Take a look at the survey raised by STEP to its Asian members. Members were asked to choose to a degree how much agreed or disagreed (or neutral) to the statements below - typical five-level Likert item. The results will supposedly be turned into a report so people who make big decisions can make well, big decisions.
So let's rig the results, shall we? After all, we all want to keep our jobs and ensure the money faucet doesn't turn off right?
1. Which branch of STEP are you currently a member of?
2. Hong Kong and Singapore will continue to take divergent paths in wealth planning
3. Regulatory initiatives to increase tax compliance in Asia will increase
4. The regulatory regimes of Hong Kong and Singapore will converge
5. China is several decades away from making an impact on the wealth planning industry
6. Tax is not the major driver of demand for trust structures in Asia
7. Clients' awareness of the need for tax compliance is growing
8. Asian clients will remain unique in seeking very strong control over their assets
9. Asian clients will remain very sensitive to fees
10. Banks will continue to have major competitive advantages in Asian wealth planning
11. The lack of fiduciary and legal talent is a major constraint on the future growth of the industry
12. The perception of Asia as a low cost financial centre is inaccurate
13. New wealth planning business in Asia will continue to be private banker driven
14. Banks will continue to be the primary providers of investment services
15. Independent asset management boutiques will increase their share of the investment services market
16. Both Hong Kong and Singapore will remain primarily offshore focussed in wealth planning
17. Singapore will be the dominant centre for Private Client Trust Services in Asia
18. Private wealth management in Hong Kong will remain focussed on corporate structures
19. Trusts in Asia will continue to be used primarily for asset protection purposes
20. The widespread use of private trust companies is consistent with a health wealth planning industry
Wednesday, September 28, 2011
Sunday, September 4, 2011
I Read The News Today….Oh Boy
What to make of all the news these days?
You can’t run, but you can continue to hide. Germany and Switzerland sign a tax deal whereby German tax cheats who stashed undeclared money away in Swiss banks can pay a one-time fine of some 19-34% on the assets hidden and keep their identity a secret for an ongoing 26% withholding fee. Hmmmm, did anyone bother to read the EUSD beforehand? The deal cost the Swiss banks some $2B CHF but now they’ve got happy anonymous customers again. Probably take them 3 years to recoup, less if the markets rebound. I think they've also agreed not to buy CDs anymore: http://trustprofessioninasia.blogspot.com/2011/04/new-performance-benchmarks-for-roi-on.html
http://www.sif.admin.ch/00488/index.html?lang=en&msg-id=40533
The UK made a similar deal a few days later. But they only get $500M CHF lump sum from the banks but a slightly higher entry fee of 27-48% with the same 19-34% annual charge from the dodgy Brits. And for all those working in banks, please note that: “The United Kingdom further states that the criminal prosecution of bank employees due to participation in tax offences is highly unlikely.” In other words, carry on lads.
http://www.sif.admin.ch/00488/index.html?lang=en&msg-id=40731
Vive la différence, France, declined to enter such a deal preferring to tackle tax evasion the old way, whereas the others “not only respects the protection of bank clients' privacy, but also ensures the implementation of legitimate tax claims”. Of course who knows what the hell the new French Wealth taxes, including a nice section on trusts (trusts in France?!), will ultimately look like? Time to kick out the French clients I guess.
Of course, just blacklist the Swiss like the Italians did.
For the adventurous, some will tell you that Singapore should be a destination for your black money. http://www.accountancyage.com/aa/news/2106406/swiss-banks-help-clients-singapore
Nothing new, been happening for years. Of course if anyone has ever bother to read Annex A [http://iras.gov.sg/pv_obj_cache/pv_obj_id_633E3BEAD35D7E54B6C4AACEDF6BD0869B6E0300/filename/Protocol%20amending%20Singapore-United%20Kingdom%20DTA%20(Ratified)(9Dec10).pdf ], of the Agreement between UK and Singapore, you’ll have noted that it is the “new” standards so I’m not sure why author Jaimie Kaffesh says: “ Singapore, which has a secretive banking system, with no information sharing agreements with western states”. Must be a Yank.
[Update: on the 6th of Sept, the Monetary Authority of Singapore (MAS) decided to make a statement and reminded the banks to be more "alert" to agreements between countries to resolve tax issues.
This is because such agreements between countries may create increased risk of illicit fund flows, said MAS.
The central bank, which issued guidelines to all financial institutions here to safeguard the integrity of the financial system, also wants them to undertake a more critical review of any asset transfers into Singapore from such countries.
In its guidelines for financial institutions to safeguard the integrity of Singapore's financial system published Tuesday**, the MAS said: "Financial institutions should carefully evaluate the risks and establish the bona fides of customers before accepting such assets. If they have reason to suspect that the assets are illegitimate, they should file Suspicious Transaction Reports and where appropriate, discontinue the business relationship."
Since the customer is already a customer of my financial institution's Swiss branch, there's no way they would have illegitimate assets or not be bona fides right? In other words, no problem here, "double confirm la".
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1151436/1/.html
**http://www.mas.gov.sg/legislation_guidelines/banks/guidelines/Guidelines_for_FIs_to_Safeguard_the_Integrity_of_Singapore_Financial_System.html ]
Speaking of the Yanks, FATCA!! (turning out to be a nasty 5-letter word). Another year to for all sides to figure out what the hell is this? How the hell are we to implement this? How the hell are we to enforce this? Perhaps this was more about job creation/retention rather than taxes.
I guess Credit Suisse will have a nice US $1B provision in the books for its alleged sins against the US: http://www.ifcreview.com/viewnews.aspx?articleId=3352
https://www.credit-suisse.com/news/en/media_release.jsp?ns=41815
Well there are about to be some 10,000 financial/banking job cuts around the world but Asia seems to buck the trend. UBS’ Asia CEO Kathryn Shih says it hired some 300 people in the past 2 months alone, whereas Credit Suisse says it let go some 20% of its WM business in India (ok that 20% equates to like 12 out 60 people). Weird isn’t that they’re not expanding headcount by 4000trillion percent in the same country touted to be the next economic engine of the world. Geez, won’t they be undermanned to handle the doubling of HNWIs that will happen by 2015 per a report by Julius Baer?
And a warm welcome to Singapore for Hilary May. Who? A transfer (or refugee? So hard to tell this days) from Jersey to head up RBC trust proposition in Asia it seems. Transnational trusts eh? http://www.rbcwminternational.com/pdf/newsletter/RBC-appointments.pdf
Unfortunately, this is not the Not the Nine O'Clock News.
You can’t run, but you can continue to hide. Germany and Switzerland sign a tax deal whereby German tax cheats who stashed undeclared money away in Swiss banks can pay a one-time fine of some 19-34% on the assets hidden and keep their identity a secret for an ongoing 26% withholding fee. Hmmmm, did anyone bother to read the EUSD beforehand? The deal cost the Swiss banks some $2B CHF but now they’ve got happy anonymous customers again. Probably take them 3 years to recoup, less if the markets rebound. I think they've also agreed not to buy CDs anymore: http://trustprofessioninasia.blogspot.com/2011/04/new-performance-benchmarks-for-roi-on.html
http://www.sif.admin.ch/00488/index.html?lang=en&msg-id=40533
The UK made a similar deal a few days later. But they only get $500M CHF lump sum from the banks but a slightly higher entry fee of 27-48% with the same 19-34% annual charge from the dodgy Brits. And for all those working in banks, please note that: “The United Kingdom further states that the criminal prosecution of bank employees due to participation in tax offences is highly unlikely.” In other words, carry on lads.
http://www.sif.admin.ch/00488/index.html?lang=en&msg-id=40731
Vive la différence, France, declined to enter such a deal preferring to tackle tax evasion the old way, whereas the others “not only respects the protection of bank clients' privacy, but also ensures the implementation of legitimate tax claims”. Of course who knows what the hell the new French Wealth taxes, including a nice section on trusts (trusts in France?!), will ultimately look like? Time to kick out the French clients I guess.
Of course, just blacklist the Swiss like the Italians did.
For the adventurous, some will tell you that Singapore should be a destination for your black money. http://www.accountancyage.com/aa/news/2106406/swiss-banks-help-clients-singapore
Nothing new, been happening for years. Of course if anyone has ever bother to read Annex A [http://iras.gov.sg/pv_obj_cache/pv_obj_id_633E3BEAD35D7E54B6C4AACEDF6BD0869B6E0300/filename/Protocol%20amending%20Singapore-United%20Kingdom%20DTA%20(Ratified)(9Dec10).pdf ], of the Agreement between UK and Singapore, you’ll have noted that it is the “new” standards so I’m not sure why author Jaimie Kaffesh says: “ Singapore, which has a secretive banking system, with no information sharing agreements with western states”. Must be a Yank.
[Update: on the 6th of Sept, the Monetary Authority of Singapore (MAS) decided to make a statement and reminded the banks to be more "alert" to agreements between countries to resolve tax issues.
This is because such agreements between countries may create increased risk of illicit fund flows, said MAS.
The central bank, which issued guidelines to all financial institutions here to safeguard the integrity of the financial system, also wants them to undertake a more critical review of any asset transfers into Singapore from such countries.
In its guidelines for financial institutions to safeguard the integrity of Singapore's financial system published Tuesday**, the MAS said: "Financial institutions should carefully evaluate the risks and establish the bona fides of customers before accepting such assets. If they have reason to suspect that the assets are illegitimate, they should file Suspicious Transaction Reports and where appropriate, discontinue the business relationship."
Since the customer is already a customer of my financial institution's Swiss branch, there's no way they would have illegitimate assets or not be bona fides right? In other words, no problem here, "double confirm la".
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1151436/1/.html
**http://www.mas.gov.sg/legislation_guidelines/banks/guidelines/Guidelines_for_FIs_to_Safeguard_the_Integrity_of_Singapore_Financial_System.html ]
Speaking of the Yanks, FATCA!! (turning out to be a nasty 5-letter word). Another year to for all sides to figure out what the hell is this? How the hell are we to implement this? How the hell are we to enforce this? Perhaps this was more about job creation/retention rather than taxes.
I guess Credit Suisse will have a nice US $1B provision in the books for its alleged sins against the US: http://www.ifcreview.com/viewnews.aspx?articleId=3352
https://www.credit-suisse.com/news/en/media_release.jsp?ns=41815
Well there are about to be some 10,000 financial/banking job cuts around the world but Asia seems to buck the trend. UBS’ Asia CEO Kathryn Shih says it hired some 300 people in the past 2 months alone, whereas Credit Suisse says it let go some 20% of its WM business in India (ok that 20% equates to like 12 out 60 people). Weird isn’t that they’re not expanding headcount by 4000trillion percent in the same country touted to be the next economic engine of the world. Geez, won’t they be undermanned to handle the doubling of HNWIs that will happen by 2015 per a report by Julius Baer?
And a warm welcome to Singapore for Hilary May. Who? A transfer (or refugee? So hard to tell this days) from Jersey to head up RBC trust proposition in Asia it seems. Transnational trusts eh? http://www.rbcwminternational.com/pdf/newsletter/RBC-appointments.pdf
Unfortunately, this is not the Not the Nine O'Clock News.
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