By Luuk Jacobs
By Eva Keogan
By Jonathan Max
By Luuk Jacobs
By Andy Milner
By Stuart Bull
FSTP have opened up a short survey for HR professionals working within the financial services industry.
Its aim is to get HR professionals thinking about topics such as utilising existing Apprenticeship Levy payments and the implementation of SM&CR.
Once we have collated and reviewed the data we will be sharing the findings. If you would like to be one of the first to see this short report, please complete the survey and enter your details. No responses will be linked to your details as all results will be aggregated.
We will share some of the key findings on here over the coming weeks to start some discussions, so watch this space.. Link to complete the short survey can be found below.
By Luuk Jacobs
We experience every day how the data we leave behind on social media are being used in positive and also negative ways. GDPR has tried already to create a level playing field as to how and what data can be used by giving consent through T&C's, etc.
However the use of data is more and more shaping the products and services that are offered to us, as well as the pricing. The increasing use of big data however risks some customers becoming unfairly excluded or priced out of vital markets. Where in the past the risks of for example insurance would be pooled and the cost shared by the pool, due to the use of data the risks on an individual level can be better analysed and accordingly premiums calculated.
The article looks also at the positive intervention that can be achieved like blocking gambling websites, disable the purchase of essays, etc. It equally however asks the question as to who owns the moral compass here and hence who decides on the purchase of services and goods.
I would agree that an ethical framework for big data use needs to be created so that companies can ensure that they have the skills and resources to be accountable – and customers need to think about their “data balances” as well as their cash balances.
We are at the big data frontier – we’re going to need some rules | City A.M.
WWW.CITYAM.COM We create data all the time, even if we don’t realise it.
Understanding your state of readiness for SMCR extension - City HR
CITY-HR.CO.UK Assessing your readiness for the SMCR extension Aimed at firms embarking on SMCR, or those in scope who would like latest thinking, this programme will: Provide an SMCR overview with expert insight direct...
By Luuk Jacobs
The FCA Asset Management Market Study (AMMS) was launched in November 2015 with findings reported in April 2018 (PS18/8). The implementation of AMMS by Authorised Fund Managers (AFM’s) is to be achieved by September 30, 2019. It includes ‘a package of remedies to ensure fund managers compete on the value they deliver, and act in the interests of the millions who entrust them with their savings’ according to the regulator.
For the industry, this creates a new menu of rules and guidance covered by this directive. Not only are they widespread, but they bring SMCR into play as well. Here are four key areas which need to be planned for and adequately accommodated:
a requirement for AFM’s to make an annual assessment of value (the “Value rule”), as part of their duty to act in the best interests of the investors in their funds a requirement for AFM’s to appoint a minimum of two independent directors to their boards the introduction of a new prescribed responsibility under the Senior Managers and Certification Regime (SMCR) to bring individual focus and accountability technical changes to (i) improve fairness around the way in which fund managers profit from investors buying and selling their funds and (ii) facilitate the movement of investors into cheaper share classes
The impact of the above might seem rather like MiFID; just another regulation to comply with but thought through in more detail, it will have a material impact on the industry. The implications will have an impact on executive levels including NEDs and here’s how:
The Chairman of the Board of the AFM (either executive or non executive ‘NED’) will become an SMCR position with the responsibility to ensure that the firm complies with its obligation to carry out the assessment of value, the duty to recruit independent directors, and the duty to act in the best interests of fund investors. This last element would, for example, include ensuring the appointed portfolio manager is the right one for the job. Currently these are usually longstanding appointments. This will add weight to the FCA’s requirements on assessing value for money and acting in the best interest of investors, and as a senior individual (the Chairman) will be held accountable.
The question then becomes how the Board and Chairman get the information based on which they can make this assessment. Up until now most AFM Board members are executives of the Management company, with arguably limited external perspective and challenge to how the fund is operated ie a very tunnelled and internal view. These executive Board members might have a perceived knowledge of their company.
A NED has the challenge to get independent understanding of the Asset Management Company and especially these days around the Risk and Control Management Framework, not just the fund strategy(ies), its performance and value for money. Hence which reports will the NED be provided with to ensure him/herself of the sustainability of performance and value for money?
The UK industry manages £7 trillion in assets and firms offering products with particularly poor value for money may struggle to justify their offering and be put under pressure to reduce fees, improve the quality of service, or move investors into better value share classes.
Equally, with no exemptions for the smaller players in the industry, this could even lead to closure of funds due to the additional cost for NED’s, providing of information and other associated admin. Over all, the industry will be a need to upgrade even further the Risk and Control Management Framework to ensure the Board’s working and for the Chairman to be able to sign off his/her SMCR duties.
Being a NED in this environment of changed responsibility, greater emphasis on further investor protection and likely still being surrounded by a majority of executive members on the Board, will be challenging.
Hopefully the new cooks in the kitchen will have the challenge to make existing cooks realise that the taste of the consumer has changed and therefore the meal needs to be cooked differently.
FCA Asset Management Market Study.pdf
The 4th Annual Private Wealth Switzerland Forum–Geneva brings together 75+ allocators of high-net-worth capital from Switzerland, including leading private banks, wealth managers and family offices. The event is a one-day networking and peer education platform. The meeting's program covers asset allocation, trust and estate planning, family governance, risk management and alternative asset classes.
ECONOMIC, POLITICAL & GLOBAL MARKETS OUTLOOK
Currently, we find ourselves in a positive domestic GDP environment, with optimistic corporate earnings growth, a strong dollar and a volatile stock market. What is to be expected in 2019 and beyond?
EMERGING AND OPPORTUNISTIC ALTERNATIVE INVESTING
Private Equity, Venture, Hedge Funds and other alternatives investments hold appeal for wealthy families. How are wealth managers viewing future allocations as valuations increase and dry powder sits on the sidelines?
FIXED INCOME INVESTMENTS
Global growth remains positive and central banks around the world continue to unwind what has been a very accommodative monetary policy. However, with volatility likely to stay high, investors must continue to do their homework.
EQUITIES AND THEIR IMPACT ON PORTFOLIOS
Huge opportunities remain available for investors considering (I would change “considering” to “making” predictions for 2019. Aside from energy, where are the biggest opportunities? Will ESG be affected as volatility cripples some specific industries?
REAL ASSET AND REAL ESTATE INVESTMENT STRATEGIES
With volatility expected to continue throughout 2019 in public markets, investors with appetite for less risk will be turning to real estate and other real assets investments. Still, finding the best opportunities will require great due diligence and patience.
With competition for clients and assets on the rise, wealth managers need to ensure that their asset allocation strategies address the balance between risk and opportunity. domestic GDP environment, with optimistic corporate earnings growth, a strong dollar and a volatile stock market. What is to be expected in 2019 and beyond?
4th Annual Private Wealth Switzerland Forum - Geneva | MarketsGroup
WWW.MARKETSGROUP.ORG Continuing the success of our multi-asset class Annual Tri-State Institutional Investor Forum, the US Markets Center for Investor Education is pleased to introduce a specialized one-day meeting...