, almost as many people would seek mortgage advice from a parent (55%) as they would a professional (57%), despite the abundant challenges new buyers face.

The lack of education on mortgages has left buyers unaware of multiple schemes that can help first-time buyers get on the property ladder. 4 out of 5 (83%) buyers with children have never heard of a ‘Family Offset Mortgage’, over a third (37%) have never heard of the ‘Right to Buy’ scheme and nearly 4 in 5 (78%) are unaware of the ‘Starter Home Initiative’.

Mark Mullen, CEO of Atom bank, said: “Today’s findings have showcased just how much impact the mortgage process can have on a first-time buyer, before they’ve even entered the market.

“Buying a home is commonly the largest investment most people will make in their life time, which is stressful enough without worrying about the mortgage process. This makes it vital that buyers feel at ease from as early on in the process as possible. The results show that there is a real disconnect between advisors and buyers, as many people are seeking advice from their parents, who may have not purchased a property in decades.”

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.”

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.”

Wealth Management Tech Firm WDX Reports 115% Revenue Growth
Private BankingWealth Management

Wealth Management Tech Firm WDX Reports 115% Revenue Growth

Increasing demand for regulatory compliance, digitisation and business insight within the UK’s wealth management sector has enabled WDX, the sector’s leading CRM software company and only dedicated Microsoft Gold Partner to announce 115% growth in revenues over the past 12 months to £5.4 million, with further significant growth envisaged in the next year. Announcing its listing as the 11th fastest growing start up company in the UK in the coveted Sunday Times’ Sage Start Up Track 15 and further client wins and project completions including most recently Brown Shipley, WDX has become the fastest growing technology provider in the UK wealth sector.

The wealth and investment management industry is finally coming to terms with the use of the web as an important client engagement tool and the need to ‘join’ digital interaction with the client engagement, client management and operational processes within firms. A recent study by Scorpio Partnership found that 63% of UK wealth clients would now consider leaving (their WM) if they cannot make investments directly and firms now understand that technology is the key enabler to remain relevant to this changing demographic.

WDX’s focus for 2016 is to continue to drive digital transformation and business change to the wealth sector and to provide exceptional client insight capability; providing a future-proof and best-of-breed CRM backbone to UK wealth firms.

Along side the exceptional technology and digital connectivity capabilities of its award-winning Microsoft Dynamics-based CRM platform, WDX is launching ‘WDX Insight’; a business intelligence module that will bring wealth firms unrivalled data mining and analytics capability to deliver fast and efficient client and intermediary insight, sales and marketing metrics and enable best-in-class performance across all areas of Client Suitability, KYC, sanctions checking, revenue generation and conduct risk mitigation.

WDX’s success over the past three years has been founded on the concept that a Customer Relationship Management framework, specifically tailored for the Wealth Management sector, can change the way an organisation acquires prospective clients through digital and traditional marketing engagement. It also allows forward thinking firms to transform the way they organise, manage and communicate with existing clients and intermediaries allowing innovation and new efficiencies in day-to-day activity while evidencing all aspects of client interaction and adherence to conduct of business guidelines.

WDX has continued to grow its team to over 40 staff and has office locations in Shoreditch London, Luxembourg and the Baltics. An office in Singapore is planned for 2016 to launch WDX in Asia and increased focus on the UK and more traditional European markets remains key for 2016. The existing UK and maturing regulatory frameworks in Europe and Asia will drive technology innovation and demand in the areas of conduct risk and client management.

Commenting on the firm’s success, Mr Gary Linieres, CEO, said: “For the first time in the 15 years I have been involved, the wealth management industry in the UK is genuinely going through a period of fundamental technological change. This is being driven by a vigorous and motivated regulator, a new generation of demanding clients, innovative competition and apprehensive boardroom directors, all of whom are demanding better insight, detailed data, modern tools and a general raising of standards in conduct, client management and new client acquisition.

“I find it amazing that many wealth management firms still have only scratched the surface of what is possible with modern CRM and Digital technologies. Many firms are facing a demographic time bomb within their ageing client bases and have no real strategy of how to modernise the engagement models and business processes required to meet the needs of a demanding new generation of wealth. Those that embrace change will not only improve their growth potential, they will be able to drive a cultural change in their organisations and gain real insight in to how well their business and people are performing.

“WDX’s growth over the past two years has been a reflection of the changing market and the development of a leading technology solution to help meet that change. However, what really pleases us is getting strategically important clients like Brown Shipley live and leveraging technology to evolve the way they operate and fundamentally change the culture of their organisations for the better.”

Rob Kitchen, Chief Operating Officer at leading UK Private Bank, Brown Shipley part of the KBL group, said, “We have been working hard with WDX over the past twelve months and are delivering a CRM solution that will build upon our reputation for exceptional customer service. This is a significant technological advancement for us and dramatically improves our ability to manage our internal client management, compliance and new client on-boarding activities efficiently.”

The WDX CRM solution is based on the very latest Microsoft Dynamics CRM platform and is specifically deployed to enhance digital marketing and communications, sales performance, client on-boarding, suitability, risk profiling, client management, client operations, business insight and the mobile experience of wealth managers.

Private BankingWealth Management

Keeping Your Finger on the Pulse of Your Finances

Rather than having to remember passwords, answers to secret questions and telephone length number combinations, bank account holders will instead be identified by their veins.

“It is in men as in soils where sometimes there is a vein of gold which the owner knows not”
– Jonathan Swift

The technology works with the use of an infra-red scanner. Portable and pluggable into any computer USB port, a customer simply places his or her finger inside the device with the unique patterns of their veins being read.

If the finger is approved, the customer will have access to their account within seconds.

The scanner will only be able to read the veins of a living finger, giving the technology a distinct advantage over fingerprint recognition and thwarting fraudsters much more effectively.

While it is the first time the technology has been on show in the UK, the new approach is successfully used in Japan and Poland. In both countries it is used on cash machines, (ATMs), with the customer not having to use a card or remember their personal identification number (PIN).

“Let me remind you that credit is the lifeblood of business, the lifeblood of prices and jobs”
– Herbert Hoover

Initially, Barclays will only offer the vein scanning service to its business customers, with companies registering to use the technology able to register several members of staff. Barclays says the system will allow one person to request the payment with another approving it.

Barclays has said that the expense of the technology in its present form is unlikely to appeal to retail banking customers immediately, but the head of personal and corporate banking for the bank, Ashok Vaswani, explained it was ideal for larger firms:

“For corporate clients who do a lot of large transactions, this makes a lot of sense,”

However, retail devices and use-at-home devices could not be far away, which would create a whole new trend of finger banking.

Queen’s Bank to be Sold
Private BankingWealth Management

Queen’s Bank to be Sold

Reports are suggesting that the sale could generate £600m ($1bn).

The bank, founded in the 18th century, is likely to see interest from bidders across the world. However, it is unclear whether the new Coutts International will be kept as one entity or split up. If it is split, one operation would be based in the UK, the other in Zurich, Switzerland.

The Zurich operation would manage around £20bn of assets, primarily in Asian and Middle-Eastern countries such as Hong Kong, Singapore and Dubai.

A memo issued to staff by RBS ahead of the public announcement said:

“We will… work with local management teams to explore options including merging the remainder of the current Coutts International business, considering joint ventures or a sale, thereby reducing RBS’s footprint internationally.

“There are no immediate changes for individuals in these businesses and it is important that we continue to work together to deliver for our customers.”

It will be a further watering down of the bank which saw its, African, Caribbean and Latin American private banking operations snapped up by the Royal Bank of Canada in 2012.

In its present form, Coutts International has a presence in seven countries employing around 1,200 members of staff.

Bitcoin to lead to "Tidal Wave" of Private Money
Private BankingWealth Management

Bitcoin to lead to “Tidal Wave” of Private Money

The innovation of non-conventional types of money – such as Bitcoin – has been fuelled by mounting restrictions on financial freedom. Constraints on commerce, the erosion of financial privacy and a wish for greater quality have been the driving forces in the emerging market for private money.

New Private Monies: A Bit-Part Player? by Kevin Dowd argues that states must allow a level playing field as far as private money is concerned. For too long the government has stifled competition between state-backed and private currencies. Instead, central banks should welcome competition as it forces them to offer consumers greater choice and improved quality.

A weakened ability to store value, growing restrictions on finance, oppressive taxes and a lack of financial privacy have resulted in growing frustration at state controlled money. The superior nature of private currencies combined with the financial freedom they offer has led to their increasing attraction.

Bitcoin enables its owners, among other things, to protect their wealth, make investments free from government control and retain a level of privacy, making it increasingly attractive. The price of Bitcoin rose from 3 cents in April 2010 when first traded, to over US$900 in January 2014.

The relationship between restrictions on individual freedom and demand for private money is also identified in the paper. The increasing constraints on personal freedom have led to private money becoming more and more popular as it enables people to do what would otherwise be illegal. The market for private monies will continue to thrive as long as states restrict and prohibit various forms of commerce.

Commenting on the report, Mark Littlewood, Director General at the Institute of Economic Affairs, said: “If government were to embrace private monies rather than suppress them, there would be profound implications for individual freedom. Bitcoin has proved widely successful as an alternative form of exchange and as way of restoring financial freedom. It is just the beginning however. Fierce demand for private money will drive innovation, creating a tidal wave of new and superior forms of exchange.”

Investor Confidence in UK Shares
Private BankingWealth Management

Investor Confidence in UK Shares

After a strong year for UK shares, the Lloyds Bank Private Banking Investor Sentiment Index survey shows private investor confidence in asset class is at its highest since the survey began
in March 2013.

According to the monthly survey, the net sentiment1 among surveyed investors has risen to  38 at the start of January, with over 47% of respondents holding a positive view just 9% holding a negative view, while 31% held a neutral view. This is in sharp contrast to March 2013, when the figure was just over 16, with nearly 34 per cent holding a positive view and over 17% negative, while 38% held a neutral view.

Despite periods of volatility, the FTSE 100 enjoyed a strong 2013, rising 14.4% in the best year for the index since 2009 when it made gains of 18.66%. Meanwhile, the FTSE 250 of smaller companies finished 2013 at an all-time high of 15,935.35.

The year 2013 saw a number of positive news stories about the UK economy including improved economic indicators and company earnings. Lloyds Bank Private Banking currently holds a positive view towards UK equities, with an overweight position in its client portfolios towards the
asset class.

In other global markets, private investors looked beyond market concerns towards US equities following the first round of the government’s reduction in quantitative easing. Net sentiment improved towards the US stock market between December and January rising nearly seven points to 7.

Investors surveyed also remain broadly negative towards Eurozone stock markets, with sentiment staying firmly in negative figures at -21. However, this is a substantial improvement on lows of -59 in April 2013. Japanese shares also reached their highest net sentiment in the survey’s history, climbing almost five points from the previous month to 13 in January 2014.

Lloyds Bank Private Banking maintains a neutral stance towards US equities, but sees value in the Eurozone and Japan, holding an equity overweight position in both these markets.

Commenting on the latest Investor Sentiment Index, Ashish Misra, Head of Investment Policy at Lloyds Bank Private Banking said: “It’s encouraging to see investors placing more faith in the UK stock market, and good news for British companies ahead of the first earnings season of 2014.

There has been a slew of positive economic data out of the UK throughout 2013, suggesting that the recovery is gaining momentum, and it’s likely that investors’ views towards the UK stock market are reflective of this.

“The increase in sentiment towards US equities was perhaps surprising given the QE taper that began just before Christmas, although US equities outperformed every other global equity market except Japan in 2013. We remain neutral towards the US and see the best opportunities for equity investors currently in the UK, Japan and the Eurozone.”

RiverPeak Wealth Appoints Marianne Hay
Private BankingWealth Management

RiverPeak Wealth Appoints Marianne Hay

Marianne Hay has joined the Advisory Board of RiverPeak Wealth, the newly launched wealth management firm.

Hay, who has headed global wealth and asset management groups including roles as CEO of Europe, Middle East and Africa Wealth Management at Morgan Stanley, Citi and Standard Chartered, will offer advice on the growth and development of the business.

Launched in December, RiverPeak Wealth provides portfolio management, investment analysis and financial planning advice.

Nick Parker, RiverPeak Managing Director, commented “We are delighted that Marianne is joining us in an advisory capacity. Her past experience and skills will prove invaluable to us, and our clients, as we grow the business.”.

Hay added “The wealth management market in the UK continues to be fragmented with no clear market leader. RDR has given RiverPeak Wealth an opportunity to develop new ways of providing wealth advice. I am looking forward to helping RiverPeak’s directors meet their ambitious goals over the months ahead.”

RiverPeak Wealth Expands Senior Team
Private BankingWealth Management

RiverPeak Wealth Expands Senior Team

James Powell, former director of private banking at Banque Havilland, is joining newly launched wealth management firm RiverPeak Wealth as Managing Director.

Launched in December, RiverPeak Wealth provides portfolio management, investment analysis and financial planning across London and the South East.

Powell, a private banking and financial planning veteran of 20 years, will be joining former colleague and founder Nick Parker at the helm of the business.

At Banque Havilland, Powell was responsible for establishing and growing the bank’s London branch. Previously, he was a wealth structuring specialist and then a private banker at Citi Private Bank.

Commenting on his new role, Powell said: “RiverPeak is filling the gap in the market for a wealth management and financial planning firm which goes beyond the usual product sell to provide a highly personalised private banking style service that is usually only experienced by the very wealthiest individuals and families. I’m excited about our offering plus the support and interest RiverPeak is already generating amongst UK financial influencers and business leaders, and importantly prospective clients. “