Investing Offshore can be a very attractive option for the discerning investor who would like to explore other markets, shield his or her investments from potential capital lawsuits, or grow them in a confidential, secure investment not governed by the rules and regulations of their home jurisdiction. Over a year ago I posted an article [...]
This is the UK government department, headed by the Chancellor of the Exchequer, which is responsible for managing the country’s public revenues. In recent years it hasn’t had the best of records (despite many ill-informed commentators promoting Gordon Brown as a “prudent” chancellor – HAH!!!) as can clearly be seen by anyone who looks at [...]
A Friendly Society is incorporated under the Friendly Societies Act 1974 or under the Friendly Societies Act 1992 or any subsequent act replacing or amending these acts. Friendly Societies are voluntary mutual organisations whose main purpose is to financially assist their members, or their members’ families, during sickness, unemployment or retirement and to provide life [...]
This refers to shares in a public company which are freely available for purchase or trade by the general public. Although a company may be designated a Public Limited Company unless it is listed on a recognised stock exchange its shares may not be in “free float” and even if it is publicly listed the [...]
One of the most common questions we receive asks for a definition of an open-end fund and a definition of a closed-end fund. An open-end fund is a collective investment scheme that can issue and redeem shares according to market demand. Therefore unlike a closed-end fund, where the number of shares in issue is fixed [...]
Beware the fraudulent activities of a share “bucket shop”. A Bucket Shop (sometimes called a “boiler room”) is a fraudulent brokerage firm that uses aggressive sales techniques, usually by telephone, to sell stock that the brokerage owns and wants to get rid of. The securities they sell are typically poor investment opportunities, and almost always [...]
Additional Voluntary Contributions (AVCs) are designed for people who are members of a company pension scheme but who want to increase the contributions they make in order to boost their retirement income. Average life expectancy is increasing so topping up a company pension with an AVC plan is a good way of helping fund the [...]
The Financial Services and Markets Act 2000 is the Act of Parliament of the United Kingdom that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking. This was the Act by which Gordon Brown removed responsibility for regulating the banking industry from the Bank of England, a decision that [...]
The FSA Handbook sets out all the FSA’s rules made under powers given to the FSA by the Financial Services and Markets Act as well as rules based on this and other Acts. It is legally binding. The Handbook is updated almost daily and anyone involved in the financial industry is well advised to check [...]
Many employers offer a pension scheme to their employees though because of various recent changes in how these have to be accounted for this is becoming less common outside of the “public sector”. If you are a member of an occupational pension scheme your retirement income will be based on the years of service and [...]
Back in April of this year Alistair Darling slipped a shock announcement in the small print of his Budget statement. I reported these in a previous post UK Budget Bombshell for Second Home Owners. You should read the earlier post for full details but basically Mr Darling announced that with effect from April 2010, the [...]
In the context of UK regulations a qualified investor (“QI”) is one who falls within the definition contained in Section 86(7) of the Financial Services and Markets Act (“FSMA”) and who is listed on the Qualified Investor Register (“QIR”) maintained by the Financial Services Authority (“FSA”). The Financial Services Authority maintains a register of QIs, [...]
One of the most common questions we receive asks for a definition of a closed-end fund and a definition of an open-end fund. A closed-end fund is an investment vehicle with a fixed number of issued shares, which are not normally redeemable for cash or securities until the fund liquidates. Because there are a fixed [...]
Established in 1990, the Alternative Investment Management Association (AIMA) is the only truly global hedge fund association. It represents all practitioners in the alternative investment management industry – including hedge fund managers, prime brokers, legal and accounting services and fund administrators. The association centres it activities on education, regulation, policy development and in the establishment [...]
An alternative investment is an investment product other than traditional investments such as stocks and shares, bonds or cash investments. The common features of alternative investments have been summarised as follows: Poor liquidity Difficulty in determining current market values Limited historical risk and return data Extensive investment analysis required Some common alternative investments are: real [...]
Private equity is the term which refers to money (capital) invested directly into private companies (those which are not listed on any stock exchange) by individual investors or funds. Private equity is often used to buy out public companies (those listed on stock exchanged) and delist them. Perhaps in a management buyout situation. Typically capital [...]
The simple definition of real estate is “ A piece of land, including the air above it and the ground below it, and any buildings or structures on it.” The legal definition, at least in those countries such as the which are or were part of the British Empire or Commonwealth (and thus whose legal [...]
The terms “liquidity” or “liquid market” or “liquid asset” refer to the ease – or otherwise – with which an investment or asset can be sold. A liquid asset can be sold quickly, with minimal loss of value and typically this could refer to a stock or share traded on a major market. The essential [...]
A shock announcement in the small print of this year’s budget has left thousands of UK farmers and second home owners reeling at the loss of tax breaks without which they may have to sell up. Not a good thing in a falling market. But it could benefit owners of foreign holiday property. Buried deep [...]
Accounting is viewed by most non accountants as a complicated and highly technical matter, and this is a view that is encouranged by the accountancy profession. But the truth is that it is based on a very simple principal which once understood allows business owners and managers to understand the financial state of their business without [...]
