Has Ring-Fencing Caused an Irreparable Separation in the Coalition?

The full report by the Independent Commission on Banking (ICB), which was published on September 12th, recommended a separation of retail and investment banking; this meant that if there was ever an economic crisis caused by the losses incurred by investment bankers, the accounts of millions of ordinary customers would be protected. The ICB was set up to ensure that the state never again bails out a failing bank.

Ideological divisions

Originally, the Liberal Democrats called for a complete separation of retail and investment banking; this would inevitably mean the break-up of the big British banks. Chancellor George Osborn, supported by the Prime minister, prefers the subsidised model known as ring-fencing, regulations put in place protecting the retail side from investment losses but would not lead to the break-up of the banks. This, obviously, is the banks’ preferred option.

Although the Lib Dems have acquiesced and are now supporting the ring-fencing proposal, they would like it put in place immediately, writing it into the Financial Services Bill which is presently before Parliament. Mr Osborne and Mr Cameron are recommending that the regulations ease through incrementally over the next few years, something the banks have been lobbying for. Their view is that with what’s been happening in the Eurozone, bank regulation could cause economic growth to falter. Angela Knight, chief executive of The British Bankers’ Association called this week for changes in the industry to be delayed until the economic recovery is underway; imposing the measures on lenders risked denting confidence and cutting the supply of credit to the economy.

Don’t panic

At a time when the banks are reaping around £10 billion per year from the taxpayer, Business Secretary Vince Cable, in an interview with The Times, accused the banks of using the economic crisis in Europe as a bargaining chip to force a delay of any kind of reform of the financial sector, and in particular investment banking; the Business Secretary said, “It is disingenuous in the extreme to use the current context to argue against reform. Banks are in a way trying to create a panic around something which they know has got to happen. We can’t have big global banks with balance sheets bigger than British GDP underwritten by the taxpayer; this can’t go on and it has got to be dealt with.”

The fear for British banks is that too much regulation will stifle economic growth and restrictions on earnings will drive top investment bankers out of Europe to pastures new in the US or Asian banks, with Wall Street on a recruitment drive for the first time since 2008. Yet there is no fear of likely candidates being put off investment banking jobs as finance is still attractive for those wanting to earn big rewards.

IFA Opportunities at Home and Abroad

What is an Independent Financial Advisor?

Purely Banking has gained a reputation as the UK’s top jobs board for careers in the banking and financial sector. Purely Banking should be your first stop if you are new to the financial jobs market or you are looking for a change of career. With over 1,000 live jobs in banking and finance, our site has many opportunities available for Independent Financial Advisors, but what is an Independent Financial Advisor? What is the difference between an IFA and the financial advisors you would find at your bank? What opportunities exist for Independent Financial Advisors abroad?

Unsurprisingly, an Independent Financial Advisor, or IFA, offers independent financial advice; they are able to give unbiased advice and recommendations on a range of products available across the financial market because they are not actually employed by the provider of the financial product, whereas an advisor at your high street bank will offer advice based solely on that bank’s products, thus offering fewer options.

The three main types of financial advisor are: The tied advisor is working for just one institution; the multi-tied advisor offers products from a selection of the market and works on a commission basis; the independent financial advisor will usually work for a fee from the customer.

The Independent Financial Advisor will offer advice and recommend products for loans and mortgages, investments, insurance, retirement plans and sometimes they will advise on tax and legal matters.

Visiting Purelybanking.co.uk will open up a number of opportunities for anyone wishing to become an Independent Financial Advisor, but it is not just in the UK where there is a need for sound financial advice for British citizens. 

Overseas Opportunities for IFAs

In a recent survey by YouGov for AXA Wealth, around one third of so-called “baby boomers” are planning to move house when they retire, many of those are looking overseas.

With millions of British citizens already living abroad and needing financial advice, plus the many thousands who will be joining them, there are a great number of opportunities for Independent Financial Advisors overseas.

Spain, France, the U.S. and Canada are favourites along with Australia and New Zealand, but more and more Brits are heading for the Middle East, especially the United Arab Emirates. A fellow British citizen who is expert in U.A.E. finance and tax laws can be invaluable to the expat living in, or moving to, one of the Emirates.

As AXA Wealth points out, there are several factors to be taken into consideration when moving abroad; for instance the European Court ruling that states that expat pensioners can expect entitlement to increases in the state pension in line with inflation if they have gone to live in a country that has reciprocal arrangements, pensioners need to discuss with their financial advisor how best to make their pension inflation-proof.

They need to consider whether there will be a need for capital or income. What if they return to the UK? This will make a difference to how they manage finances and tax expectations. AXA advises people moving abroad to: “Seek professional tax advice. Tax treaties with some countries could mean a risk of double taxation and a lower-than-expected income from a UK pension. Professional tax advice is a must when thinking about retiring overseas.”

Finally they should consider the legal implications of a move to a country with different property ownership laws concerning buying, selling and passing on property to family. It is imperative that they seek sound advice from an Independent Financial Advisor who knows the local law and customs.

Banking Technology Jobs: We’ve got an app for that!

Purely Banking is the first place you should look for Banking technology jobs.

We asked: is the job market within the banking industry changing in the face of new technological challenges? With the enormous strides forward in the use of technology by banks, could cash, the chequebook and even plastic be left behind? More and more banks are embracing technology in order to meet customer demands. From call centres to internet banking to mobile applications, banking technology will continue marching on.

Whether you believe the new technology is a driving force for change or an enabler for innovation, it seems every time a new way to conduct business is put in place, something more advanced appears. For example, banking on your home PC is so last decade, the demand now is for mobile banking applications for this iPhone and Android generation.

Even though there are 400 million internet users in the world, that figure is dwarfed by the 5 billion mobile users worldwide. According to Jiten Arora, a managing director in the Transaction Banking Division at Standard Chartered Bank, in Africa alone there are 20 mobile connections for every internet connection.

Banking Technology to Cash-In Notes and Coins?

David Urbano, Head of Mobile at the Spanish bank La Caixa, speaking at the Mobile Technology in Financial Services Summit in London on June 22^nd, described his bank’s six month long Mobile Contactless Payment scheme last year in Sitges, Spain, in partnership with Visa and Telefonica.

It involved nearly the entire number of shops in the town, around 500 businesses, with NFC (near field communication) enabled phones given to 1,500 customers. The customers could purchase goods worth less than €20 by holding the phone against a Visa payWave reader. More expensive purchases required the use of a PIN. The results of the project were even more encouraging than expected: it was found that 90% of customers took advantage of the technology spending €31 on average with 80% of retailers processing mobile transactions. 60% of transactions were under €20, with 35% under €6. There was a reported 30% increase in Visa transactions and a 23% rise in billing from consumers, pointing to demand being driven up by the scheme.

The project was deemed so successful it has been rolled out in the Balearics to 150,000 customers and 5,000 retailers.

Urbano said: “…perhaps mobiles could be a substitute for cash transactions in the future Almost all customers say the new service is very quick and easy to use. They think it’s more secure than a credit card, because you don’t have to give the card to the merchant; and you realise straight away if you lose your mobile, but not necessarily if you lose your card.”

What this means for the banking jobs market.

If technology, such as the use of NFC, is expanded to all mobile subscribers, then the use of cash, cheques and even plastic credit and debit cards could very soon become a thing of the past.

With customers having less time in their daily schedule to visit the high street banks, the banking industry could move away from the high street altogether; this will obviously mean job losses for the retail sector but will open up more opportunities for the sort of technological professionals needed to keep ahead of, or at least abreast of, constant innovation.

Banking Jobs - Is It All Doom and Gloom?

Purely Banking is a premier jobs board for the UK banking industry. With over 3,000 banking jobs in the UK being available, from retail banking jobs, banking IT jobs and investment banking jobs, the question we are asking here at Purelybanking.co.uk: is the outlook gloomy for careers in the UK banking industry?

The nightly news is full of dark portents for jobs in the banking industry. Bank of America, the biggest bank in the United States in terms of assets, is to cut its staffnumbers by up to 40,000, some reports suggest. They are pointing to global uncertainty in the financial sector and a problem loan portfolio of around $1 trillion. The bank is also trying to put their house in order to comply with the terms of the Volcker Rule.

This significant downsizing of banking jobs coincides with several banks around the world looking to similarly cut their workforce; the 150 year old Swiss institution UBS, along with HSBC and RBS are laying off around 60,000 staff between them.

Here at home, there was a month-on-month drop in recruitment for the financial sector in the City of London of 10%, for the period of June to July 2011. That’s 18% down on last year. The number of new professionals entering the banking jobs market is also massively down by 44% from June, 14% down from the same time last year. This is not just happening in London, similar patterns are emerging in financial institutions across the globe. The big banks are concentrating on only recruiting the very best and retaining and promoting from within.

Improvement Ahead

The banks are obviously concerned over the financial turmoil we have witnessed recently but shouldn’t be too eager to lighten staff numbers. Things will improve despite what the media would have us believe. The major players in the big financial houses and treasury ministers won’t allow the whole house of cards to come tumbling down. The sort of brinkmanship we saw in the US, between Obama and the Tea Party Republicans, was played out as high drama but in the end it was farcical; we don’t believe that they would bring down the world’s most influential economy just to score political points.

The Volcker Rule, intended as a measure to restrict own capital investment by banks and thus prevent a repeat of 2008, is so watered down it’s almost a publicity stunt to boost Obama’s waning popularity. Following considerable campaign donations by the likes of JP Morgan Chase and Goldman Sachs; Treasury Secretary Tim Geithner, former chief economist Larry Summers, and senior adviser Valerie Jarrett were always unlikely to turn their backs on such influential campaign backers. In London, as long as George Osborne has the keys to 11 Downing Street, he will be a friend of the banks and despite political rhetoric, he will do all he can to avoid the full impact of recommended regulation.

The economy will recover; we have no doubts about that, as long as the major players don’t panic. Obviously the levels of recruitment into the financial sector will improve, along with the economy. The Banks, that have been shedding jobs, will then have the expense of recruitment and training whereas the cannier institutions will be, right now, picking up the best of the recently redundant and the best of those new to the banking jobs market.

SSAS Administrator - London - London, West End

SSAS Administrator - London - London, West End

Job Description

Fantastic benefits and overall package
SSAS Account Support/ SSAS Administrator
A top end nationwide financial services practice based in the west end of London require an experienced SSAS administrator to join their busy and successful team.
Summary of Job Purpose
Provide a wide range of administration services for a portfolio of SSAS schemes and contribute towards project work within the department
Provide administration services to an existing portfolio of SSAS arrangements. This will include ongoing administration services as well as the set-up of new arrangements and transfer in of existing arrangements. Deliver support to SSAS consultants.
Business Impact
To provide administration to the in-house SSAS schemes for which this client charge fees.
The good performance will ensure that a high level of service is provided and HM Revenue and Custom rules are adhered to. This in turn will be evidenced by a continuation of administration fees and minimal complaints.
Planning & Reporting
Regular deadlines must be met, some of which are set centrally, and some of which are set by the nature of the work on the portfolio of SSAS schemes, e.g. HM Revenue and Customs deadlines.
External Relationships
Maintain good relationships with clients, external advisers, accountants, solicitors, investment providers, banks and others as required.

PurelyBanking.co.uk on page one of Google......

We are proud to announce that due to our hard work and continued commitment to our site development, SEO and Social Media publicity that we have now reached page 1 of Google for the following search phrases:

Banking Careers
Jobs in Banks
Banking IT Jobs
Commodities Jobs
Retails Banking Jobs
Trader Jobs
Quant Analytics Jobs

We are still working hard to push to get to page one for the phrases:

Banking Jobs
Jobs in Banking

Last month we achieved huge success by way of receiving 80,000+ visitors and over 220,000 page views. This month we are pushing hard to increase these figures ten fold which will put us in good shape to become the UK's most popular job board for Banking and Finance professionals.

Fast becoming the Job Board of choice....

PurelyBanking.co.uk is fast becoming the job board of choice for banking and finance professionals to find their next career move.

With recent news exposure to the banking industry and the bad results for investment profits, banks are confirming they will be making cuts to help their balance sheets in ways of reducing the head counts.

However this is not the trend we are seeing, over the last couple of months we have seen the number of permanent vacancies increase especially in the Retail Banking sector and it is encouraging to see new suitors enter the fray.

Our main focus is to attract talent across the whole of the banking sector and make our job board a universal place for all within the sector to find their ideal jobs. We have seen our database grow at a fast rate, maybe due to threats of job cuts which has encouraged candidates to job hunt, however the level of jobs is certainly higher then that of new registrations.

Our monthly traffic is now in excess of 80,000 unique visits per month and over 200,000 page views. We are constantly investing in new ways to attract talent, with social media and blogs as well as using local and national job aggregators to offer our clients a wider range and varieties of ways for them to post jobs in many different locations.