The average Singaporean family produces 1.2 offspring, or in other words is not replacing itself according to a report in today's Straits Times.
Amid high inflation, low interest rates and a booming economy, Singapore has been getting tough on immigration. The ministry of manpower has been encouraging the hiring of Singaporeans and making it tough to hire expatriates, especially those who are not qualified to degree level.
The report indicates between 20 and 25,000 foreign employees need to be attracted to the country each year.
With its low taxation and high living standard Singapore is an attractive workplace for many.
Mark Paine
Meyado
Tuesday, April 24, 2012
Friday, April 6, 2012
Fee based advice in Singapore
Is this truly going to be helpful to the consumer?
For our target client, the answer is yes. There is a 'but', inevitably. This is the requirement for a fundamental change in the shopping habits of investors.
In the past clients have been able to obtain recommendations from any number of advisers, completely free of charge. They can then, on balance, make a decision to go with the recommendation they like best, or the adviser they feel most comfortable with.
With a fee based approach most firms will offer a free initial consultation, usually lasting 30 minutes or so. After this, time will be billed. This is a revolutionary change for investors used to having fees hidden away in commissions.
The common perception is that products will be cheaper using this approach. This is a double edged sword, cheaper does not necessarily, or indeed usually, mean better. Further, indemnified commissions are paid up front based on a percentage of monies invested. Ongoing fees will rely on a percentage of the assets managed which would increase over time and may in the long run cost more.
From the perspective of the adviser there is a clear view of the way the industry should develop to provide value to investors and facilitate lasting relationships on a win win basis. At this stage I am not sure the average consumer is quite ready for that and there needs to be a fundamental change of attitude toward investing.
Mark Paine
Meyado
Www.meyado.com.sg
For our target client, the answer is yes. There is a 'but', inevitably. This is the requirement for a fundamental change in the shopping habits of investors.
In the past clients have been able to obtain recommendations from any number of advisers, completely free of charge. They can then, on balance, make a decision to go with the recommendation they like best, or the adviser they feel most comfortable with.
With a fee based approach most firms will offer a free initial consultation, usually lasting 30 minutes or so. After this, time will be billed. This is a revolutionary change for investors used to having fees hidden away in commissions.
The common perception is that products will be cheaper using this approach. This is a double edged sword, cheaper does not necessarily, or indeed usually, mean better. Further, indemnified commissions are paid up front based on a percentage of monies invested. Ongoing fees will rely on a percentage of the assets managed which would increase over time and may in the long run cost more.
From the perspective of the adviser there is a clear view of the way the industry should develop to provide value to investors and facilitate lasting relationships on a win win basis. At this stage I am not sure the average consumer is quite ready for that and there needs to be a fundamental change of attitude toward investing.
Mark Paine
Meyado
Www.meyado.com.sg
Thursday, March 29, 2012
MAS Examinations for all advisers
In line with the MAS's efforts to continue the improvement in regulation of advisers in Singapore, all advisers are required to take an additional two examinations, being M8a (Collective investments) and M9a (Insurance).
Additionally the MAS are set to increase the minimum education level for advisers working in firms in Singapore.
All Meyado advisers in Singapore hold degrees, and many hold higher level qualifications, such as MBA's.
Mark Paine
Meyado
www.meyado.com.sg
Additionally the MAS are set to increase the minimum education level for advisers working in firms in Singapore.
All Meyado advisers in Singapore hold degrees, and many hold higher level qualifications, such as MBA's.
Mark Paine
Meyado
www.meyado.com.sg
Tuesday, March 27, 2012
MAS to Review Financial Services in Singapore
The MAS announced its intention to review financial services in Singapore, making special mention of commissions and layering of commissions on insurance products.
The review is welcome and is the first step toward creating a fee based model in Singapore.
An awful lot of consultation and research now needs to take place, but this is the biggest shake up in Singapore Financial Services since the introduction of the Financial Advisers Act.
Mark Paine
Meyado
www.meyado.com.sg
The review is welcome and is the first step toward creating a fee based model in Singapore.
An awful lot of consultation and research now needs to take place, but this is the biggest shake up in Singapore Financial Services since the introduction of the Financial Advisers Act.
Mark Paine
Meyado
www.meyado.com.sg
Thursday, March 22, 2012
UK Budget Whiplash
So it seems the budget in the UK, as ever, has gone down like a lead balloon. I can't imagine Osborne envisaged the Daily Mail running the Granny Tax story front page two days running.
Truth of it is, looking at it from outside of the country, more needs to be done to keep higher earners in the UK and not force them out with a 50% higher rate tax. Percentage revenues may be higher, but there will be less of them staying so GBP revenue will fall. Whilst I don't see a stream of expats wanting to get back to the UK as higher rate tax is 'only' 45% it will tip the scales for a few.
QROPS clarification is probably a good thing. At least if the government spends more time looking at it there will be a greater understanding and more transparency forced into schemes.
Personally I would have liked to have seen some easing on petrol pricing to further help businesses get going again, but the reduction in corporation tax will be a big help.
Mark Paine
Meyado
www.meyado.com.sg
Truth of it is, looking at it from outside of the country, more needs to be done to keep higher earners in the UK and not force them out with a 50% higher rate tax. Percentage revenues may be higher, but there will be less of them staying so GBP revenue will fall. Whilst I don't see a stream of expats wanting to get back to the UK as higher rate tax is 'only' 45% it will tip the scales for a few.
QROPS clarification is probably a good thing. At least if the government spends more time looking at it there will be a greater understanding and more transparency forced into schemes.
Personally I would have liked to have seen some easing on petrol pricing to further help businesses get going again, but the reduction in corporation tax will be a big help.
Mark Paine
Meyado
www.meyado.com.sg
Wednesday, March 21, 2012
UK Budget 2012
The affect of the UK budget on my clients is in the main relevant to UK domiciles intending to return to the UK, although there is one alteration to non-domicile residents.
Life insurance taxation and avoidance of tax through offshore vehicles seems to bear the main brunt of the changes. Offshore Trusts are also on the watch list.
The Government is obviously unhappy with the volume of QROPS transfers and is seeking to ensure there is no unfair taxation treatment on these, and also reducing avoidance potential with a 10 year reporting requirement.
IHT has gone down to 36%
Mark Paine
Meyado
www.meyado.com.sg
Life insurance taxation and avoidance of tax through offshore vehicles seems to bear the main brunt of the changes. Offshore Trusts are also on the watch list.
The Government is obviously unhappy with the volume of QROPS transfers and is seeking to ensure there is no unfair taxation treatment on these, and also reducing avoidance potential with a 10 year reporting requirement.
IHT has gone down to 36%
Mark Paine
Meyado
www.meyado.com.sg
Tuesday, March 20, 2012
Volksworld Show
The Volksworld show takes place at Sandowne Park this weekend. Sadly I won't be there this year, but if you have the opportunity and have a vaugue interest in cars it's a brilliant weekend.
Check it out here
http://www.volksworldshow.com/
Mark Paine
Meyado
www.meyado.com.sg
Check it out here
http://www.volksworldshow.com/
Mark Paine
Meyado
www.meyado.com.sg
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