Inside magazine Issue 18 Part 02 - From a regulatory perspective

Size: px

Start display at page:

Download "Inside magazine Issue 18 Part 02 - From a regulatory perspective"

Georgia McCarthy
5 years ago
Views:

2 Stirring up the perfect Partner & Corporate Finance Deloitte Erika Bourguet Director & Corporate Finance Deloitte Esther Bauer & Corporate Finance Deloitte Analyst & Corporate Finance Deloitte recipes and make strategic choices regarding the future of their the majority of banks to review their menu, introducing a new

3 menu with a new value proposition banks with a private banking department. set themselves apart from the In this changing environment, banks are MiFID II enters into force, we observe that the majority of banks have decided on a services, reviewing the range of services that they provide to customers and overview of private banks in Luxembourg, Services 1 Execution only Advisory Discretionary portfolio management 2 Premium Fee structure 3 Ticket All-in Performance

4 Advisory 3 portfolio management investment. investment strategy from the bank experts Advisory 3 portfolio management Premium of transactions requested initiative of transactions requested initiative through a direct access to trading room Less active management by RM ongoing contact with dedicated reporting advisor Dedicated investment advisor management

3. 1 2 fees 3 Ticket fees generally include the administration fees and custody fees Ticket fees do not include transaction fees fees generally include the administration fees and custody fees fees

5 fees 3 Ticket fees generally include the administration fees and custody fees Ticket fees do not include transaction fees fees generally include the administration fees and custody fees fees do not include transaction fees generally administration fees, custody fees, transaction fees, and advisory or discretionary management fees Performance fees are generally but with a performance fee that good performance transaction amount and generally, depending on the transaction the transaction amount generally, depending on generally, depending on the a performance fee added in case In summary, the new bank menu has the following key features: Novelty is shaking up the menu.

6 Only one actor provides premium execution only services 13 They are mainly available for execution only and here are 2 Ticket Only one actor has an entry threshold for the standard 1 1 Ticket Premium models are predominant for advisory 12 All-In 10 Premium 6 All-In an all-in structure for premium advisory, only "real" all-in model, while management and custody fees come on top of allin management fees) entry threshold. Eleven 11 All-In 8 All-In 2 Perf. 3 1 Perf. Premium

7 1 N Strategy Turnover rate % % % Advisory % 6 Premium Advisory % % % % High management and turnover.

8 The extent to which strategic positioning between banks fragmented regarding the degree to which Some actors seem to have carried out are pitching prices too high, and thereby among banks, with the cheapest actor per year and the most expensive actor year.

9 Amount of fees paid per year in EUR 2 Lower range Mid range Upper range 6,030 4,856 5,348 5,369 1,130 2, ,700 2,769 1,569 1,200 3,269 1,469 1,800 3, ,600 3, ,000 3,450 3,463 1,350 1,363 2,100 2,100 3, ,700 4, , ,040 1,388 3,960 1,469 3,900 4,900 Actor 1 Actor 2 Actor 4 Actor 5 Actor 6 Actor 7 Actor 8 Actor 9 Actor 10 Actor 11 Actor 12 If we consider the extremes, it is interesting to note that both actors are private banks desire: charging a high security, administration, and service fee, which is prohibitive to banks

10 0.49 percent to 0.59 percent.

WE PROTECT YOUR INVESTMENTS

MIFID 2 WE PROTECT YOUR INVESTMENTS MiFID 2 Brochure 2 Introduction 5 Information on services 6 Client classification 10 Profiling 11 Investment tests 14 Executing your orders 17 Continuing obligations