Intl Adviser January

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Intl Adviser January

  1. 1. JANUARY 2012For Distributors of International Fund, Life and Banking Products www.international-adviser.comNEWSAxa Group sells HongKong-based Ipac 5 Court rules against DGT HK insurance brokers disputeRL360˚ relaunchesits Quantum offeringSturgeon targets 5 beneficiaries’ IHT claim ‘bribery’ rules BY HELEN BURGGRAFCentral Asian equities 5 BY SIMON DANAHER aged 91. The trust, which would be attainable on the it had been anticipated open market, as is required Hong Kong insurance bro-France goes after trusts The beneficiaries of a would be a potentially for the trust to work. kers are expressing frustra-with ‘mini-FATCA’ 7 Royal Skandia discounted exempt transfer, became A spokesperson for tion over a requirement thatSpectrum IFA opens gift trust (DGT), which was chargeable. Skandia International said they inform clients when-new office in Italy 7 sold by an IFA to a client The latest ruling was the company was not ever they are to receive one year and three months made after an appeal by involved in the sale of the commission from the saleProviders react to HMRC’s before her death, have lost the two sons over an product as it does not pro- of insurance products, evenQROPS reforms 7 a court battle over whether earlier court case, which vide advice to clients. though their rivals in theSwiss Life withdraws the money is eligible for found that HM Revenue Rachael Griffin, head marketplace – insurancefrom int’l retail market 8 inheritance tax (IHT). & Customs was right to of product law at Skandia agents – do not have to. On 21 Dec, 2004, Kath- charge IHT on the assets said: “DGTs can play an This transparency requi-Hartnett due to retire from leen Watkins, then aged held in the trust. important role in a well rement is not new, havingHMRC this summer 8 89 years and nine months, The main reason the considered IHT planning its origins in a 1997 lawInt’l money laundering was advised to invest her trust was eligible for IHT strategy. The actual dis- known as the Preventiongang is jailed 10 money in a DGT for the was because the court count applied is a matter of Bribery Ordinance. But benefit of her sons, David decided that it could not be to be agreed by HMRC and pressure to abide by itInvestec expands its and Keith Watkins. proven, and was therefore the executors of the estate has increased, in part as aLuxembourg range 13 A little over a year later, unlikely, that a life policy in question.” result of a recent voluntaryDeutsche names Masud Kathleen Watkins died, against Kathleen Watkins Continued on page 5 industry agreement pro-as UAE chief officer 14 moted by what some bro- kers argue was a relativelyJulius Baer enters Chinesemarket with new office 17 Smith leaves FPI for Standard Life role small number of insurers. The result, claim the bro-Standard Bank names Trevor Smith has left brief will include further kers, is that they are beingde Klerk as int’l head 17 Friends Provident Inter- developing the company’s burdened with a competi- national’s Hong Kong Hong Kong business and tive disadvantage relativeThreadneedle rolls out office, where he was Hong strengthening its team, to the insurance companies’Lux-domiciled UK fund 18 Kong sales director, to join while working to develop tied agents, since theseHSBC Global AM opens Standard Life (Asia) as new markets in the region, operate under a differentfrontier fund to retail 18 chief distribution officer. the company said. business model that lacks At Standard Life he suc- Smith, who is from the a commission element –Old Mutual sells Nordic ceeds Roy Halliday, who UK, came to Hong Kong because they are consid-Skandia operations 21 was named chief executive ten years ago, after 16 years ered agents of the insur- officer last year, leaving with Clerical Medical’s City ance companies whoseAviva closes to business Smith: ‘Hong Kong position’ a vacancy that was left of London operation. products they represent.in the Middle East 21 unfilled until now. Standard Life and FPI At the same time, thereSingapore raises stamp In his new role, Smith end of December, his suc- both have estimated market are concerns among someduty for foreigners 52 reports to Halliday, and cessor at Friends Provident shares in Hong Kong’s in Hong Kong’s insurance will be based in the com- International (FPI) had not investment-linked insur- brokerage community that Features – page 4 pany’s Time Square offices yet been named. ance market of around this newly-emphasised in Causeway Bay. At the At Standard Life, Smith’s 5% each. Continued on page 7MD profile 22-23 Regional profile 24-26 Intermediary profile 30-31John Van Der South America As London & CapitalWielen The newly Brazil’s economy The companyappointed head of develops, financial explains how itthe international services providers focuses on clientsoperation at Friends are taking a closer interested inLife discusses his look at the rest staying rich ratherbusiness objectives of South America than getting rich
  2. 2. Move it guys. I got fifty thousand here chewing scarves. Focused on the same goal.+44 (0)20 7818 4411 www.henderson.comThe value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund ManagementLimited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative InvestmentAdvisor Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no. 2606646), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate,
  3. 3. A special manager like José knows that he’s there to give while being alive to potential risks. We sign new investmentthe fans the results they demand. Henderson’s investors, talent when it’s needed and make sure they have all the latestquite rightly, are equally demanding. This is why we use investment kit. Like José, we recognise the responsibilityteams of experts who are passionate about what they do. that our clients have entrusted to us. And that feels like aWe encourage them to have confidence in their abilities special privilege. The other special managerLondon EC2M 3AE), Gartmore Investment Limited (reg. no. 1508030), Gartmore Fund Managers Limited (reg. no. 1137353), (each incorporated and registered in England and Wales withregistered office 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Services Authority to provide investment products and services. Telephone calls maybe recorded and monitored. HGI43785/1211
  4. 4. contents PROFILES FEATURES TECHNICAL PORTFOLIOMD profile: John Van Regional profile: Briefing: Retirement Fund selector:Der Wielen 22-23 South America 24-26 income 34-35 Global emergingHaving joined Friends Life Few investors saw the potential As life expectancies rise and market debt 37-39as managing director of its of South America ten years birth rates fall, corporate and Investors were last year remindedinternational businesses in ago, but the continent has state pension systems around the about the volatility that emergingNovember last year, John Van Der grown in terms of its economic world are coming under pressure. market debt strategies can suffer.Wielen describes his background importance and is proving more Individuals should therefore not Emma O’Neill at OBSR examinesand what attracted him to the role. attractive to financial services rely on traditional schemes to the asset class in detailHe also sets out his plans for the providers. Helen Burggraf fund their retirement, arguesfuture, which include a whirlwind examines the rise of the region Luanne Ahearne, a technicaltour of the company’s offices and the challenges it poses to STATISTICS the IFAs who work there consultant at Royal Londonand distributors, and a reviewto ensure that its structure and Gulf Expert Investor 360˚. Instead, investors should The IA Quality Funds consider such products asstrategy are compatible Intermediary profile: 40-45 Forum 32-33 offshore regular premium savings London & Capital policies, which aim to generate A list of the blue chips More than 180 delegates of the offshore fund world 30-31 attended the International Adviser capital growth over the medium With an approach that focuses on Gulf Expert Investor Forum, to long term, and offer a range of wealth preservation rather than which took place in Dubai at asset classes, risk profiles, and Banking deposits 46 accumulation, London & Capital the end of November. Attendees currency denominations The top-paying offshore accounts has built a high net worth client heard speeches from a range of base, with $3bn in assets under experts from around the world, CLASSIFIEDS advice. The company plans to and participated in breakout target new segments, including seminars, one-on-one question Life listings 47-48 Recruitment 50-51 divorcees and beneficiaries of and answer sessions, and Find the job that suits you in IFA personal injury claims roundtable discussions Service listings 49 firms operating around the globeIA Intermediary Panel IA Tax Panel Graham Barnes Tony Shah Paul Stanfield Margaret Jago Rachael Griffin Director, Associate director, Chief executive, International Head of product international Christchurch FEIFA technical law and financial division, Investment Mgt, manager, planning, Skandia The Fry Group, UK UK Aegon Ireland International Glen Cochrane Tim Searle Sean Kelleher Gerry Brown Mark Green Investment Chairman, Chairman, Head of trusts Head of estate director, Globaleye, Dubai Financial Partners and taxation, and tax planning, Creechurch Group, Dubai Prudential Legal & General Capital, IoM International David Bellingham Gary Boal Robert Parker Brendan Harper Julie Hutchison CEO, Professional Managing Chief executive, Technical Head of Investment director, Holborn Assets, services international Advisory Services, Boal & Co, Dubai manager, FPI technical insight, Singapore Isle of Man Standard Life Int’l Mark Rawson Rex Cowley Mahmoud Brian Murphy Neil Chadwick Business director, Principal, Nodjoumi Senior financial Technical The Henley Group, Newdawn Chairman and planning manager, Royal Hong Kong Consultancy & chief exec, Nexus manager, London 360º Research, Jersey Group, Dubai Axa Sun Life Ernest Chan Sam Instone Mike Coady Paul Kennedy Sandra Hogg Chief commercial Director, AES Director, deVere Business Senior tax officer, Convoy International, UK Group, Western development manager, Scottish Financial Services, Europe director, Widows Hong Kong FundsNetwork Bill Blevins Sarah Lord Rainbow Pan Chris Allatt Anthony Rothwell Managing Wealth planning CEO, ipac, Hong Senior tax Technical director, Blevins director, Killik Kong consultant, consultant, Franks, & Co, Middle Sanlam UK Canada Life pan-Europe East & Asia International 4 INTERNATIONAL ADVISER [www.international-adviser.com] JANUARY 2012
  5. 5. NEWS NEWSSturgeon plansUcits fund to Axa Group sells Hong Kong- IN BRIEFtarget Central based Ipac advisory firm Court rules against DGT beneficiariesAsian equities BY HELEN BURGGRAF Kong’s regulator. tions, the firm has not been Continued from page 1 “The illustrations thatHedge fund manager It had also sought per- profitable in recent years. we provide are basedSturgeon Capital plans to Axa Group plans to sell mission from the regula- News of Axa’s inten- on HMRC agreedlaunch a Ucits-compliant those parts of its Hong tor in Singapore, where tions to shed the remainder principles so will beCentral Asia Equities Fund, Kong-based Ipac advisory Ipac also has offices, the of Ipac follows reports that a good guide. Even ifoffering investors expo- company that it did not dis- sources said. it is also looking to sell no discount is agreedsure to such markets as pose of last year, as it seeks Ipac chief executive, most of its London-based by HMRC, DGTs stillKazakhstan, Turkmenistan to end a nine-year affilia- Rainbow Pan, declined to Bluefin advisory business. offer value in termsand Georgia. tion with the self-described confirm that Ipac was on The firm continues to of ensuring future The Luxembourg- “holistic lifestyle financial the block, saying it was keep a foothold in the investment growth isdomiciled fund, Sturgeon’s planner”, sources in Hong company policy not to Hong Kong market with outside of the estatefirst foray into the retail Kong and Singapore say. comment on “speculation Integrity Financial Advice for IHT purposes, andmarket, is designed to tap As International Adviser [and] rumours”. Axa Group Network, which it estab- that the potentiallyinto Central Asian growth, went to press, Axa was also did not respond to lished in 2010. Integrity, a exempt transfer ruleswhich has been boosted said by these sources to be requests for comment. platform business, is aimed are utilised. Financialby demand from China in the final stages of a sale According to those at financial services profes- advisers are welland India for its natural agreement with an undis- familiar with Ipac, which sionals who cater mainly placed to determineresources. closed Australian com- specialises in providing for local clients. whether a DGT is an Sturgeon, which runs a pany, and understood to high-end, fee-based advice For a profile of Ipac, see appropriate product for$30m multi-strategy Central have obtained permission to wealthy expats and local page 23 of the September someone’s individualAsia hedge fund, says the for the deal from Hong residents in all its jurisdic- 2011 issue of IA. needs,” Griffin added.Ucits portfolio will have RL360˚ relaunches its Quantum offering25 to 35 holdings. The Generali appointsfund will be “long-biased”but will also be able to James Westontake short positions in BY WILL JACKSON funds; and additional cur- Guernsey-based lifecommodities and indices, rency variants to limit cur- insurer Generaliby using exchange traded Royal London 360° has rency exchange fluctuation. International hasfunds and derivatives. revamped Quantum, its “I expect the new fea- hired James Weston, Towards the end of international regular sav- tures, especially the 100% the former head ofDecember, the largest ings product, and launched allocation for all regu- strategic partners atweighting in a mock- a ‘superhero’ advertising lar premiums, to attract Skandia International,up portfolio was to campaign to raise aware- an even broader range of for its newly-createdKazakhstan, the ninth-larg- ness of the changes. investors at the lower pre- head of bank distrib-est country in the world Several new features mium level,” said Natalie ution role. Weston’sby land mass and the big- have been added to Hall, the director of market- appointment is in linegest exporter of uranium. Quantum: 100% allocation Hall: ‘investor range broadened’ ing at Royal London 360°. with the company’sOther exposures included for all regular premiums; Quantum is available to ambition to expand itsTurkmenistan, Tajikistan, Australian dollars as a The company has also single and joint life inves- distribution model.Georgia, Mongolia, Turkey policy currency; premium introduced an enhanced tors in the internationaland Russia. incentives for qualifying fund range, which includes: markets in which Royal UK Treasury delays According to Sturgeon, top-ups; and revised policy Australian dollar funds to London 360° operates – residency test draftnamed after the caviar-bear- exchange rates to reflect complement the new policy excluding the UK, Hong The UK Treasurying fish found in Central market conditions. currency; extra Islamic Kong and Lebanon. has postponed theAsia, the fund will take publication of draftadvantage of “under-devel- legislation that wouldoped and fundamentallyinexpensive” markets in the ESCA tipped to be ‘wholesale regulator’ for UAE have established a statutory residencyregion. It will be managed The Emirates Securities The regulation of finan- ESCA will become the main test. The legislationby Clemente Cappello, the & Commodities Authority cial institutions in the regulator of asset man- had been due to becompany’s founder. (ESCA) is likely to become UAE is currently shared agement activities in the published in the draft The fund, which is the “wholesale regulator” between the UAE Central UAE, and is consulting on Finance Act 2012expected to be unveiled in the UAE, regulating life Bank, with which most new rules that are expect- last month, but theearly in the second quar- companies to IFAs, accord- asset management com- ed to be implemented in Treasury announced itter of 2012, will have an ing to HSBC’s Daniel Rudd. panies are registered; the 2012. would delay the draftannual management fee of Rudd, the bank’s head Insurance Authority, with Early drafts of the rules legislation until the2%, and a 20% perform- of wholesale distribution which most international proved controversial – in Finance Act 2013.ance fee. To protect per- for the MENA region, said life companies and IFAs particular a suggestionformance, Sturgeon plans it is only a matter of time are registered; and the that life companies may For the current and allto close the portfolio to before ESCA, which was Dubai Financial Services be responsible for register- previous editions, withnew money, if and when created in 2000, takes Authority, which regulates ing new funds with ESCA, full news archive, go toits assets reach approxi- charge of all aspects of activities in the DIFC. rather than this duty lying www.international-adviser.commately $300m. financial regulation. It is understood that with asset managers.JANUARY 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 5
  6. 6. T R U S T E D H E R I T A G E A D V A N C E D T H I N K I N G Built for success “Intelligent portfolio construction is at the heart of the QEP Investment Team’s approach. With foundations laid in Value and Quality, we analyse the DNA of over 15,000 companies from around the world to build exceptionally well-diversified portfolios, invested across over 500 stocks. The result? Maximised global opportunity, minimised stock-specific risk.” Justin Abercrombie, Head of Schroders’ QEP Investment Team since 1996 – A proven track record across a range of global strategies including Value, Quality and Core – An experienced team of 23 investment professionals based in London and Sydney* – Over EUR 15 billion** under management for a global client base. Built for success. Built for you. Find out more about Schroders’ QEP Investment Team at www.schroders.com/qepglobal Schroders’ QEP Investment Team www.schroders.com/qepglobalFor professional investors or advisers only. *Source for team: Schroders as at 31 October 2011. **Source: Schroders as at September 2011. Past performance is not a reliable indicatorof future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued in November 2011 by SchroderInvestment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 1893220 England. Authorised and regulated by the Financial Services Authority. w40852
  7. 7. NEWS NEWSProviders reactto HMRC’s Talk of ‘French mini-FATCA’ IN BRIEFcontroversial as France goes after trusts HK insurance brokers dispute sales ruleQROPS reforms BY HELEN BURGGRAF their trustees to report to manager of Prudential, Continued from page 1 French tax inspectors on could be seen as a pos- commission disclosureThe QROPS industry Tax specialists who have the trust’s French assets, sible “thin end of a FATCA requirement couldhas until the end of this studied France’s new tax their French beneficiaries, wedge”. saddle them with amonth to respond to a regime for wealthy individ- and/or French settlors. Meanwhile, France significant potentialconsultation on contro- uals are likening its treat- Reporting is also is seeking to borrow yet historical liability,versial changes to legis- ment of trusts to elements required even if all the another page from the US’s were they to belation announced by HM of the much-bemoaned parties to the trust reside FATCA book, with plans to accused by a clientRevenue & Customs at the US Foreign Account Tax outside of France, if the extend the scope of back of failing to obtainstart of December 2011. Compliance Act (FATCA) trust holds French assets, assessments on undeclared consent to receive the Unanticipated by the regulations. such as loans, real estate, foreign assets. commissions that wereindustry, the reforms were Just as the FATCA stocks and shares. Just as the US has taken subsequently paid.published as part of the obliges non-US financial Virginie Deflassieux, to enforcing long-existing “What we want toUK’s Autumn Statement institutions to furnish the associate director of rules requiring its citizens know is, where the heckalongside the Finance Bill Internal Revenue Service French tax at PKF (Channel to report on all of their for- is transparency for the2012, and were mainly tar- with details concern- Islands), said last month eign bank accounts, France agents as well [as thegeted at preventing pen- ing assets held in over- that she and her colleagues is proposing to extend to brokers] in all of this?”sioners from using QROPS seas accounts by US cit- had been “sifting through ten years, from the current said Glenn Turner, ato move their pensions out- izens, they say, the Loi client portfolios” to identify three, the period of time Hong Kong adviser whoside of the UK, in order to de Finances Rectificative trusts affected by the rules. undeclared foreign assets is also chairman of thetake a tax-free lump sum. pour 2011 contains meas- The new law, added may be assessed for back Independent Financial However, as well as ures that oblige trusts and Gerry Brown, technical tax and penalties. Advisors Association.including clauses aimed atpreventing this, particularlyin New Zealand where thepractice has been wide- Spectrum IFA targets the Italian market Caruana ends tenure as Gibraltar ministerspread, HMRC introduced The Spectrum IFA Group employs 44 advisers, and Voters in the Britishclauses which could, if has opened an office in the plan in Italy is to “build overseas territory ofenacted as they stand, be Rome to cater for the 28,000 a team” around Horsfall, Gibraltar have replaceddetrimental to other “third British nationals that the according to Michael their chief minister ofcountry” jurisdictions. Foreign & Commonwealth Lodhi, chairman and co- the past 15 years, Peter The main concern is Office estimates live in Italy. founder of the company. Caruana, with Socialistaround Condition 4, which Heading the office Horsfall notes that Italy Labour Party member,stipulates that a QROPS is Gareth Horsfall, a has proved a challenging Fabian Picardo.must be taxed at the UK-qualified finan- market for UK financial Observers said thedomestic rate of tax of the cial planner who has advisers, because Britons vote was more aboutjurisdiction in which it is lived in the city for the in Italy tend to be scattered a desire for a changebased, or that residents of past seven years. Most Horsfall: ‘building a team’ thinly across the country. in leadership style thanthat jurisdiction are treated recently he looked after “There are a few hot political philosophy.in the same way as mem- Britons living in Italy for to six the number of coun- spots, such as Rome andbers of the QROPS for tax AES International, the tries in which Spectrum Milan, but even in these Facebook adviserpurposes. London-based IFA net- has a presence, after places, the expat popula- fined HK$20,000 Many in the QROPS work, which no longer has France, Spain, Switzerland, tion has been hit quite An unlicensed adviserindustry welcomed the an office there. Luxembourg and the hard by the economy,” in Hong Kong wasnew legislation, saying it The Rome office brings Netherlands. The company Horsfall said. fined HK$20,000was time HMRC moved to ($2,600) last month,stop potentially illegal prac-tices. But an online poll Ignis rolls out its Absolute Return Bond in Europe and given a community service order of 80conducted by International hours for advising onAdviser revealed that 76% BY SIMON DANAHER of €115m ($150m) and by invests primarily in govern- securities via the socialof readers believed HMRC 19 Dec had returned 5.7% ment bonds, but also takes networking websitehad gone too far with its Ignis Asset Management from launch, according to long and short positions in Facebook. Accordingproposals. is registering its Absolute FE Analytics. money market instruments to Hong Kong’s Rex Cowley, a former Return Government Bond The UK-based asset and derivatives. Foreign Securities and Futureshead of marketing and Fund for sale across manager said that, as well currency exposure is lim- Commission, Lo KamQROPS specialist at Europe – starting with as Spain, it plans to reg- ited to 25%. Chung gave adviceClose, and now of New Spain, where the fund was ister the fund for sale in “We know Spanish between April andDawn Consultancy, said: registered last month. Italy, Austria, Germany, investors are frustrated November 2010.“Providers and advis- The fund, a Luxembourg- Switzerland and France by the poor performanceers need to stay close domiciled Ucits III compli- during 2012. of absolute return funds For the current and allto this process over the ant Sicav, was launched in Managed by the com- in general,” said Mauro previous editions, withcoming months, so they the UK on 13 March, 2011. pany’s head of rates, Russ Loran, regional director, full news archive, go toare best placed to advise By 13 Dec, 2011, it had Oxley, and chief economist Iberia and Latin America, www.international-adviser.comtheir clients.” assets under management Stuart Thomson, the fund at Ignis.JANUARY 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 7
  8. 8. NEWSCanaccord buysCollins Stewart Swiss Life calls time on its FSA bans UBS adviser, issuesHawkpointBY GARY CORCORAN foray into int’l retail market £150,000 fine BY ESTHER ARMSTRONG BY SIMON DANAHER to develop its internation- high net worth segments.Collins Stewart Hawkpoint al retail proposition. It is “As a consequence, and The UK Financial Serviceswill be acquired by Swiss Life will completely understood that the offer- with immediate effect, Swiss Authority (FSA) has bannedCanadian brokerage firm withdraw from the interna- ing was likely to include Life Products (Luxembourg) and fined a former clientCanaccord, in a deal tional retail market, in order investment products within will no longer accept any adviser at UBS £150,000expected to be worth to “refocus on the corpo- an insurance “wrapper”. business under the ‘free- ($230,000), for breaching its£250m ($390m). rate and high net worth However, one year later, dom to provide services’ code of conduct and failing Canaccord, which wants segments” of its business. Sabugueiro left Swiss Life. regime. This includes all to act with integrity.to expand its UK brokerage The company has ter- The company cited “differ- the ‘affluent’ solutions that Jaspreet Singh Ahuja,and wealth management minated relationships with ences regarding the strate- were offered directly from who worked within UBS’sbusiness, had reportedly several international IFAs gic direction of the project”, Luxembourg. Business sold London wealth manage-been in talks with Collins through which it had dis- and said it would continue via our branches in existing ment business, is now pro-Stewart since September. tribution agreements. to develop the proposition. Swiss Life markets will not hibited from performing Under the terms of the Swiss Life’s foray into In a letter terminating its be affected.” any function in relation toagreement, shareholders in the international retail relationship with one inter- A spokesperson for a regulated activity in theCollins Stewart will receive space was short lived, with national IFA group, Swiss Swiss Life confirmed the financial services industry.96 pence per share, which the project encountering Life said: “We would like to company’s withdrawal During the periodincludes 57.6 pence in cash difficulties early on. inform you that the board from the international between 1 Jan, 2006 and 30and 0.072607 of a share in In January 2010, it of directors of Swiss Life retail sector, and said there Jan, 2008, Ahuja used a pre-Toronto-based Canaccord. appointed industry veteran Group has decided to refo- had been a “few unavoid- existing investment struc- The deal was the third Carlos Sabugueiro from cus its international divi- able job redundancies” ture to enable an Indianacquisition by Canaccord Zurich International Life, sion on the corporate and as a result. resident customer, via anin 2011, following its take- investment fund incorporat-over of The Balloch Group ed in Mauritius, to breachin China in January, and itspurchase of a 50% share in Hartnett due for retirement from HMRC Indian law. The client invested overBGF Capital Group. BY HELEN BURGGRAF alties owed in connection $250m in the fund. Under In 2010, it built on its with an offshore company Indian law, investors areinvestment banking busi- Dave Hartnett, the HM the bank was using. not permitted to invest inness with a £180m cash Revenue & Customs Others, though, praised Indian securities throughand stock takeover of (HMRC) official who was Hartnett, a former tax “Foreign InstitutionalGenuity Capital Markets. criticised by some politi- inspector, for the inno- Investor” vehicles, except Collins Stewart has cians for his role in giving vation and openness he in particular circumstances.850 UK staff, and a large Goldman Sachs a break brought to HMRC. Several Following his wrong-presence in the Channel on tax monies owed, will tax amnesty schemes and doing, Ahuja took steps toIslands, Singapore and retire this summer. anti-tax evasion campaigns, conceal the true nature ofthe US. The departure of including the Liechtenstein the investment, by giving Tim Ingram, chairman Hartnett, who turns 61 Hartnett: ‘tax break criticism’ Disclosure Facility, were misleading information toof Collins Stewart, noted next month, was revealed implemented while he was the UBS compliance depart-that the combination of the in an announcement of ing Hartnett’s successor. in charge, they noted. ment, among others. Finallytwo firms would strength- the appointment of Lin Hartnett’s retirement Homer qualified as Ahuja assisted in makingen the enlarged group’s Homer as HMRC’s new had been expected, since a lawyer in 1980 and unauthorised redemptioncapital markets, advisory chief executive. the normal age of retire- began her career with payments out of the fund,and wealth management Homer, permanent sec- ment is 60. Nevertheless, Hertfordshire County knowing the redemptionspresence in North America, retary at the Department some observers suggested Council, where she were not properly author-Europe and Asia. for Transport, will take his departure had been stayed for 15 years, rising ised by the customer. Paul Reynolds, chief over from Lesley Strathie, hastened by publicity sur- to director of corporate Tracey McDermott, theexecutive of Canaccord, who was forced to step rounding the Goldman services. She worked her FSA’s acting director ofadded: “When the trans- down in November owing Sachs matter, which way through several gov- enforcement and financialaction closes, Canaccord to illness. She takes up the involved HMRC giving the ernment posts until she crime, said: “This behaviourwill have operations in 12 post this month, and will bank a £10m ($16m) break, reached the transport has no place in the financialcountries.” be responsible for choos- evidently in error, on pen- department in 2010. services industry.” Dylan Emery Editorial director Giles Whittingham Sales executive Keeley Parsons Circulation manager SUBSCRIPTIONS T +44 (0)20 7065 7565 T +44 (0)20 7065 7579 T +44 (0)20 7065 7578 subscriptions@lastwordmedia.com or go to www.international-adviser.com E dylan.emery@lastwordmedia.com E giles.whittingham@lastwordmedia.com E keeley.parsons@lastwordmedia.com PUBLISHERWill Jackson Editor Stephen Grasso Head of production Mark Jennings Head of online Tom Porter Managing director (Asia) Last Word Media (UK) Ltd, 4th Floor,T +44 (0)20 7065 7567 T +44 (0)20 7065 7571 T +44 (0)20 7065 7562 T +65 9781 3401 120 Moorgate, London EC2M 6UR, UKE will.jackson@lastwordmedia.com E stephen.grasso@lastwordmedia.com E mark.jennings@lastwordmedia.com E tom.porter@lastwordmedia.com Last Word Media (Asia) Pte LtdHelen Burggraf Deputy editor Emily Proctor Head of event operations Level 25, North Tower, One Raffles Quay Dean Andrews Production editor Jamie Hinchliffe Publishing director Singapore 048583T +44 (0)20 7065 7568 T +44 (0)20 7065 7570 T +44 (0)20 7065 7561 T +44 (0)20 7065 7572E helen.burggraf@lastwordmedia.com E dean.andrews@lastwordmedia.com E emily.proctor@lastwordmedia.com E jamie.hinchliffe@lastwordmedia.com PRINTING Ian Allan Printing Ltd, Hersham,Simon Danaher Online news editor Ben Wiseman Associate publisher Victoria Parker Senior event coordinator Rod Boulogne Managing director Surrey KT12 4RG; Tel +44 (0)1932 266600T +44 (0)20 7065 7577 T +44 (0)20 7065 7573 T +44 (0)20 7065 7564 T +44 (0)20 7065 7560E simon.danaher@lastwordmedia.com E ben.wiseman@lastwordmedia.com E vicky.parker@lastwordmedia.com E rod.boulogne@lastwordmedia.com 10,097 July ’10 – June ’11 8 INTERNATIONAL ADVISER [www.international-adviser.com] JANUARY 2012
  9. 9. » » » » » » »Financial Strength Rating A M BEST B++ Good
  10. 10. NEWS Int’l money laundering gang Anti-tax haven campaign is is jailed after investigation launched by BY RAY CLANCY cial investigation by the laundering group headed UK-based TJN UK-based Serious by Herbert Austin to try to BY HELEN BURGGRAF Four men who created a Organised Crime Agency obscure the money trail.Van Der Wielen: ‘exciting deal’ tangled web of financial (SOCA) unpicked the com- Austin and co-conspira- Tax Justice Network (TJN), transactions across the plex trail and found that tors Raymond Jewitt and a UK-based anti-tax haven globe, in an attempt to the money was originally Anthony Heald created an organisation, has started aFriends unveils launder $15.5m stolen 11 stolen by Matthew Holmes international system to campaign to call attention years ago from a German and Donald Somers, who receive and wash the to the impact low- andTakaful offering bank, have been jailed. The criminal gang used worked for Commerzbank in Germany. stolen money, which was eventually transferred to no-tax jurisdictions have on people in higher-taxin Malaysia for offshore companies con- trolled by trusted associates Both men were convict- ed in Germany but the accounts of Equity Holdings and Investments, countries. The European NetworkMuslim clients and offshore banks, in jurisdictions including the money could not initially be traced. and Westfield Corporation in the UK. on Debt and Development (Eurodad) said TJNFriends Life has launched a Channel Islands and Cyprus SOCA investigators dis- Austin was jailed for launched the campaign,Shariah-compliant insur- to try to hide the trail, covered that another eight years, Greest for two Tackle Tax Havens, toance business in Malaysia, before transferring the employee of the bank, years, and Heald and Jewitt “highlight the critical rolethree years after it acquired money to the UK. Leigh Greest, had enlisted a for three and five years that [tax havens] play ina 30% stake in AmLife, a But an extensive finan- specialist criminal money respectively. corrupting the globalmajor Malaysian insurer. economy”. An announcement tothe London Stock Exchange BNP names Merlo and Lecomte to run wealth management arm Eurodad cited research from TJN that it said showslast month marked the BNP Paribas Group has gic business, drawing on tax evasion “costs 145signing of a shareholder appointed Vincent Lecomte BNP Paribas Group’s broad countries, representing overagreement by Friends Life and Sofia Merlo as co- range of advisory and 98% of world GDP, morewith AMAB, a wholly- heads of its wealth man- management expertise,” than $3.1trn annually”.owned subsidiary of agement business. said d’Estais. “In the UK… a stagger-AmBank Group. They report to both Merlo began working at ing £69.9bn a year is lost to The deal established Jacques d’Estais, deputy Paribas in 1985 and held a tax evasion in the ‘shadowAmFamily Takaful Berhad, chief operating officer of number of key roles, economy’ – that is, 56% ofwhich will manufacture BNP Paribas Group and including sales director for the country’s total health-and sell Shariah-compliant head of the investment wealth management in care spend,” it added.family Takaful business, solutions division, BNP France. Lecomte held sev- According to TJN, threesubject to final approval Paribas Personal Finance Merlo: ‘strategic development’ eral positions in the con- conditions must be met infrom the Malaysian and International Retail sulting field before joining order to resolve the prob-regulator. Banking; and François an important business, Paribas’ Securities Services lem of tax havens. First, all Initial paid-up capital of Villeroy de Galhau, the serving both our domestic business in France, and jurisdictions considered toAmFamily Takaful will be chief operating officer of and international clients. I became chief operating be tax havens must putRM100m ($31m), of which BNP Paribas Group and have every confidence that officer at BNP Paribas details of the ownership ofFriends Life is contributing head of domestic markets. Sofia and Vincent will con- Wealth Management in all companies and trustsRM30m and AmBank the “Wealth Management is tinue to develop this strate- September 2010. located in them, and theremaining RM70m. The accounts of those organisa-chief executive of tions, on public record.AmFamily Takaful is WanZamri Bin Wan Zain. Qatar and UAE remain frontier markets Second, all multination- al companies should pub- John Van Der Wielen, BY WILL JACKSON Index last May. of the DVP model in the lish accounts that revealthe recently-appointed However, MSCI delayed UAE and Qatar, they were their use of tax havens.managing director of Index provider MSCI has its potential re-classifica- concerned that the new Last, all tax havensFriends Life’s international decided not to upgrade tion decision, following the framework would not fully should be required tobusiness, hailed the deal as Qatar and the United Arab implementation of delivery safeguard their assets under exchange information each“an exciting development”. Emirates (UAE) from fron- versus payment (DVP) certain circumstances. year on the income gains Takaful offers an alter- tier to emerging market models on the Qatar In particular, they were recorded in their financialnative to conventional status, following an extend- Exchange, Dubai Financial worried about failed trades, institutions that belong toinsurance for Muslim inves- ed review period. Market and Abu Dhabi “where a forced sale of citizens of other countries,tors, allowing scheme The announcement was Securities Exchange, assets, without the owner’s with the tax authorities inmembers to pool money in a disappointment to some to allow market partici- consent, remains a the countries in whicha way that guarantees one investors in the region, pants to assess their possibility”. those individuals reside.another against loss or who at the start of 2011 effectiveness. As a result, many inter- Eurodad is a Brussels-damage. were anticipating a “wave In its statement last national investors and their based network of 54 non- For more on John Van of fund flows” into the two month, MSCI said that, custodians continued to governmental organisa-Der Wielen and Friends countries upon their while international institu- view the use of a dual tions from 19 countries thatLife, see MD Profile on expected promotion to the tional investors were account structure as a share a common interest inpage 22. MSCI Emerging Markets upbeat on the introduction requirement, it said. issues relating to debt.10 INTERNATIONAL ADVISER [www.international-adviser.com] JANUARY 2012
  11. 11. WITH SO MANY TOP FUNDS UNDER ONE ROOF, IT’S ONLY NATURAL THAT OUR CLIENTS FEEL AT HOME! They say home is where the heart is. We say home is where the best funds are to be found. Over the years, VAM Funds has gathered together a wide range of top performing funds, offering diversity and flexibility across all the major asset classes. Put them all together and you’ll find everything you need to cover your clients’ risk/return appetite – all under one solid, well-constructed roof! So come in and make yourself comfortable. Visit www.vam-funds.com or call us on +230 465 6860 today. WE HAVE YOU COVERED! Commodities Equity Fund Single Strategy Equity Driehaus Funds Multi Asset Fund RETURN Strategy Fund Asia Fixed Income Fund Global Government Bond Fund RISK For further information on VAM Funds please contact VAM Marketing on + 230 465 6860 or email us at info@vam-funds.comThis financial promotion is published by VAM Funds (26 Avenue de la Liberté L-1930 Luxembourg). For professional investors only. The funds are authorised by the Financial Services Authority (UK). This is not an offer to purchase shares, which mayonly be bought under the terms of the prospectus. The value of shares may go down as well as up. Changes in the rate of currency exchange may cause the value of the investment to go down or up. Past performance is no guarantee of future results.
  12. 12. NEWSGlobaleye addsto recruitment Investec boosts Luxembourg New Zealand’s public sectorservice with UK range with new strategies is ranked leasttraining hub BY WILL JACKSON tify underperforming corrupt in worldBY SIMON DANAHER stocks with favourable New Zealand is viewed as Investec Asset Management risk/reward ratios. having the world’s leastInternational advisory has expanded its Luxem- Investec GSF Emerging corrupt public sector,company Globaleye has bourg-domiciled range by Markets Multi-Asset, mean- according to the 2011opened a UK office to act launching a global equity while, uses flexible asset Corruption Perceptionsas a training and recruit- fund for its contrarian team, allocation. By varying its Index published byment hub. and an emerging market weightings to equities, local Transparency International. Jenny Owens, head of multi-asset portfolio for currency debt and hard cur- The index, which scoredrecruitment at the firm, Philip Saunders and John rency debt, the fund aims 183 countries and territoriessaid: “We have a clear man- Stopford, specialists in mul- to provide exposure to from zero (highly corrupt)date to build the recruit- ti-asset and fixed income Mundy: ‘opposes herd instinct’ emerging markets, but with to ten (very clean), award-ment function without investing, respectively. lower volatility than an ed the island a rating of 9.5.diluting the proposition of Investec GSF Global make decisions designed equity-only approach. Scandinavian nations alsoGlobaleye. Contrarian Equity, which to “oppose the herd instinct The multi-asset fund has fared well, with Denmark “This is great for our mirrors the £45m that drives market move- a minimum investment limit and Finland in joint-secondmanagement team who are UK-domiciled Investec ments”, thereby minimising of $3,000 and an annual place on 9.4, and Swedenlooking to build their oper- Global Special Situations volatility and correlation. management charge of ranked fourth on 9.3.ations, and even better for Fund, is co-managed by Their bottom-up invest- 1.8%. GSF Global Contrarian Singapore and Norwaypotential candidates since Alastair Mundy and Mark ment process avoids vul- Equity has the same mini- were the only other coun-we hold their hands Wynne-Jones. nerability to long-term mum investment limit and tries to receive scores ofthroughout the entire According to Investec, macro-trends or themes, an annual management more than nine. At therecruitment process.” Mundy and Wynne-Jones and instead seeks to iden- charge of 1.5%. bottom of the table were Globaleye said the call North Korea and Somalia, Expats earning more despite tough timescentre will also provide a both of which received rat-back-office service to its ings of just 1.0.international wealth man- Transparency Inter-agers, with a team of busi- BY RAY CLANCY Some 37% of expats say believe the economic situa- national, a Berlin-basedness development manag- the economic situation in tion in their country has “organisation leading theers solely booking appoint- Expat wealth remains their country has stayed deteriorated actively look- fight against corruption”,ments for advisers. robust despite the tough the same, while 30% think ing to return home, and warned that ongoing civil The company added it global economic condi- it has worsened in the 63% intending to stay in unrest around the worldaims to increase the tions and political unrest past year. their current location. reflects concerns from citi-number of business devel- experienced in some But this is more positive Saudi Arabia tops the zens that their leaders areopment managers to more regions last year, a study of than the 2010 survey, survey’s expat economic neither transparent northan 30 by the end of 2012. hundreds of countries which found that almost league table, followed by accountable enough. Company chairman Tim has found. half of expats said that the Egypt and Singapore. Huguette Labelle, chairSearle said: “We present a Even in countries where economy in their current Expats in these coun- of Transparency Inter-superb opportunity for the economy is reported to country had deteriorated. tries work predominantly national, said: “[In 2011]those individuals who are be weak, expats report Indeed, the survey in the banking or financial we have seen corruptionlooking for a solid partner higher earnings than in shows that expats remain sector, the survey shows, on protestors’ banners beto take them into some of their home country, accord- relatively robust to the and they cited career pros- they rich or poor. Whetherthe most exciting markets ing to the HSBC 2011 Expat wider turmoil, with only pects as one of the key in a Europe hit by debtworldwide.” Explorer survey. 14% of respondents who reasons for moving. crisis or an Arab world starting a new political era, leaders must heed theBarclays bolsters its Greater China desk in Singapore demands government.” for betterBarclays Wealth has strategies in credit, deriva- Asia Pacific markets strate- “We are committed to The index, which wasappointed Carol Chen to tives, foreign exchange, gy in 2012, as it seeks to expanding the scope of compiled with supporthead its Greater China portfolio management and more than double its assets offerings to better serve from Ernst & Young, drewdesk in Singapore. Chen trust structuring. under management in the the needs of our clients, on assessments and busi-took up the role last Chen also leads the team sub-region during the next and this allows us to offer ness opinion surveys car-month, and is responsible in delivering solutions in three years. Greater China clients ried out by independentfor building and managing the areas of capital raising, “There is a compelling choices for doing business institutions. These includ-the team. mergers and acquisitions, strategic rationale for with a Hong-Kong based ed questions relating to the The Singapore-based and strategic risk manage- establishing a Greater or Singapore-based wealth bribery of public officials,Greater China desk, which ment, leveraging the capa- China team in Singapore to manager.” kickbacks in public pro-was created in 2011, looks bilities of Barclays Capital. complement our estab- Chen joined Barclays curement, embezzlementafter the wealth manage- The company said it lished presence in Hong Wealth from UBS in of public funds, and thement needs of high net will continue to focus on Kong,” said Pakorn Singapore, where she strength and effectivenessworth and ultra-high net Greater China and Taiwan Boonya-kurkul, the head worked as managing direc- of public sector anti-cor-worth clients, offering as part of its overall key of North Asia. tor from 2007. ruption efforts.JANUARY 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 13
  13. 13. NEWSAbu Dhabi Bank receives Deutsche names Masud aslicence to open in JerseyJersey has granted AbuDhabi Commercial Bank which enables the regulato- ry authorities to co-operate chief officer for UAE region(ADCB), the third-largest on supervisory matters and BY RAY CLANCY eign wealth funds and com-bank in the United Arab exchange information. panies, for their financing,Emirates (UAE), a licence Senator Alan Maclean, Deutsche Bank has appoint- asset and liability manage-to operate on the island, minister for economic ed strategic initiatives spe- ment, and other strategicthrough a managed bank development, States of cialist Nadeem Masud as its initiatives.arrangement with AIB Jersey, said the opening chief country officer for the Masud takes over theJersey. of a Jersey Finance office United Arab Emirates. country chief and gen- ADCB, which is 58% in Abu Dhabi increases Masud, the head of eral manager roles fromowned by the Abu Dhabi the island’s commitment to corporate and investment Salman Al-Khalifa, who leftGovernment via the Abu the Gulf. bank (CIB) coverage for Deutsche Bank at the endDhabi Investment Council, According to Geoff the Middle East and North of 2011, to pursue oppor-will initially offer current Cook, chief executive of Africa (MENA), was due Masud: ‘commitment to region’ tunities outside investmentaccounts, deposit-taking Jersey Finance, he antici- to take over as country banking.products and term deposits pates greater business flows chief and general manager Deutsche Bank for 14 years, Al-Khalifa joinedto high net worth individu- to Jersey from the region. of the Deutsche Bank AG initially joining its relative Deutsche Bank in 2008,als. Accounts will be avail- “The decision by Dubai (DIFC) branch at the value group in 1997. From and later became head ofable in multiple currencies. ADCB to opt for Jersey start of this month, subject 2002 to 2004, he was the global markets for MENA. The announcement fol- as the location to estab- to regulatory approval. head of fund derivatives for “Salman has been one oflowed the signing of a lish its offshore banking The appointment is global markets in London. the architects of Deutschememorandum of under- offering reflects well on designed to build on the He moved to Dubai in Bank’s successful build-outstanding between the cen- Jersey’s reputation in the bank’s commitment to 2004 as the local head of in MENA,” said Aram. “Histral bank of the UAE and Gulf region, and will add the region, said Ashok fixed income sales, before contribution was an impor-the Jersey Financial Services appreciably to the poten- Aram, the chief executive being appointed head of tant factor in DeutscheCommission in Abu Dhabi. tial for increasing bank- officer of Deutsche Bank CIB coverage for MENA. Bank becoming the lead- The memorandum cre- ing business in the future” for MENA. In this role he focused on ing international investmentates a formal mechanism Cook said. Masud has been with top-tier sovereigns, sover- bank in the region.”
  14. 14. Sometimes youwant answersfor questionsyou’ve yetto ask.Who can help?Our Technical Services Team are always there for you to answer any Pre-sales: 01707 422999queries you may have. But they also focus on being proactive; taking Onshore existing business: 0845 6060708the initiative in unearthing new information and making helpful Offshore existing business: 01624 820377suggestions. Whether it’s the likely impact of upcoming legislation, ican@canadalife.co.ukor ideas that could create new opportunities, we’re always looking toadd value. Which helps you add even more value for your clients.We’ve brought all this together as ican, a new initiative that reflectsour commitment to excellence in our Technical Services offering.Technical ServicesEmpowering Professional AdvisersFor professional adviser use only.Canada Life Limited, registered in England no. 973271. Registered office Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Tel: 0845 7226232Fax: 01707 646088 www.canadalife.co.uk Canada Life International Limited, Canada Life House, Alexandra Road, Castletown, Isle of Man IM9 1TGTel: +44 (0) 1624 820200 Fax: +44 (0) 1624 820201 www.canadalifeint.com Registered in the Isle of Man no. 33178. Member of the Association ofInternational Life Offices. Canada Life group consists of Canada Life Limited, Canada Life Asset Management Limited (both authorised and regulated by theFinancial Services Authority), Canada Life International Limited and CLI Institutional Limited (Isle of Man registered companies authorised and regulatedby the Isle of Man Insurance and Pensions Authority). All promotional material produced is approved by Canada Life Limited.
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