General News

Alliance Trust Savings to Change Charges

Alliance Trust Savings, one of the more popular investment "platforms" for retail investors, is to raise some of its charges, while reducing others, effective from the 1st February 2017. On-line trading charges will reduce to as low as £7.99 per transaction (if you qualify for the maximum loyalty discount - or £9.99 for no loyalty discount). But postal or telephone trading charges will be increased substantially, although these will be offset by the introduction of a loyalty discount on those also so ...

Shareholder Rights Directive Agreed – But It’s Still Defective

There has been agreement within the EU on the final form of the Shareholder Rights Directive. What follows is the press release issued by Better Finance (a body that represents individual investors across the EU and of which ShareSoc is a Member). PRESS RELEASE PRESIDENCY AND PARLIAMENT AGREE ON REVIEW OF SHAREHOLDERS RIGHTS DIRECTIVE: LIMITED IMPROVEMENTS FOR SHAREHOLDERS 14 December 2016 - On 9 December 2016 the EU presidency and the EU Parliament agreed on the final version of the new Shareholders ...

FCA Consultation on Changes to FSCS Scheme Compensation

The Financial Services Compensation Scheme (FSCS) pays out if you have lost money as a result of an authorised financial services firm going bust or otherwise being unable to pay compensation for various failings - for example a bank or stockbroker. The scheme is funded by a levy on services firms. The Financial Conduct Authority (FCA) is currently undertaking a public consultation on changes to the scheme. At present there are limits to the protection FSCS provides which vary by financial product. ...

Companies House About Face

According to a Commons statement issued by the BEIS Government Department, Companies House has decided not to remove company records after six years as previously proposed (and even before a formal consultation took place). ShareSoc did write to Companies House objecting and Private Eye did a good job of publicising the issue. Retaining Companies House records is important if one wants to see the track record of company directors and the companies with which they were involved. So this is at ...

FCA Proposes to Clamp Down on CFDs

The Financial Conduct Authority (FCA) is proposing to clamp down on CFDs (contracts for difference) and similar financial products such as binary bets. CFDs are complex financial products that have historically been used by sophisticated traders. But they have been growing rapidly in usage by small retail "investors" and the FCA reports that 82% of them lose money based on a review of such accounts. CFDs are a way of acquiring an interest in a listed company without paying stamp duty. It ...

Chancellors Autumn Statement – How Does It Affect Investors?

The Chancellors Autumn Statement yesterday was effectively a cold shower for those who might be positive about the economy. Government debt is going to be allowed to rise so...

FCA Study of Asset Management – Interesting Interim Results

The Financial Conduct Authority (FCA) has published an interim report on its Asset Management Market Study. Some of the results are not that surprising, but others are. For example, it reports that around half of retail investors were not aware that they were paying fund charges. Needless to point out perhaps that can be linked to another conclusion. Namely that there is weak price competition. How can investors be expected to compare prices when they are not even aware of the charges? Indeed ...

Trump Victory – What’s the Impact for Investors?

With Donald Trump being elected President of the USA, what is the impact for investors? Will he create "high anxiety" as the unexpected head of that great democracy in the same way as the Brexit vote has in the UK? In other words, uncertainty about the future which tends to spook markets. But readers should bear in mind that the President has limited powers (much less than a UK Prime Minister). There are numerous checks and balances in the US constitution. Indeed ...

FRC Lab Report on Business Model Disclosure

Do you ever have difficulty understanding how a company really makes its money? If so it's worth noting that the Financial Reporting Council (FRC) have recently published a report on the work of their "Lab" into Business Model Reporting which may be of interest. ShareSoc participated in the work of this Lab where various stakeholders discussed what improvements were necessary. To quote from the FRC's press release, the Lab found: Business model information is fundamental to investors’ analysis and understanding of a company ...

WH Ireland Stop Offering Personal Crest Accounts

I have been advised that stockbroker W.H. Ireland are to stop offering Personal Crest Accounts. Existing clients using such accounts will have to move into a nominee account, or transfer to another broker which I can imagine a number doing. As ShareSoc Members have been told repeatedly, there are great advantages in terms of legal security and in retaining your shareholder rights by using such accounts rather than pooled nominee accounts offered by most brokers. Your name is on the share ...