This means that Brevan Howard three traders are located in Geneva and six more are expected to move this year. This move can be thought as a result of tax regulations insecurity in London, whereas at the same time Switzerland seems more attractive. Number of firms moving on Swiss market has increased recently and there are more businesses giving their employers an option to relocate to Switzerland.

Source: Financial Times (Harriet Agnew 29/06/2010)

Bain Capital now focuses on the Asian market. Similarly Carlyle Group raised its third Asian fund at $2.5bilion, while Permira moved already Veronica Eng, senior executive to chair Asian operations.

Financial News claims that private equity funds reached a peak of $80bn in 2008 on the Asian market.

Source: Financial News (Toby Lewis, 26 April 2010)

According to specialists, approximately 70% of all buyers are overseas clients or UK based non-doms. The proportions is the highest ever recorded.

Source: Financial News (Tara Loader Wilkinson, 26 April 2010)

Recently big investors such as Baring Asset Management, Anthony Bolton, Ashmore, East Capital have already invested in Chinese equities or are going to do so in near future, according to Financial News. However, there are factors which indicate that investors should slow down and consider their movements twice before making final step. FN discusses four of them: Firstly, China hasn’t applied capital gains tax to date, but professionals are fearful that it is on the verge of doing so. Secondly, The US pressure on the Chinese government to abandon the Chinese currency peg to American dollar. Another factor would be the fact that Chinese central bankers may increase the rates to cool down the economy, experts predict. And lastly, property investors have benefited from the boom on Chinese real estate markets but it is thought that the trend has reached its fever pitch. Fund managers are now avoiding Chinese real estate stocks, but if the bubble bursts, the wider markets would suffer, according to Financial News.

Source: Financial News (Phil Craig 14 Apr 2010)

A member of European Parliament, Jean-Paul Gauzes mentioned that this idea would be a basis to find a compromise on one of the most controversial parts of hedge funds legislation. The Parliament’s economic committee is going to vote on 27 April and Gauzes is trying to negotiate a deal with lawmakers, according to Dow Jones Newswires.

European or US hedge fund managers often manage their funds in other countries like Cayman Islands, where tax law within national borders is rather casual. When EU lawmakers tried to bring back offshore funds to follow EU tax rules, it met large opposition especially from UK fund managers.

Discussed Gauzes’s option would require offshore funds managers to follow EU rules before they accept investments from Europe. In addition investors wouldn’t be allowed investing funds in countries which don’t have adequate financial regulations, law to fight terrorism and money laundering.

The scheme distinguishes three levels of classification: first with the strongest rules and enforcement will be allowed to accept investment from EU. Second level would apply to countries lacking of some aspects of financial regulations. This would mean that these countries would be able to receive EU-wide authorization to accept investments. Third and final level of classification would consist of countries with the worst financial regulations and rules. These countries would be placed on ‘a black list’ and no investments from EU would be allowed.

Source: Dow Jones Newswire, by Matthew Dalton (13 April 2010)

Source: Financial News (Phil Craig 12 Apr 2010)

Michael Dobson, CEO of Schroders said that the bank is hiring more people to a private bank sector. These are frontline relationship bankers and there are 9 more in the UK, 3 in Italy and 3 in Switzerland. Total number of new bankers, including Singapore and Channel Island is 75.

Following Schroders Private Bank plans to grow by up to 8% in 2010, the hiring process is the first step and preparation to hit competitors.

According to Financial News, boutique private banks were attracting talents from larger rivals, especially when they lost trust and credibility during the financial crisis. Similarly it happened with 3 private bankers from Morgan Stanley’s wealth management business who have left and found careers in UK bank Rothschild Private Banking and Trust.

Source: Financial News (William Hutchings and Tara Loader Wilkinson, 8 March 2010)

However these counties that aren’t in favour of the directive will have to gather 90 votes to do so.  The biggest enemy of the directive is UK with 29 votes. Financial News claims that objectors have 111 votes which is enough to prevent the directive to take place.

According to Financial News, strongly in favour of the directive are:

Germany (29 votes)
France (29)
Spain (27)
Denmark (7)

Probably in favour of the directive: 142 votes

Italy (29)
Poland (27)
Romania (14)
Greece (12)
Portugal (12)
Belgium (12)
Bulgaria (10)
Finland (7)
Lithuania (7)
Latvia (7)
Estonia (4)
Luxembourg (4)

Total in favour: 234 votes

Strongly against directive: 90 votes

UK (29)
Czech Republic (12)
Hungary (12)
Sweden (10)
Austria (10)
Slovakia (7)
Ireland (7)
Malta (3)

Probably against directive: 21 votes

Netherlands (13)
Slovenia (4)
Cyprus (4)

Total against: 111 votes

Source: Financial News (William Hutchings, 12 Mar 2010)

Chief Operating Officer of Allianz Global Investors, Marna Whittington, said it was a way of dealing with crises. Instead of large redundancies the firm decided to freeze salary levels. The company, however, had to make redundant nearly 200 of the staff.

In fact, Allianz Global Investors carried paying out bonuses to portfolio managers and sales people based on their personal performances but basic salaries stayed the same. According to Financial News all salaries above €100,000 were retained in 2009, whereas wages below that level had been increased of 2% to 3%. This year, the company is going to increase wages of the lower-salary staff and higher level staff will remain the same.

Source: Financial News (William Hutchings 08 March 2010)

The Financial News state, according to KPMG London is going to move to one of the most expensive financial sectors after introducing changes. The accountancy firm calculated tax and social security payments comparing figures from main financial centres and currently London is relatively competitive.

Ian Hopkinson, head of people services tax at KPMG, claims that those who earns significant bonuses, after 6 April London will become the most expensive financial centre. This has a negative effect and it made difficult to bring new talents to London, according to Bank of America Merrill Lynch. Similarly, City of London Corporation, state that this new tax regime will drive bankers and fund managers to work abroad.

According to Financial News, City Minister Paul Myners said: “The UK has been a world leader in banking for centuries. Competitiveness cannot be explained only by tax rates – you have to look at the full range of reasons it makes sense to do business in London, from our financial infrastructure, to our world-class professional services, highly educated population, quality of life, and geographical advantages.”

Source: Financial News (Matt Turner, 8 March 2010)