Robert Gaines-Cooper. A name that may become infamous to all Britons abroad.
If all this resident, domicile, non-dom, nonresident, 91 days and IR20 stuff wasn't heady enough already, the courts have basically re-confirmed that the HMRC is almighty:
http://www.international-adviser.com/lwm/article/1249
If you have any ties to the UK and are (or thought you were) playing the non-res game, go see your UK tax adviser.
[Edit: and should you be caught of the wrong side of the tax law, you will be a poster boy for the HMRC under their new name & shame campaign: http://www.ft.com/cms/s/2/5cd320c8-26e4-11df-8c08-00144feabdc0.html]
Monday, February 22, 2010
Putting the Fun in Dysfunctional
The UK law firm of Herbert Smith has the marketing machine rolling recently including a "new" private client practice in Hong Kong: http://asia.legalbusinessonline.com/news/breaking-news/herbies-targets-wealth-management-industry-with-new-hong-kong-practice/40419
Herbies is certainly not new in Asia but was traditionally more of a corporate law firm and may have be only familiar to those on the corporate trustee side. Now they have set the hounds loose hoping to drum up contentious trust and estate business.
And if Herbies is successful, then that means trouble for somebody. Their raison d'être is to stir up trouble: sue or be sued. They are the antithesis of family governance for a family that stays happily together means no business for them. They require dysfunctional, and somewhat greedy families. They are looking for the respective sons and daughters of Hidetora Ichimonji and King Lear.
As the patriarch system of wealth in Asia is slowly dying out and being replaced by by western educated 2nd and 3rd generations, "issues" are more often settled in court rather than the old school way of being settled out of court. "All under heaven" is being replaced by fractional and warring family camps. Gentlemen's agreements are now replaced by writs. Appeasing the old man is now being replaced by marginalizing the old man.
If you're a trust/estate beneficiary or feel you should have been one, call them.
If you're a trustee or executor, avoid them or put them on retainer so they can't be used against you.
Herbies is certainly not new in Asia but was traditionally more of a corporate law firm and may have be only familiar to those on the corporate trustee side. Now they have set the hounds loose hoping to drum up contentious trust and estate business.
And if Herbies is successful, then that means trouble for somebody. Their raison d'être is to stir up trouble: sue or be sued. They are the antithesis of family governance for a family that stays happily together means no business for them. They require dysfunctional, and somewhat greedy families. They are looking for the respective sons and daughters of Hidetora Ichimonji and King Lear.
As the patriarch system of wealth in Asia is slowly dying out and being replaced by by western educated 2nd and 3rd generations, "issues" are more often settled in court rather than the old school way of being settled out of court. "All under heaven" is being replaced by fractional and warring family camps. Gentlemen's agreements are now replaced by writs. Appeasing the old man is now being replaced by marginalizing the old man.
If you're a trust/estate beneficiary or feel you should have been one, call them.
If you're a trustee or executor, avoid them or put them on retainer so they can't be used against you.
Thursday, February 11, 2010
Don't Let The Door Hit You On The Way Out
Don't really have a point to this entry but.....Kevin Horrocks has left Merrill Lynch-BOA. Bear with me...there is an Asian connection.
Unless you work in Marina Bayfront, you probably don't know Kevin. Kevin used to head up ML's ITWS (International Trust & Wealth Structuring - I think that's what it is) out of Switzerland. As big of a fish in the bank trust industry as they come. Surely paid well too.
I suspect that this was an unpleasant divorce but how do they announce his departure? Just a footnote to the announcement of the appointment of his successor. That's life. That's also how many jobs/tour-of-duty/careers end. No big send off, no congratulations, no thanks, no fanfare, no pat on the back for years of hard work, no nothing. In fact Kevin got his name in which is more than most people.
Just to show how old I am, Kevin used to peddle trusts out at Credit Suisse in Singapore. This is before they even had a licensed trust company in Singapore.
Unless you work in Marina Bayfront, you probably don't know Kevin. Kevin used to head up ML's ITWS (International Trust & Wealth Structuring - I think that's what it is) out of Switzerland. As big of a fish in the bank trust industry as they come. Surely paid well too.
I suspect that this was an unpleasant divorce but how do they announce his departure? Just a footnote to the announcement of the appointment of his successor. That's life. That's also how many jobs/tour-of-duty/careers end. No big send off, no congratulations, no thanks, no fanfare, no pat on the back for years of hard work, no nothing. In fact Kevin got his name in which is more than most people.
Just to show how old I am, Kevin used to peddle trusts out at Credit Suisse in Singapore. This is before they even had a licensed trust company in Singapore.
Wednesday, February 10, 2010
Put Your Money Where Your Mouth Is
Jimmy Lee is head of Head of Asia for Clariden Leu. He should be no stranger to anyone in the PB/WM arena in South Asia having worked for many players for many years. Another chronic job hopper. Jimmy is a fine banker and I'm sure he and Chit will keep CL relevant and this should not be construed as a personal attack but rather more of keeping track of the politicians and their election promises.
I love it when senior banking officials come out and talk about how he feels "that clients are increasingly demanding a comprehensive range of services that go far beyond traditional wealth management and the provision of investment advice. This spectrum of services spans financial and tax advice, succession and inheritance planning..........." We trust people love that sexy talk.
http://www.financeasia.com/News/166669,jimmy-lee-from-clariden-leu-discusses-asian-private-banking.aspx
The problem isn't that they are not aware of the market potential for "tax, succession and inheritance planning", but rather how to implement a strategy and course of action. Exercise and eating a balanced diet are known contributors to good health. How many people actually have a plan to exercise and eat right? How often are we led astray by that deep fried curry fish ball or pint of ale?
So Jimmy, is this all rhetoric or will I-Ning be getting some company? Will you go on a hiring binge for people that can offer tax advice, succession and inheritance planning? What's your plan to cover the spectrum of needs your client base wants? Let's keep tabs shall we?
[Edit - It seems in Jimmy's word is gold! I understand that he poached two former wealth planning colleagues from Deutsche PWM in Hong Kong in March. I have the names of the 2 ladies but have no idea who they are - I do not claim to know everybody but would guess that they are relatively new to the arena]
I love it when senior banking officials come out and talk about how he feels "that clients are increasingly demanding a comprehensive range of services that go far beyond traditional wealth management and the provision of investment advice. This spectrum of services spans financial and tax advice, succession and inheritance planning..........." We trust people love that sexy talk.
http://www.financeasia.com/News/166669,jimmy-lee-from-clariden-leu-discusses-asian-private-banking.aspx
The problem isn't that they are not aware of the market potential for "tax, succession and inheritance planning", but rather how to implement a strategy and course of action. Exercise and eating a balanced diet are known contributors to good health. How many people actually have a plan to exercise and eat right? How often are we led astray by that deep fried curry fish ball or pint of ale?
So Jimmy, is this all rhetoric or will I-Ning be getting some company? Will you go on a hiring binge for people that can offer tax advice, succession and inheritance planning? What's your plan to cover the spectrum of needs your client base wants? Let's keep tabs shall we?
[Edit - It seems in Jimmy's word is gold! I understand that he poached two former wealth planning colleagues from Deutsche PWM in Hong Kong in March. I have the names of the 2 ladies but have no idea who they are - I do not claim to know everybody but would guess that they are relatively new to the arena]
Monday, February 8, 2010
Thieves Are Never Rogues Among Themselves
In our marvelous world, you can cheat on your taxes, you can secretly stash the money away in some financial institution abroad, someone working there will steal your personal and account data, some government/tax authority will buy the stolen goods since righteousness (and revenue) trumps law, they will prosecute you and parade you in front of the media like a prized prisoner-of-war, what can you do?
Sue! If you're a tax cheat and your data is on the market like the HSBC Swiss Private Bank data that is being auctioned off, start building your lawsuit. Did they tell you about the stolen data? Did they tell you about the tax amnesty in your home country? etc......
http://www.nytimes.com/aponline/2010/02/08/business/AP-EU-Liechtenstein-Tax-Evasion.html
One German tax evader has successfully sued a LGT Bank subsidiary, their fiduciary/trust business, for failing to inform him that his data was stolen preventing him the chance to have declared himself to German authorities and avoided more severe fine for tax fraud.
Where's the honour among thieves I ask?
Sue! If you're a tax cheat and your data is on the market like the HSBC Swiss Private Bank data that is being auctioned off, start building your lawsuit. Did they tell you about the stolen data? Did they tell you about the tax amnesty in your home country? etc......
http://www.nytimes.com/aponline/2010/02/08/business/AP-EU-Liechtenstein-Tax-Evasion.html
One German tax evader has successfully sued a LGT Bank subsidiary, their fiduciary/trust business, for failing to inform him that his data was stolen preventing him the chance to have declared himself to German authorities and avoided more severe fine for tax fraud.
Where's the honour among thieves I ask?
Friday, February 5, 2010
Back to the Drawing Board
A few years ago, a senior executive at a European bank with vested but not direct interest, asked me about possible candidates for a greenfield set up in Singapore. I threw out 2 names that I thought were competent and possibly good fits. A greenfield requires special talent and skills and market contacts. Trailblazers are a special breed. Most in Hong Kong and Singapore are followers. The educational system and pecking order in most organisations have trained them to react or follow.
Apparently they contacted one, ignored the other, but closed the deal with an in-house transfer from Europe. This person goes out and hires a marginal assistant to help with local languages. Together they set up shop. Several years of seeing red on the bottom line, they are re-organising. The first thing building and driving a greenfield business requires is: bridges, very strong bridges. People on an island usually die.
Speculation on my part but the lack of success (which may or may not be pure failure) of the incumbent lies in failing to build the right number of bridges, building them on the right spot, or building too flimsy of a bridge or letting a bridge burn down.
The number of bridges you need depend on the organisation. A bank trust company needs a bridge to the private bankers. Independent trustees need many bridges to business feeders like lawyers and accountants. Too few bridges and business will only trickle in.
The right spot for the bridge are those that the lead you to supporters, someone who will send business your way, be it in-house or external. Some of those bridges may be half way around the world. Some just down the hall. You could have a 100 bridges but if none lead you to a supporter, then those bridges are useless.
The bridge must be strong to withstand the forces of nature, which are greed, self-interest, self-preservation and self-promotion. Money, politics, fame and recognition factors stand to topple otherwise perfectly located bridges. Put too high of a toll on the bridge and people travel by other routes. Do not have express lanes and those impatient will travel other routes. Do you have incentives (referral fees, scorecard points, mirror accounts, retro-cessions, etc) for people to use your bridge? There is a old movie called Field of Dreams with Kevin Costner where the guy is told "If you build it, he will come". Well, you can build bridges but without a reason why, people will not come. Asians can be some of the most self-centered, self-serving people, I-not-we people in business. There are plenty of bankers that undermine their in-house trust (or other businesses) if it better serves them. Loyalty is often bought, not earned and definitely not given.
Certain bridges will be burnt down. This is usually Part II of building the business. If it wasn't abundantly clear, getting people on your island is the first goal, hence the need for bridges. Now that you've got them, how you deal with them determines whether they will ever come back. Screw up in front of a lawyer and his client and the bridge to that law firm may close permanently. Dispute fees with the Team Head for Indonesia and that bridge will close down. Allow too many on the bridge and the bridge collapses. Knowing which bridges are mission critical and which ones aren't is paramount. Allow too many burning bridges and you get cut off from the world.....again.
So to the lucky guy or gal stepping in: go back to the drawing board and start sketching and mapping out your bridges, inspect the ones you have, tear down or repair the ones you need, ask for resources to build the ones you don't have.
If all this was too abstract....just think SimCity.
Apparently they contacted one, ignored the other, but closed the deal with an in-house transfer from Europe. This person goes out and hires a marginal assistant to help with local languages. Together they set up shop. Several years of seeing red on the bottom line, they are re-organising. The first thing building and driving a greenfield business requires is: bridges, very strong bridges. People on an island usually die.
Speculation on my part but the lack of success (which may or may not be pure failure) of the incumbent lies in failing to build the right number of bridges, building them on the right spot, or building too flimsy of a bridge or letting a bridge burn down.
The number of bridges you need depend on the organisation. A bank trust company needs a bridge to the private bankers. Independent trustees need many bridges to business feeders like lawyers and accountants. Too few bridges and business will only trickle in.
The right spot for the bridge are those that the lead you to supporters, someone who will send business your way, be it in-house or external. Some of those bridges may be half way around the world. Some just down the hall. You could have a 100 bridges but if none lead you to a supporter, then those bridges are useless.
The bridge must be strong to withstand the forces of nature, which are greed, self-interest, self-preservation and self-promotion. Money, politics, fame and recognition factors stand to topple otherwise perfectly located bridges. Put too high of a toll on the bridge and people travel by other routes. Do not have express lanes and those impatient will travel other routes. Do you have incentives (referral fees, scorecard points, mirror accounts, retro-cessions, etc) for people to use your bridge? There is a old movie called Field of Dreams with Kevin Costner where the guy is told "If you build it, he will come". Well, you can build bridges but without a reason why, people will not come. Asians can be some of the most self-centered, self-serving people, I-not-we people in business. There are plenty of bankers that undermine their in-house trust (or other businesses) if it better serves them. Loyalty is often bought, not earned and definitely not given.
Certain bridges will be burnt down. This is usually Part II of building the business. If it wasn't abundantly clear, getting people on your island is the first goal, hence the need for bridges. Now that you've got them, how you deal with them determines whether they will ever come back. Screw up in front of a lawyer and his client and the bridge to that law firm may close permanently. Dispute fees with the Team Head for Indonesia and that bridge will close down. Allow too many on the bridge and the bridge collapses. Knowing which bridges are mission critical and which ones aren't is paramount. Allow too many burning bridges and you get cut off from the world.....again.
So to the lucky guy or gal stepping in: go back to the drawing board and start sketching and mapping out your bridges, inspect the ones you have, tear down or repair the ones you need, ask for resources to build the ones you don't have.
If all this was too abstract....just think SimCity.
Tuesday, February 2, 2010
What We Really Do At Work........
SWF or NSWF that is the question. Whether 'tis nobler in the mind to fantasize about Victoria's Secret models or just scroll through her pictures on my computer......
Obviously Macquarie Bank in Sydney Australia has some IT policy issues to deal with now that this is making the news. http://www.smh.com.au/national/interest-in-assets-macquarie-worker-caught-ogling-pictures-of-miranda-kerr-live-on-tv-20100203-nbsi.html
Some "boob" is likely to lose his job over this one and make life that much more miserable for the rest of us who like to keep abreast of Page 3 girls at the start of each day.
http://www.youtube.com/watch?v=v1m8a4Jl4ZI Look over the interviewee's right shoulder about 1 minute in.
Obviously Macquarie Bank in Sydney Australia has some IT policy issues to deal with now that this is making the news. http://www.smh.com.au/national/interest-in-assets-macquarie-worker-caught-ogling-pictures-of-miranda-kerr-live-on-tv-20100203-nbsi.html
Some "boob" is likely to lose his job over this one and make life that much more miserable for the rest of us who like to keep abreast of Page 3 girls at the start of each day.
http://www.youtube.com/watch?v=v1m8a4Jl4ZI Look over the interviewee's right shoulder about 1 minute in.
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