Alpha Global Wealth

Why Do Independent Financial Advisers Charge Initial Fees?

Financial advisers often face questions about their initial fees. It's important to understand that these fees are crucial for several reasons:

- Regulation Costs: Complying with financial regulations isn't optional. The costs associated with staying compliant, including licensing fees, are significant.

- Professional Indemnity Insurance: Protecting clients and advisers with PI insurance is a necessary expense.

- Operational Costs: Running a business involves standard costs like office rent, supplies, and utilities. These are essential for maintaining a professional and efficient environment.

- Staff Costs: Employing qualified staff to assist with various tasks ensures top-notch service and support.

- Education and Certification: Continuous education is vital. Achieving and maintaining Chartered status involves substantial costs but ensures the highest level of advice and service.

Clients should absolutely question fees. Some firms may charge too much, making it essential to assess value for money. Shop around, but remember that top advice comes with a cost.

The culture around financial advice needs to change. Understanding the necessity of these fees can help shift perceptions. Charging initial fees isn't about profit; it's about ensuring that high-quality, compliant, and professional advice can continue to be offered.

Switzerland has been named the second most attractive location in Europe for fintech stakeholders. The country is recognized for its conducive business environment and the attractiveness of the local market for fintech players.

Released on June 27 by Lithuanian fintech company ConnectPay, the index provides an overview of the fintech landscape across Europe. It evaluates key markets in the region and their potential for fintech businesses, government institutions, investors, and other stakeholders, assessing market potential through three dimensions:

- “Fintech attractiveness”: This includes metrics such as the presence of fintech-related regulation, funding per capita, workforce share, and the number of fintech licenses.
- “Business attractiveness”: This spans several parameters such as startup friendliness, ease of doing business, and taxation competitiveness.
- “Market attractiveness”: Metrics include population engagement with digital and financial services, economic health, and relevant regulations.

Among the 32 European countries studied, Switzerland ranks second, recognized for its favorable business landscape (ranked 3rd) and market potential (ranked 3rd). The country also boasts one of the region’s largest numbers of startup unicorns.

Switzerland has made notable efforts to create a conducive business environment for fintech companies. In 2023, it launched the Swiss Financial Innovation Desk (FIND) aimed at fostering financial innovation by supporting collaboration between the public and private sectors. The government has also introduced regulatory changes to provide greater legal clarity and encourage innovation. These include the Fintech license introduced in 2019, the regulatory sandbox introduced in 2017, and the pioneering “DLT Act,” a legislation covering blockchain technology, digital assets, and tokenization that came into force in 2021.

Despite its high rankings in business and market dimensions, Switzerland ranks 8th in Europe for “fintech attractiveness.” A 2024 study by UBS, Credit Suisse, and the Swiss ICT Investor Club (SICTIC) indicates that Swiss startups face significant funding challenges and limited international recognition. Moreover, with a population of just nine million, the local market is too small for startups to thrive, compelling young Swiss tech ventures to seek international expansion early in their development.

Access to well-educated workers is another key challenge faced by Swiss startups, with 46% of the founders polled by Credit Suisse finding it hard to fill vacancies with suitable candidates. Labor market challenges are more pronounced for startups in the growth and expansion phase, with 55% struggling to recruit qualified employees, compared to 39% for startups in the pre-seed and seed stages.

On 1 January 2024, the revised Insurance Supervision Act (ISA) and the revised Insurance Supervision Ordinance (ISO) entered into force. The new regulation increases the requirements for insurance intermediation and introduces new criteria for supervision by FINMA. From 1 January 2024, only insurance intermediaries who meet these increased requirements will be authorized to operate in the Swiss insurance market. 📅

These are the most important obligations.

As the 2024 UK General Election unfolds today, the financial landscape for investors hinges on its outcome. Recent polls indicate Labour leading by a substantial 20 points, sparking speculation about potential market and financial impacts.

Market Stability
A Labour super-majority would likely maintain market stability, enabling smooth implementation of their agenda amid minimal opposition. This scenario is widely anticipated and generally welcomed by investors. However, any outcome short of Labour dominance could introduce uncertainty, unsettling markets.

Economic Policies
Labour's focus under Rachel Reeves prioritizes long-term economic growth over immediate consumer spending boosts. This strategy aims to avoid market disruptions akin to past fiscal policies. Their manifesto promises stability, avoiding abrupt fiscal shifts post-election.

Potential Market Turbulence
Long-term challenges could lead to economic turbulence and reduced tax revenues, complicating Labour's ability to implement drastic spending cuts. Reeves proposes differentiated borrowing rules, supporting public-private partnerships beyond current commitments.

Trade Relations and Brexit Impact
Labour's stance on closer EU ties and reduced regulatory divergence could bolster UK valuations, previously strained by Brexit uncertainties. This approach aligns with bond investors' interests amid ongoing interest rate speculations.

Coalition Government Risks
A coalition or minority government scenario might delay Labour's agenda, heightening uncertainty and potentially affecting investment decisions that rely on policy stability.

Tax Policies and Savings
Labour pledges no tax hikes for working individuals, yet plans to remove VAT exemptions for private schools and revise non-dom status, affecting certain taxpayers. Capital Gains Tax rules remain unchanged for now.

Pensions and Social Care
Labour supports maintaining the Triple Lock on state pensions and reforming retirement savings for sustainable incomes. Their proposal for a National Care Service aims at standardized care and prioritizing home-based services.

Homebuying Support
Labour proposes a permanent mortgage guarantee scheme for first-time buyers, potentially aiding 80,000 individuals over five years. They also suggest increasing Stamp Duty for non-UK residents to fund policy initiatives.

Strategic Approach
Labour plans one major fiscal event annually to provide certainty and long-term planning, in contrast to prior administrations. This strategy aims to stabilize economic planning processes.

Investors are advised to maintain a diversified portfolio across sectors and asset classes, considering potential impacts of Labour's policies on market stability, economic caution, and targeted tax adjustments. Regardless of election outcomes, a focus on long-term financial goals and seeking professional advice remains crucial.

Hiring an insurance intermediary licensed by FINMA provides a range of guarantees and benefits that protect clients and ensure professional, transparent, and ethical service, along with strict adherence to regulatory requirements that further enhance the reliability and accountability of the intermediaries. ✅

Alpha Global Wealth is now officially licensed by FINMA as an Insurance Intermediary! 🏆

Also, our CEO, James Barnes, obtained the license as an individual. 🏅

The Swiss Financial Market Supervisory Authority is the regulatory body responsible for overseeing Switzerland's financial markets. This includes ensuring the stability of the financial system, protecting investors, creditors, and policyholders, and maintaining the reputation of the Swiss financial center.

From 1 January 2024, only insurance intermediaries who meet increased requirements are authorised to operate in the Swiss insurance market.

These achievements strengthen our commitment to excellence, integrity, and providing top-notch services to our clients. With these licenses, we're all set to serve you better, ensuring trust and reliability in every interaction.

Thank you to all our clients for being part of our journey. Your continuous support always pushes us to strive for more.

Prime Minister Rishi Sunak made the announcement of a July 4th election. What might be in the manifestos, and what changes may come with a victory for either party? There are a number of key areas to watch:

Pensions
Labour and the Conservatives both promise to maintain the triple lock, ensuring the state pension rises with inflation, wage growth, or 2.5%, whichever is highest. However, this may lead to plans to raise the state pension age in the next parliament.
The Lifetime Allowance, which limits your total pension amount, was abolished by the Conservatives, but Labour plans to reinstate it if elected, though details are unclear.
The election timing is problematic for the automatic enrollment extension to workplace pensions, which lowers the qualifying age from 22 to 18. This legislation is pending and may be delayed by the election, leaving its future uncertain.

Savings
A Bank of England rate cut was expected soon, but the election may delay it until September. This benefits savers, as banks are likely to pause rate cuts, keeping variable rates around 5% longer. It's a good time to lock in fixed-rate deals before potential rate changes.

Mortgages
A delayed rate cut impacts those with variable rate mortgages negatively. Those hoping for a rate cut in March will be disappointed with the potential wait until September. Fixed-rate mortgage deals are also unlikely to drop soon.

Tax
No major tax announcements yet, but expect pledges. Tax cuts, especially for council and income tax, are popular, but public service funding is also a concern. Discussions will likely focus on long-term tax directions rather than immediate changes.

Housing
Housing will be a significant issue for both parties, with potential policy announcements on building, planning, and first-time buyer incentives. There is also hope for revisiting the Lifetime ISA limits to better match house prices.

Investments
Elections create uncertainty, often affecting investor confidence and decision-making. Market stability depends on the election result; a decisive win may settle markets, while a close result could cause fluctuations. Watch for possible ISA announcements aimed at simplifying the system, with Labour advocating simplification and the Conservatives reviewing the UK ISA. Any changes should aim to make ISAs more user-friendly.

Currently, half of Swiss employees retire early, and only 23% work beyond retirement age. Demographic trends show fewer young people entering the labor market, and the groups that could replace the older workers are limited in size. By 2030, this could result in a labor market deficit of up to half a million workers.

Migration could theoretically address this shortfall, but political reasons make it unfeasible in the near future. Automation is another potential solution, but its impact is uncertain and may not cover all necessary jobs.

There is, however, a pool of 230,000 potential laborers within the Swiss economy, including the unemployed, under-employed, and the over-50s. These individuals have valuable skills and experience and are eager to work. Thirty percent of those forced into early retirement would prefer to continue working. Additionally, 580,000 people aged 50-64 in the labor force are willing to work beyond the state pension age.

Despite this, a significant gap remains due to the “age guillotine” mindset, where both employees and employers assume retirement is a strict cutoff, hindering further training and career development for older workers. This mindset, along with financial disincentives, discourages older individuals from continuing to work. Many potential employees would accept lower pay but are deterred by continued contributions to the pension insurance scheme that offers them no additional benefit. Employers also face increased pension contributions for older workers, making it unattractive to retain them.

A cultural shift within management is necessary. Employers must support older workers by offering opportunities, building cross-generational teams, and adapting working models and job descriptions.

Early retirement is often seen as a sign of prosperity, but to encourage continued employment without financial motives, the intrinsic value of work needs to be emphasized.

The state also needs to create a more attractive environment by making the retirement age flexible and removing financial disincentives for resuming work post-retirement. While significant changes in retirement age are unlikely soon, discussing alternative models is crucial. Younger workers' involvement in these discussions is vital, as their support could drive reforms.

New forms of work must also be developed by the private sector. Flexible retirement options, like a retirement “corridor” between ages 60 and 70, could help overcome the “age guillotine” mindset, encouraging flexibility and continued employment.
Some pioneering companies are already offering innovative employment models, but many still underestimate the labor market dynamics. Recognizing and addressing the impending labor shortage before it worsens is crucial. More pioneers with constructive solutions are needed to navigate this challenge effectively.

New York remains the world's foremost financial center, ahead of London and Singapore. Switzerland features prominently in the top 20 with Geneva and Zurich, according to the 35th edition of the Global Financial Centres Index (GFCI) published in London.

Europe hosts only six of the world's top 20 financial centers, including two Swiss cities, Geneva and Zurich. The highest-ranked EU financial center is Frankfurt, positioned at 13th, while another Swiss city, Lugano, is gaining recognition, having climbed twelve places to 35th.

The Global Financial Centres Index is the most authoritative benchmark for comparing the competitiveness of the world's leading financial centers. It is published by Z/Yen Partners in collaboration with the China Development Institute. For the past 16 years, the GFCI has released biannual reports, tracking the progress of top financial centers globally.

The index evaluates 121 cities across five continents, assessing them on five areas of competitiveness: Business Environment, Human Capital, Infrastructure, Financial Sector Development, and Reputation.

From the 'school of kings' to 'the world's most expensive school,' Switzerland's premier private schools are among the most prestigious and costly globally. The country consistently excels in the OECD PISA global education assessments and topped the 2024 Henley & Partners' global 'Opportunity Index,' which ranks countries based on the accessibility of quality private education and the ease with which high-net-worth individuals can gain citizenship.

Ten Swiss schools have earned Top Flight status in the Spear's Schools Index 2024, recognizing the world's 100 leading private schools. These institutions boast exceptional facilities – ski chalets, lakeside campuses, and fully equipped private theatres – and provide students with a well-rounded education that leverages the country's multiculturalism and natural beauty.

They are our role models, our protectors, and our guides. Today, we honor their sacrifices, their hard work, and the endless love they provide. Happy Father's Day!

London continues to prove Brexit doubters wrong by leading Europe in attractiveness to investors. Britain's share of foreign direct investment (FDI) has reached its highest level in a decade, according to a survey by Ernst & Young.

The accounting giant's latest Attractiveness Survey for Financial Services shows Britain attracted 108 financial services projects in 2023, up from 76 in 2022. Britain not only maintained but significantly extended its lead as the most attractive European financial services market last year. Despite challenging macroeconomic conditions and geopolitical uncertainty, the stability of the UK's financial services sector has ensured strong foreign investor confidence.

London secured the highest number of new projects (69) in 2023, followed by Paris (18), Frankfurt (12), Madrid (10), Amsterdam (eight), and Lisbon (eight).

However, survey data on investor sentiment found that Paris is London’s biggest rival in Europe after New York. Investors ranked the French capital above London as the most attractive European city for future financial investment over the next three years.

The United States was the largest source of financial services investment into Europe, with projects increasing by 15 percent, from 79 in 2022 to 91 in 2023. This represents the highest proportion of US-backed projects in the last 10 years, accounting for 28 percent of all financial projects in Europe.

Britain was the leading recipient of US investment, recording an 81 percent increase, from 21 projects in 2022 to 38 in 2023. France secured second place with 15 projects from the US, up from 13 in 2022. While FDI in tech and business services sectors fell across Europe last year, it continued to rise in financial services amid challenging macroeconomic conditions and geopolitical uncertainty.

Foreign investors remain drawn to the trusted capabilities, expertise, and skills found in Europe’s major financial centers. They value the region’s broad business ecosystem, which connects them to leading advisory, legal, and tech services.

Our forward-looking sentiment research indicates that investors not only remain confident in Europe’s financial centers today but also plan to increase investment in the region over the next three years, targeting both established and emerging financial markets.

Labor Day is a time to recognize and celebrate the dedication, ingenuity, and resilience of workers across all fields. Their efforts shape our world and drive progress forward. ✊

Over the past 15 years, global peacefulness has declined by more than 3%, as reported by the 2022 Global Peace Index. The resurgence of old and new conflicts, exacerbated by the pandemic and exacerbated political and cultural polarization, are identified as primary factors behind this decline.

Peaceful societies reap numerous benefits, including greater income growth, stronger currencies, and increased foreign investment. Additionally, they enjoy political stability and foster a greater sense of happiness among their citizens.
The economic ramifications of violence on the global economy are substantial, amounting to $17.5 trillion in purchasing-power parity (PPP) terms, equivalent to 12.9% of total global GDP. This translates to a reduction of $2,200 in economic output for each person on the planet.

Key insights from the 2023 Global Peace Index, the premier gauge of global peace, highlight these trends. Compiled by the international think-tank Institute for Economics and Peace (IEP), it encompasses 163 independent states and territories, collectively home to 99.7% of the world’s population. The ranking, based on 23 indicators categorized into three criteria (societal safety and security, extent of ongoing domestic and international conflict, and degree of militarization), reveals that 84 countries have witnessed improvement while 79 have experienced deterioration.

Among the rankings, Switzerland holds the 10th position. Renowned for its exceptionally high levels of safety and security within society and minimal ongoing domestic or international conflicts, Switzerland's ranking is tempered by its unexpected degree of militarization. Despite boasting a relatively small population of approximately 8.7 million, Switzerland maintains a significant military presence, with around 150,000 active and reserve army personnel. Additionally, Switzerland, along with other peaceful nations like Canada, Singapore, Norway, and the Netherlands, stands among the world’s top weapons exporters per capita.

Switzerland stands as a beacon of stability and prosperity, embracing linguistic and religious diversity. However, challenges remain, particularly in achieving gender equality, as women earn approximately one-fifth less than men, representing a setback from 2000 levels. Despite these challenges, Switzerland ranks fourth in the United Nations’ Happiness Report and surpasses the OECD average in subjective well-being, income, health, education, and environmental quality.

See the complete ranking here:https://www.visionofhumanity.org/wp-content/uploads/2023/06/GPI-2023-Web.pdf

The wealth management industry is undergoing a profound transformation driven by rapid technological advancement. Today, wealth management providers are playing a pivotal role in the financial well-being of an increasingly diverse range of customers, transcending age and income groups.

Embracing the digital revolution and reshaping the financial services landscape has become imperative for staying competitive.

A new mantra is emerging: a digital-first, customer-centric approach. The digital revolution, coupled with generational wealth transfer, has revolutionized investment strategies. Investors now demand seamless, efficient, and transparent services that offer personalized, data-driven insights and instant access to financial information.
Across various regions globally, technology-driven investment firms offering dollar-denominated investments are experiencing significant growth. Traditional wealth managers are adapting to market trends by embracing private equity, digital wealth (WealthTech), and cryptocurrencies to remain competitive. Leveraging data analytics powered by Artificial Intelligence, these firms gain valuable insights into client behaviors, enabling the development of tailored investment strategies. Digitalized wealth management platforms are expanding the global reach of wealth managers, enhancing operational efficiency, and improving the overall client experience.

A study conducted by KPMG in 2021 emphasizes the necessity of a robust digital presence for financial services brands to remain competitive. Today's most successful wealth managers are those at the forefront of digital innovation. However, the industry must address challenges related to data utilization, privacy, and security as digital interactions with wealth managers become more prevalent. Implementing modern security measures is crucial to safeguarding client information and maintaining trust.

A new wave of tech-enabled organizations is emerging, operating across diverse asset classes and prioritizing customer needs. Embracing the digital revolution is essential for wealth management firms to thrive in today's financial landscape worldwide. The digital future of wealth management is upon us, and those who seize the opportunity will lead the way toward financial prosperity on a global scale.

Alpha Digital Connect
Online access to your financial world. Industry leading, innovative financial management software.

Aggregated investment valuations and analysis 24 hours a day 7 days a week.

Your money at your fingertips, on any device, anywhere.

https://www.alphaglobalwealth.com/digital-connect/ -digital-connect

The European Council authorised the Commission to negotiate, on behalf of the EU, a broad package of measures with Switzerland as the basis for future EU-Switzerland relations. It also approved the corresponding directives for the negotiation.

The aim of the negotiation is to modernise and deepen bilateral relations between the EU and Switzerland, to ensure fair competition between EU and Swiss companies operating within the internal market, and to guarantee the protection of the rights of EU citizens in Switzerland, including preventing discrimination between citizens of different member states. The mandate also addresses Switzerland’s concerns by allowing limited exceptions to alignment with EU rules in the areas of free movement of persons, the posting of workers, and rail and road transport.

The EU and Switzerland have a close relationship, based on shared values and strong economic ties. The negotiating mandate we have approved today will allow us to develop our partnership and achieve its full potential. I am looking forward to swift progress in the negotiations.

The key elements of the package include:
- Institutional provisions to be included in existing and future agreements with Switzerland related to the internal market, providing for dynamic alignment with the EU acquis, uniform interpretation and application, and dispute resolution.
- State aid provisions to be included in existing and future agreements related to the internal market.
- An agreement allowing for Switzerland’s participation in EU programmes, including Horizon Europe.
- An agreement on Switzerland's permanent financial contribution to social and economic cohesion in the EU as a counterpart to its participation in the internal market.
- Relaunch of negotiations on agreements on electricity, food safety and health.
- Negotiations on the different elements of the package will be conducted in parallel.

Next steps
On the basis of the mandate, the Commission will now be able to engage in formal negotiations with Switzerland on the broad package of measures. The negotiations are expected to start in the coming days.

✨🌷🐰Wishing you and your family a very happy and blessed Easter 🐣 🌻 ✨May this season fill you with peace, joy, and hope 🌸

Switzerland has emerged as the premier destination globally for families aiming to cultivate multi-generational prosperity and secure optimal career trajectories, as per a recent index by the renowned citizenship advisory firm, Henley & Partners. The picturesque Alpine nation presents unparalleled opportunities, rendering it an irresistible option for relocation and access to lucrative income streams.

The index, which scrutinizes 27 countries across various metrics including education, earning potential, career progression, quality of life, economic mobility, and employment opportunities, unequivocally asserts Switzerland's dominance in facilitating familial wealth accumulation and career success. With a mere 2% unemployment rate, Switzerland boasts near-full employment, coupled with the presence of seven of the world's top 250 universities, solidifying its status as the preeminent choice for families aspiring towards a prosperous future.

Henley & Partners' research underscores the profound impact of possessing appropriate residency and citizenship privileges in augmenting prospects for successive generations. Tess Wilkinson, Director of Henley & Partners Education, elucidates, "The comparative analysis within the Henley Opportunity Index underscores the criticality of selecting the right nation to ensure sustained multi-generational affluence. Global income differentials are largely influenced by geographical location and workplace environment."

The index serves as an invaluable compass for investors, entrepreneurs, and affluent families seeking to pinpoint optimal locales for advancing their careers and maximizing earning potentials. It underscores the imperative of amalgamating world-class education with corresponding residency or citizenship rights to access thriving employment markets, thereby guaranteeing enduring prosperity.