Swiss banks have had to totally change their approaches for wealthy clients, because of fiscal-transparency obligations. After the Crédit Suisse and UBS scandals, the Swiss banking sector had to clean up their image regarding tax evasion
In Australia, S&P Global Ratings just decided to downgrade the credit quality of 23 banks and lenders, including Australia’s biggest regional banks. The rating agency fears that the rise in property prices and the high level of household debt could lead, in an adverse scenario, to big difficulties for the Australian economy.
According to the recent study “Global Wealth 2107” from Boston Consulting Group (BCG), the worldwide private financial wealth reached $166 trillion by the end of 2016. On average, the global financial wealth of households grew by 5.3 percent in 2016, compared to 4.4 percent the previous year.
US President Donald Trump and the Republican-controlled Congress have placed a high priority on tax reform. Their goal is to boost the economy in the United States and sustain the corporates’ development.
In the United Kingdom, the switch from a defined-benefit (DB) pension system to a defined-contribution (DC) system is effective in the private sector.
For pension funds, one important piece of data used to estimate the engagement of the fund is the discount rate. This rate is used to evaluate the present value of the pensions to be paid in the future to retired beneficiaries of the plan.
Defined-benefit pension plans are in turmoil for many reasons: increase in longevity, ageing populations, inflation and protracted low interest rates are causing funding gaps to pension funds and their sponsors.
The consequences of lower rates on pension funds have been reported in numerous articles, but the low long-term rates environment is expected to last, according to many experts. The challenge for pension funds is the medium-term impact on profits and solvency.
Common statistics reveal that one dollar out of six created in the world is linked to the real-estate sector. The sector is traditionally subjected to strong regulations relating to standards, aesthetic and energy constraints, securitization of transactions, guarantees, subsidies and tax incentives.
Average house prices in the UK have increased by a yearly rate of 6.2 percent in the year to January 2017 (up from 5.7 percent in the year to December 2016), continuing the strong growth seen since the end of 2013. However, this still remains below the average annual house-price growth seen in 2016 of 7.4 percent.