How Psychology Affects Your Investingand What To Do About It
Europe’s Markets in Financial Instruments Directive – Mifid II – will go live on Wednesday. MiFID obligations to clients will be extended to any client opening a Financial Market, Wealth or Private Banking account with Standard Chartered London or an entity based in Europe. Some requirement will also extend to client based outside of the European Economic Area, where they have an EU nexus. These obligations include but are not limited to extra client on-boarding documentation checks, new disclosures to clients on charges for transactions and services provided, further evidence of best execution of client orders, greater duty of care based on client’s requests.
Brexit could lead to a number of wider economic changes, for example, sterling FX movements and capital flight, the tax consequences of which would need to be considered. By way of example if, as some have predicted, sterling were to depreciate immediately after a Leave” vote, unhedged non-sterling loan assets held by banks could appreciate in sterling terms. For accounts prepared in sterling, this could give rise to FX gains which would often be taxable. These changes could be particularly dramatic for assets that are marked to market.
Business dictionaries often have a definition for the generic term of global financial crisis”, which is described as an event similar to the one that occurred in 2008, when concerns about the future stability of world financial markets begin to mount, and the fact of the concerns causes people to act in ways to safeguard their investments, which in turn leads to increased and ever more genuine concerns for the viability of the financial markets, and the institutions that comprise them.
We hope that you will find the articles of interest and value as the 3 January deadline approaches but they can, by definition, only be a high-level summary of the very detailed analysis that ATEB has undertaken on the ‘final’ MiFID II Policy Statement and related papers. The articles are biased towards ‘typical’ ATEB clients and our full analysis will be shared with ATEB clients as part of our ongoing service arrangements.
Anyone who suffers from a low risk tolerance may find it extremely hard to make a decision to buy. I am sure you’ve heard of people who just can’t make the decision to buy. They have the funds, they say they are keen to buy, they look at every house that falls within their price range, but at the end of the day they just can’t go to contract. Why? It is because their fear is stopping them. They find one excuse after another to not purchase.