Although the new economic substance requirements for offshore centres have affected some HNWIs, estate and trust structures require only “slight tweaks” to remain compliant, according to Dawn Quek, principal at Baker McKenzie Wong & Leow. Following in the footsteps of the European Union (EU), the OECD issued an economic substance rule which came into effect on 1 January. Accordingly, entities incorporated in […]

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Data localisation rules are “adversely impacting” the financial services sector, prompting the European Union to strike a balance between privacy and security and the free flow of data across borders, according to the Global Financial Market Association (GFMA). “Policymakers prescribe data localisation requirements with the intention to improve resilience of key financial services, protect privacy and increase data security. Data localisation policies […]

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Private banks in the region believe political risks are likely to dissipate in 2019 while economic headwinds will be a greater cause for concern, despite the former grabbing the majority of headlines of late. “There were three major things markets were worried about in the fourth quarter of last year: trade war, Brexit, and the Italian problem,” said Norman Villamin, […]

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The General Data Protection Regulation (GDPR) regime that will come into force in Europe on 25 May this year will require private banks with a European presence to implement new data management policies, lawyers have warned. The impending GDPR rules grant EU citizens extended control over how data collecting entities can use their information. In addition, financial institutions are required […]

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European equities are facing “two major challenges”, namely declining economic and earnings momentum, which are likely to prolong underperformance versus US equities, according to DBS’s CIO, Hou Wey Fook. Year-to-date, European equities have lagged their US peers, with MSCI Europe heading south by 1.86% compared MSCI USA’s 0.63% downturn. The Singaporean bank expects this trend to continue into the second […]

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Financial institutions should pay attention to the upcoming update on the European Union data privacy regulation, even if they are Asia-based, lawyers have warned. A new version of the General Data Protection Regulation (GDPR) is due to be implemented on 25 May this year. As it comes into effect, legal experts say Asian banks should be prepared for the new law’s […]

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More Asian private investors are accessing developed market (DM) high yield (HY) bonds via multi-strategy platforms instead of concentrating on a specific market, according to Barings. “[Multi-strategy platforms] allow them to dial up or dial down their exposure to Europe or the US, depending on which market offers the best spread opportunity,” Martin Horne, head of European high yield investments […]

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As inflation in Europe is rising, the European Central Bank (ECB) is likely to tighten its policies moving forward despite the stronger euro, Pictet Wealth Management says. “We think that any core inflation print at or above the August level of 1.2% would be strong enough for the ECB to move ahead with policy normalisation,” the bank said in its […]

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DBS says that US equities are caught between the “cross-currents” of favourable earnings and jobs growth momentum on the one hand and heightened geopolitical uncertainties on the other. “The current earnings reporting season has reached an advanced stage and on the whole, US earnings momentum remains upbeat,” the bank said in its latest investment note. Sentiment was also given a […]

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European equities remain more attractive than those in the US, according to Julius Baer, which notes that while corporate earnings growth will likely fall short of expectations in both countries this year, European earnings will outperform on a relative basis. “For the full year 2017, our models confirm earnings growth of 5-6% in the US and circa 8% in the […]

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Amid the low interest rate environment, developed market inflation is expected to rise materially in 2017, according to UBS Wealth Management, which forecasts full-year CPI readings of 2.3% and 1.6% in the US and EU, respectively. The bank believes the low interest rate environment will buoy global equities. “Corporate earnings are rising in most regions, supported by strengthening consumer demand, […]

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“[The] base case is a hard Brexit, the question is how much harder can it get,” says Bank of Singapore in its latest investment strategy and research note that focuses on Theresa May’s pledging to trigger Article 50 and start the formal exit process. UK’s decision to neither be remain in the single market nor pursue the partial benefits of the […]

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If there was any doubt regarding the seriousness of the US Treasury’s intent to mop up taxes from wealthy but errant citizens, the latest intergovernmental agreement (IGA) should conclusively put these to rest. The IGA expands on an in-principle agreement first announced by the US in February between itself and the UK, France, Germany, Italy and Spain. In June, Japan […]

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