According to the Panama Papers, banks set up 15,600 offshore companies. HSBC alone set up more than 2,300. HSBC is the bank that nearly lost its US licence a few years ago when it was discovered that one of its clients was one of the most murderous and wealthiest drugs barons in Mexico. It would appear that they didn’t learn from their past mistakes and that the lure of wealth and huge profits made them forget their moral, ethical and legal obligations.
But the Panama Papers could be just the tip of the iceberg – let’s not pretend for a minute that there was anything unusual about Mossack Fonseca, because there was not. This is just one of a host of law firms in tax havens doing remarkably similar things. The need is for the FCA to demand that banks put on record all their connections with secrecy jurisdiction lawyers, accountants etc.
This could all lead to hefty fines for the banks, on top of the fines they have already had for fixing the FX markets, gold prices, Libor – the list goes on and on. Plus, hopefully it will help ensure investment banks are a lot more transparent on what they are doing and with whom in the future.
With this in mind, be cautious as to where you place your money as some banks may struggle to survive.
If you want to know what your options are, I am here to help you find the right solution to make your money work for you in the most tax-efficient way possible. You can find out more about our financial management services here and get in touch with me directly by filling in an enquiry form.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Now that September is here, the summer is definitely drawing to a close for another year. For those of us living in the UK, we no doubt have a dark, cold, and almost certainly, wet autumn and winter to look forward to. While this summer may have been better than some years – 2017 saw the country blessed with bursts of intense heat, including the hottest August Bank Holiday weekend on record – the warm sunshine was only fleeting.
On Thursday the Bank of England (BOE) rate committee met to discuss interest rates, and, even though inflation is growing, yet again they have decided to leave the base rate at 0.25%. They obviously feel this is the best option as they assess the extent of any consumer slowdown and while they continue to play the waiting game regarding how the EU Brexit divorce negotiations pan out. The BOE seems to be playing a deliberate wait and see game, and with economic news continuing to be negative in the last few weeks, it now seems likely that the base rate could stay at this level until at least 2019.