Offshore providers accused
of encouraging poor advice
by Daniel JuDge
of AES International, said systems to prevent poor
there was “substantial evi- advice on their products.”
Offshore life companies dence of widespread poor Instone believes that
are encouraging unscru- practice” by international the UK Chancellor may
pulous practices among advisers, which they have investigate how offshore
OPINION
financial advisers by fail- been able to get away with subsidiaries of UK coming
to sufficiently vet those because providers often panies operate, with a
who distributes their prod- give distribution deals to view to cracking down on
ucts, a member of the unregulated brokers.
poor practices. Examples
International Adviser inter- Instone said: “Isle of of international practices
mediary panel has warned. Man and Channel Island that fall below UK stand-
Sam Instone, director providers piggy back on ards, according to Instone, Formula One, Abu Dhabi
the trusted brand of their include double-digit hidden investors’ purchase of
parent company, and on commissions being paid to Manchester City football
the idea that the UK is advisers and IFAs selling club and the glitz and
a well-regulated jurisdic- unsuitable products.
glamour of Dubai may
tion with high standards of He added: “The stand- grab the headlines, but
investor protection.
ard excuse from the off- the Middle Eastern finan-
“But in the absence of a shore provider is that they cial services industry could
legal requirement to coher- have no control over the perhaps offer one of the
ently distribute their prod- advisory process. But the most exciting development
ucts, a minority of these fact that providers choose opportunities in the region
providers fail to adopt the to distribute their products over the medium term.
instone: suspects widespread basic tenets of treating cus- through financial ‘cowboys’ Demand for Middle East
poor practice among advisers tomers fairly, and lack the perpetuates this problem.” and North Africa investments
has risen on the
back of the region’s rapidly
growing economy, as
well as a low correlation
between its equity markets
and those of developed
countries.
The oil-rich countries
What is better about where expats live
of the Gulf Cooperation
Weather Standard Quality Safer Slower Food Council (GCC) are enjoy-
of living of life pace
ing a period of particularly
australia 87% 80% 73% 47% 47% 33% strong economic growth,
with an increase of 7.1%
France 75% 50% 75% 75% 37.5% 75%
expected this year accord-
new Zealand 62.5% 62.5% 62.5% 62.5% 50% 50%
ing to the International
Spain 92% 69% 69% 85% 85% 38% Monetary Fund.
Canada 25% 62.5% 50% 62.5% 37.5% 12.5%
This growth is being
uae 60% 60% 60% 60% 10% 50% aided by government
policies designed to take
uSa 59% 27% 41% 14% 14% 18%
advantage of oil-driven
surpluses. The aim is to
advantages of the so-called they missed their fami- invest in projects that
‘expat lifestyle’ (27%), the lies and that one in five create sustainable growth,
pleasures of mixing with struggled with language with planned investment
local people (26%) and of difficulties.
close to $2trn.
being able to live in a more Perhaps even more sur- Importantly, Gulf sov-
social society (19%).
prisingly – especially to ereign wealth funds have
But there are some anyone who has spent any begun to invest in the
downsides to moving time in the UK during the domestic market, which
abroad, ALIL said, noting past 12 months – 4% of has encouraged economic
that just over half (or 51%) expats told ALIL they miss diversification and helped
of expats interviewed said the UK’s weather.
to create new jobs.
It may not come as news to
many, but better weather is
the main reason UK expats
say they prefer living
abroad, according to a new
poll conducted by Alliance
& Leicester International.
The survey by the Isle of
Man-based offshore bank,
revealed that 57% of expats
said a warmer climate was
among the reasons they
preferred their new home.
Almost as many, 56%,
cited a better quality of
life, while 53% said they
enjoyed a higher standard
of living, and 49% said the
crime rate is lower.
Other reasons those surveyed
gave for preferring
the expat life included the
slower pace of life (cited by
36%); higher income (30%);
better food (28%), the
48
Poll of expats cites warmer climate as
key factor in decision to live overseas
Source: alil
INTERNATIONAL ADVISER [www.international-adviser.com] DEcEmbER 2008
www.international-adviser.com
James Tothill,
director, international
partnerships at
New Star Asset
Management considers
growing opportunities
in the Middle East
Demand for investment in
GCC countries on the rise
The UAE finance ministry
has shown its willingness
to protect the region’s
financial system, guaranteeing
bank accounts for
three years and providing
a aed50bn ($13.6bn) credit
facility. While the region
has not been immune from
the global credit crisis,
with effects particularly
apparent in the housing
“
I have been
travelling to the region
for seven years and
the ambition and
sheer scale of its
projects never ceases
to amaze me
sector, the primary reason
for the lack of liquidity was
the sudden exit of foreign
investment flows.
I have been travelling to
the region for seven years
and the ambition and sheer
scale of its projects never
ceases to amaze me.
While investors around
the world took a pause
amid the ongoing financial
turmoil, the GCC remained
firmly resolute, with Dubai
state-owned developer
Nakheel announcing plans
to build a kilometre-high
tower, coming fast on the
heels of the Burj Dubai,
which, even though incomplete,
is already the world’s
tallest building.
“
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