Monsoon Capital Lists on AlphaMetrix

AlphaMetrix, the leading secure online marketplace for private investments, today announced that Monsoon Capital has listed its Monsoon Asia-Pacific Systematic Fund as a Transparent Fund.

The Monsoon Asia-Pacific Systematic Fund is now visible to the AlphaMetrix network. It will retain its existing structure and service providers while offering investors in-depth risk monitoring, state-of-the-art reporting, customized transparency and a thorough background investigation via AlphaMetrix.

“We are excited to list our Asia CTA fund on AlphaMetrix,” said Gautam Prakash, founder of Monsoon Capital. “We have long been impressed with AlphaMetrix and believe that listing our systematic trading managed futures fund on the Marketplace is an important step to increasing the transparency and risk reporting we can offer to our investors. We think AlphaMetrix will help shed a bright light within the industry and enable investors to better understand what they are buying in terms of alpha, risk-adjusted returns and portfolio diversification.”

"We share Monsoon Capital’s focus on transparency, which makes the firm an excellent partner for AlphaMetrix,” said Mikus Kins, Chief Product and Business Development Officer at AlphaMetrix. “We are thrilled to deliver all of the benefits of AlphaMetrix to Monsoon Asia-Pacific Systemic Fund’s investors, including cutting-edge fund performance tracking tools and value-added risk and research reports.”

UK: Government publishes White Paper on the Overseas Territories

First review of the Overseas Territories since 1999 focuses on security, success and sustainability.

The UK Government renews and strengthens Britain’s relationship with the Overseas Territories today with the publication of its White Paper, The Overseas Territories: Security, Success and Sustainability.

Foreign Secretary, William Hague said:

"Today’s White Paper is the first review of the Overseas Territories since 1999 and it demonstrates the importance the Coalition Government attaches to the Overseas Territories.

"As well as having a responsibility to ensure the security and good governance of the Territories, we want the Territories to be vibrant, flourishing communities that proudly retain aspects of their British identity.  

"We appreciate the remarkable diversity of the Territories, each with their own specific attributes, opportunities and challenges. This White Paper is designed to meet these challenges, to set out ways we can support the Territories and strengthen our engagement with them. It is another major milestone in our long and shared history, and I hope it will mark a new era of engagement between Britain and the Overseas Territories."

This White Paper focuses on three goals: strengthening engagement between the UK and the Territories; working with the Territories to strengthen good governance, public financial management and economic planning where this is necessary; and improving the quality and range of support available to the Territories.

The White Paper was developed across government departments and in consultation with the people and governments of the Territories. In the year in which Britain and the Territories celebrate the Diamond Jubilee of Her Majesty The Queen, it sends an important signal of long-term engagement.

The Overseas Territories are incredibly diverse; they include thousands of small islands, vast areas of ocean, but also, in Antarctica, land six times the size of the United Kingdom. They include one of the world’s richest communities, in Bermuda; and the most remote community, in Tristan da Cunha. They are internationally recognised for their exceptionally rich and varied natural environments. They are home to an estimated 90% of the biodiversity found within the UK and the Territories combined and include two of the world’s largest Marine Protected Areas.

The Guardian - Report - Mauritius: Treasured Island

In the mind’s eye Mauritius conjures images of an island paradise, with its endless stretches of white, sandy beaches, surrounded by the world’s third largest coral reef. Behind this idyllic picture, however, is an impressive economic success story fuelled by the innovative spirit of its people and government

UK - The Overseas Territories: Security, Success and Sustainability

The Government published on 28 June 2012 a White Paper setting out its overall approach to the Overseas Territories. The last White Paper on the Overseas Territories was in 1999.

The United Kingdom’s 14 Overseas Territories are an integral part of Britain’s life and history. Today they include one of the world’s richest communities (Bermuda) and the most remote community (Tristan da Cunha). They include thousands of small islands, vast areas of ocean, but also, in Antarctica, land six times the size of the United Kingdom.

The UK Government’s vision is for the Territories to be vibrant and flourishing communities, proudly retaining aspects of their British identity and generating wider opportunities for their people.

This White Paper sets out how we are working to realise our vision for the Territories. It contains links to papers that all UK Government Departments have written on how they are engaging with the Territories. The White Paper also celebrates the diversity, successes and opportunities in the Territories.

India: CBDT invites Comments/Suggestions on Draft GAAR Guidelines

The Central Board of Direct Taxes (CBDT), Ministry of Finance has invited comments/suggestions on the Draft Guidelines regarding implementation of General Anti Avoidance Rules (GAAR) in terms of Section 101 of The Income Tax Act, 1961.The Draft GAAR Guidelines were issued yesterday along with the relevant Annexures. 

The implementation of General Anti Avoidance Rules (GAAR) has been deferred by one year. GAAR will now be applicable w.e.f. 1.4.2013.The Government had set-up a Committee under the Chairmanship of Director General of Income Tax (International Taxation) to frame draft guidelines in terms of Section 101 of Income Tax Act, 1961. Draft guidelines have since been finalized together with the forms. Some illustrations have also been provided to clarify the GAAR provisions.

Appleby Mauritius Advises Royal Dutch Shell PLC on its US$1 bn Sale of Majority Shareholdings in African Businesses

Appleby Mauritius, advised Royal Dutch Shell PLC (“Shell”) in connection with the US$1 bn sale of the majority of its shareholdings in its downstream African businesses as part of a programme of sales of its non-core operations.

Under the terms of the deal, Vitol, the world’s largest oil trader, and Helios Investment Partners, an Africa-focused private equity group, will own 80 per cent of a new joint venture. The remaining 20 per cent will be controlled by Shell who will continue to operate the oil major’s existing oil products, distribution and retailing businesses in 14 African countries including Tunisia, Senegal, Ghana, Cap Verde, Madagascar, Kenya, Morocco, Egypt, Uganda, Guinea, Mali, Burkina Faso, Cote D’Ivoire and Mauritius, with the potential to add five more in the future.

As part of the overall restructuring of the Shell Group in the African region, Appleby also advised Shell Mauritius Limited, a subsidiary of Shell Overseas Holdings Limited and a listed company on the Stock Exchange of Mauritius (“SM”), in respect to the sale of 75% of SM issued share capital to Vivo Energy Holding, a newly created joint venture between the Vitol Group, Helios Investment Partners and Shell.

The Appleby team, led by partner Gilbert Noel and assisted by associate Ashley Oogorah, advised Shell on the listing rules of the Stock Exchange of Mauritius and other regulatory framework. Allen & Overy was the lead counsel on the global restructuring of Shell across Africa along with Shell’s in-house professional team.

Werksmans Attorneys - Private equity investments: SA headquarter company vs Mauritius GBC1 regime

In this publication, the South African headquarter company (HQ) regime, which gives effect to these incentives, is compared to the other popular, and competing, investment holding regime, namely the regime offered by Mauritius for Global Business Companies 1 (generally referred to as the GBC1 regime).

FSA: Barclays fined £59.5 million for significant failings in relation to LIBOR and EURIBOR

The Financial Services Authority (FSA) has today fined Barclays Bank Plc (Barclays) £59.5 million for misconduct relating to the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR). This is the largest fine ever imposed by the FSA.

Barclays’ breaches of the FSA’s requirements encompassed a number of issues, involved a significant number of employees and occurred over a number of years.  Barclays’ misconduct included:

• making submissions which formed part of the LIBOR and EURIBOR setting process that took into account requests from Barclays’ interest rate derivatives traders.  These traders were motivated by profit and sought to benefit Barclays’ trading positions;
• seeking to influence the EURIBOR submissions of other banks contributing to the rate setting process; and
• reducing its LIBOR submissions during the financial crisis as a result of senior management’s concerns over negative media comment.

In addition, Barclays failed to have adequate systems and controls in place relating to its LIBOR and EURIBOR submissions processes until June 2010 and failed to review its systems and controls at a number of appropriate points.

Barclays also failed to deal with issues relating to its LIBOR submissions when these were escalated to Barclays’ Investment Banking compliance function in 2007 and 2008. 

Tracey McDermott, acting director of enforcement and financial crime, said:

“Barclays’ misconduct was serious, widespread and extended over a number of years.  The integrity of benchmark reference rates such as LIBOR and EURIBOR is of fundamental importance to both UK and international financial markets.  Firms making submissions must not use those submissions as tools to promote their own interests.”

“Making submissions to try to benefit trading positions is wholly unacceptable.  This was possible because Barclays failed to ensure it had proper controls in place.  Barclays’ behaviour threatened the integrity of the rates with the risk of serious harm to other market participants.”

“The FSA continues to pursue a number of other significant cross-border investigations in this area and the action we have taken against Barclays should leave firms in no doubt about the serious consequences of this type of failure.” 

The BBA is currently undertaking a review of the way LIBOR is set and will publish its findings shortly.  The FSA, along with the other tripartite authorities, is working to support market-led reviews of existing arrangements, with the goal of ensuring such arrangements continue to command the confidence of all stakeholders. 

Barclays co-operated fully during the FSA’s investigation and agreed to settle at an early stage.  The firm qualified for a 30% discount under the FSA’s settlement discount scheme.  Without the discount the fine would have been £85 million.

This was a significant cross-border investigation and the FSA would like to thank the U.S. Commodity Futures Trading Commission (CFTC), the U.S. Department of Justice (DoJ) (together with the Federal Bureau of Investigation (FBI)) and the Securities and Exchange Commission (SEC) for their co-operation. 

The CFTC brought attempted manipulation and false reporting charges against Barclays for similar failings, which the bank agreed to settle.  The CFTC imposed a penalty of US$200 million.  In addition, as part of an agreement with the DOJ, Barclays admitted to its misconduct and agreed to pay a penalty of US$160 million.

Mauritius: Bharat Telecoms to launch island-wide fibre network and high-speed FTTH broadband

A joint venture between local and Indian investors, Bharat Telecom has set itself the ambitious target of connecting every home and office in Mauritius to a fibre network. It has been testing its technology in one community on the island and is due to launch soon. Russell Southwood spoke to one of its directors, Baljinder Sharma.

Mauritius: Bharat Telecoms to launch island-wide fibre network and high-speed FTTH broadband | balancingact-africa.com

EDHEC: Robust Assessment of Hedge Fund Performance through Nonparametric Discounting

This study, produced as part of the Newedge research chair on “Advanced Modelling for Alternative Investments,” Proposes a Robust New Method for Assessing Hedge Fund Performance.

This methodology is applied to various hedge fund indices as well as to individual hedge funds, considering a set of risk factors including equities, bonds, credit, currencies and commodities.

The research findings strongly suggest that what was incorrectly measured as hedge fund alpha in previous studies is actually some form of fair reward obtained by hedge fund managers from holding a set of relatively complex linear and non-linear exposures with respect to various risk factors. Often the reduction in performance comes from a small number of extreme events which are not captured well with the usual linear approach.

The findings also support the view that higher-moment equity risks capture a large part of the non-linear risk exposure of several hedge fund strategies. However, exposure to higher-moment risks for bond, interest rate or currency is essential for other strategies, in particular Emerging Markets. Finally, the authors illustrate with individual funds how a fund manager can measure the sensitivity of his portfolio of funds to shocks affecting risk factors, that is macro shocks, or to idiosyncratic shocks impacting a particular fund.

This new approach can be extended to evaluate hedge fund managers' performance conditionally to specific macroeconomic environments such as high or low interest-rate states, large or limited economic uncertainty, bull or bear markets, and liquid or illiquid markets, making the performance measurement more transparent to general economic conditions. 

E-Commerce Is the Next Frontier in Global Expansion

Online shopping is changing how retailers develop their global expansion strategies. A.T. Kearney's E-Commerce Index reveals which developing markets hold the most potential for online growth.

Retailers are constantly seeking new paths to growth. As revenues plateau in developed markets, expansion into developing markets is a popular means for reaching new growth targets and boosting returns in overall portfolios. But choosing a developing market is more complex than looking through the traditional bricks-and-mortar lens to determine where to locate—it also requires looking through the online lens.

As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints.

As e-commerce sales skyrocket across the developing world, building an online presence is a low-risk way to test new markets or complement existing store footprints. Gaining maximum advantage from such strategies requires knowing a country's true e-commerce potential and its online market challenges.

A.T. Kearney's 2012 E-Commerce Index, the first in a series, examines the top 30 countries in our 2012 Global Retail Development Index™ (GRDI). Using 18 infrastructure, regulatory, and retail-specific variables, the Index ranks the top 10 countries by their e-commerce potential (see figure 1).¹ The findings provide a wealth of information for retailers use in developing successful global e-commerce strategies and identifying emerging market investment opportunities (see sidebar: About the Study).²

E-Commerce: A Ripe Growth Opportunity

Global e-commerce is thriving as infrastructure, laws, and consumer preferences evolve. Global e-commerce has grown 13 percent annually over the past five years (see figure 2).3 Retail expansion is increasingly occurring through online channels as a way to tap into growth markets, build brands, and learn about consumers while investing less capital than traditional formats. For example, American luxury retailer Neiman Marcus acquired partial ownership in a Chinese fashion website to test China's market, learn about Chinese consumers' likes and dislikes, and capitalize on the country's increasing demand for luxury goods. Neiman Marcus got all the information it needed without entering into expensive real estate contracts or trying to navigate the complexity of tier 2 and tier 3 cities. French luxury retailer Louis Vuitton Moet Hennessy (LVMH) used a similar strategy, acquiring Sack's, Brazil's leading online beauty retailer, to develop local recognition of its Sephora cosmetics line.

E-commerce is playing a vital role in multichannel retail strategies, which are new to many developing markets. In late 2011, U.K.-based Argos partnered with Chinese electronics manufacturer Haier to create a new multichannel operation in mainland China. Argos plans to open a showroom in Shanghai and take advantage of Haier's existing franchise network of 6,000 stores to serve as delivery points for online orders.

Pursuing international online expansion often means doing battle with domestic e-commerce players that already control a large portion of a market.

Pursuing international online expansion often means doing battle with domestic e-commerce players that already control a large portion of a market. Chilean retailers Falabella and Cencosud combined own nearly 40 percent of their home country's online retail market, and Brazilian retailers B2W and Magazine Luiza own 30 percent of the Brazil market—similar trends are occurring across Asia, Eastern Europe, and the Middle East. Competing against these domestic players requires understanding online consumers within each market and tailoring e-commerce operations accordingly.

Build It and They May Come

A country's prospects for online retail success are closely related to how many people use the Internet and how many are comfortable purchasing products online. The matrix shown in figure 3 compares these two factors for all 30 countries ranked in the 2012 GRDI. We've identified four types of online markets:

Infrastructure impediment. These markets lack the technological and logistical infrastructure for high-volume e-commerce. For example, most consumers in India, ranked 5th in the GRDI but unranked in the E-Commerce Index, lack the technology to connect to the Internet, and those who do have the technology still avoid e-commerce because of a poor infrastructure that prevents reliable delivery and returns. Succeeding in these markets may require collect-on-delivery (COD) payments to overcome constraints in the financial infrastructure and better communications with customers to help them understand delivery timeframes.

E-commerce inequality. Markets such as Mexico and Sri Lanka have low-to-moderate Internet penetration overall but have a wealthy class that uses the Internet extensively and regularly buys online. Adjusting the product mix, prices, and advertising will appeal to these high-income Web surfers. Having the flexibility to adjust products, prices, and ads for online buyers will become more important as low-income users become more accustomed to buying online.

Ready and willing. Five of the 10 countries ranked in our E-Commerce Index fall into the ready and willing category of markets because they have the full e-commerce package—the infrastructure to support high-volume e-commerce and users who are comfortable buying online. In these markets, it is important to thoroughly understand why customers buy online and to continually meet their expectations to ensure repeat purchases. Chile's Cencosud finds out what its online customers like and dislike by asking them to participate in an online post-purchase survey; participants are registered in a raffle for free gift cards after comments are posted.

Hesitant shoppers. Some markets have the technological infrastructure to support e-commerce, but poor in-country dynamics—such as logistics, digital laws, or cultural biases— that make Internet users wary of purchasing online. These markets require a combination of techniques to instill confidence in e-commerce, including in-store pickup, rebates for credit card transactions, online product promotions and value pricing, and 24-7 call centers. For example, Turkey's hepsiburada.com has overcome Turks' hesitancy to pay online by offering a pay-at-your-door option that allows customers to receive and inspect the product before paying for it with cash or card.

Top 10 Countries in the 2012 E-Commerce Index

The Index assesses the attractiveness of e-commerce in the 30 developing markets ranked in the 2012 GRDI. Following is a summary of the top 10.

1. China: leader of the pack. China's $23 billion online retail market, second only to the United States, places it atop the E-Commerce Index.⁴ With a 78 percent annual growth rate since 2006, its online retail market is expected to explode, reaching $81 billion over the next five years as the country's infrastructure improves and online purchasing behaviors evolve.

China has 513 million Internet users, the largest online population in the world, and 164 million online shoppers who are drawn in by lower online prices, promotions, and free shipping on transactions over a certain price. Chinese online buyers value the ability to read consumers' online comments and reviews of stores, products, and service quality. Consumer electronics and apparel are the two most popular categories among China's online shoppers. Apparel attracts more than half of all online shoppers (both men and women) in metropolitan areas, a higher percentage than in the United States. Beauty is also popular, as almost half of women online buyers in China's big cities purchase beauty products online.

Infrastructure challenges continue to stymie China's e-commerce potential; however, only 34 percent of citizens use the Internet, lower than other markets primarily because of a large rural population that is less likely to use the Internet. The quality of China's transportation infrastructure also varies outside of its metropolitan hubs, inhibiting deliveries. In tier 1 and tier 2 cities, online retail purchases are typically delivered by couriers, which are price-competitive with high-end express services offered by FedEx, UPS, DHL, and EMS.

With a 78 percent annual growth rate since 2006,China's online retail market is expected to explode, reaching $81 billion over the next five years.

Payment solutions such as Alipay are the most popular form of online payments and are frequently the first option offered by leading online retailers. COD exists but is less popular, and some retailers, such as U.S.-based amazon.com, cap the amount that can be paid via COD because of security concerns. Luxury goods sellers go even further. For example, Swiss-based Richemont has partnered with security companies such as Brinks to ensure delivery and payments, while others send two couriers to deliver high-priced items and to guarantee that funds are deposited correctly.

Local Chinese retailers, including Taobao, Paipai, and 360Buy dominate the online retail market. 360Buy, originally selling consumer electronics online, has expanded into clothes, food, cosmetics, and books. The company owns 16 percent of the market and is considered China's homegrown version of amazon.com. International retail leaders, including Carrefour, Tesco, and Wal-Mart are attempting to take online market share from the domestic players. Wal-Mart has a controlling stake in the Chinese e-commerce firm Yihaodian, allowing it access to the company's premium customer base and extensive logistics network. Other foreign retailers are close behind, with Spanish apparel retailer Zara and U.K. online luxury goods seller Net-A-Porter establishing an online presence.

2. Brazil: a not-so-distant second. Brazil has 80 million Internet users who spend $10.6 billion online per year, the largest total in Latin America, and are expected to spend $18.7 billion by 2017.

Brazil's strong and growing middle class shops online to get more "bang for the buck." These shoppers are price conscious, demand free shipping and interest-free payment terms, and frequent group-buying sites to look for the next big bargain: In 2011, 10 million Brazilians made more than 20 million transactions on Groupon-like websites. Appliances and consumer electronics are the most common products sold online. Online apparel sales remain marginal as fashion-savvy Brazilians still value the social experience of in-store shopping.

Local Brazilian retailers already have an online foothold, with B2W (owned by Lojas Americanas department stores) possessing 20 percent of the online retail market. Local electronics retailer Magazine Luiza is on a mission to increase its online presence by tapping into Latin America's largest social networking base. The company encourages consumers to open their own digital Luiza stores on Facebook and Orkut and sell products to friends and family. These social entrepreneurs are paid anywhere from 2.5 to 4.5 percent in commissions.

Although Brazil's e-commerce market is thriving, the country has issues with logistics and online payment security. To combat these, the Brazilian government has invested in air and shipping ports and is strengthening its digital commerce laws.

3. Russia: an online giant awakens. Russia has the largest online population in Europe (60 million users) and 15 million online shoppers. Russians also browse the Web regularly from their mobile phones—there are 1.8 mobile phones per person in the country. These market dynamics translate into a $9 billion online retail market, with growth projected to reach more than $16 billion by 2016.

To sustain online sales growth, Russia must address its poor financial and logistics infrastructure and consumers' lack of confidence in delivery. Russians primarily buy with cash, as only one in five households has a credit card. The country is also heavily reliant on rail for transporting goods, so products ordered online may take a week or longer for delivery to the outer provinces. As a result, 70 percent of Russia's e-commerce sales are concentrated in Moscow and St. Petersburg, and 20 percent are in second tier cities that have more than 1 million people.

Both domestic and foreign retailers are investing in e-commerce operations to position for future growth. Leading Russian grocer X5 Retail Group recently launched an e-commerce site, while French retailer Auchan plans to establish collection points for online orders. In April 2012, Spanish apparel chain Mango announced plans to continue its online expansion by selling through its own website and partner websites.

Russia's e-commerce market is hampered by poor digital consumer protection laws and active, regular censorship of digital content, so the key to growth is building trust with Russian consumers. This is most often done through promotions and customer service. Ozon, for example, operates a 24-7 call center to field inquiries and M.video offers a 5 percent discount for online credit card orders.

4. Chile: Latin America's hidden gem. Advanced technology and telecommunications infrastructure and an active base of online buyers have propelled Chile to a 27 percent e-commerce growth rate since 2006 (see figure 4). Seventy-one percent of Chilean Internet users shop online, highest among the 30 countries ranked in the GRDI. However, because of the relatively small size of Chile's online market—just $749 million in sales compared to Brazil's $10.6 billion— it is easy to overlook its vast potential.

Falabella and Cencosud combine for 39 percent online market share in Chile, butWal-Mart commands 20 percent and vows to become the country's largest online retailer within five years.

Chile's Internet users are not afraid to purchase online. The average Chilean household has four credit cards and spends $158 per year online, compared to $44 in the rest of Latin America. Over the next five years, Chile's online retail market is expected to double to $1.5 billion as more people shop online.

Chile's domestic retailers dominate the market, but international players are gaining traction. Falabella and Cencosud combined own 39 percent online market share, but Wal-Mart is fast on their heels commanding 20 percent of the market and vowing to become Chile's largest online retailer within five years. Falabella does not plan to sit back and wait. The retailer is investing large sums to improve the online buying experience and to build a ground-up e-commerce logistics network—including intelligent routing systems, online order tracking, and a strong reverse logistics system for returns.

5. Mexico: the next breakout star. Mexico is Latin America's second largest online retail market (after Brazil) with $1.2 billion in sales per year, and the fastest-growing Internet penetration rate in the world. As more Mexicans obtain Internet access, online sales are projected to nearly triple to $4.4 billion by 2016.

Despite its potential, a poor technological infrastructure hinders Mexico. The Internet penetration rate is 31 percent, with users primarily connecting at slow speeds to avoid paying for faster but higher-priced broadband connections. Still, Mexico offers some of the most unique e-commerce innovations, such as the BanWire system, which allows customers to purchase a product online, print a voucher, and pay for the product in person at a nearby convenience store.

International retailers are seeking to capitalize on Mexico's potential. The Gap offers international shipping to Mexico on its U.S. website; its long-term goal is to operate country-specific websites that fulfill e-commerce orders domestically. Wal-Mart's Superama chain allows customers to order products online and either pick them up (no charge) in the store two hours later or pay for home delivery within the hour.

The UAE serves as an e-commerce gateway to other oil-rich Middle Eastern markets with advanced technological infrastructures, strong retail sales, and a common Arabic language.

6. United Arab Emirates: gateway to the Middle East. The UAE boasts an advanced technological infrastructure, an active Internet user base, and strong retail development. The UAE's 76 percent personal computer household penetration rate is the highest of all ranked countries in the GRDI, and its 78 percent Internet penetration rate leads the Middle East. In addition, its retail sales per capita of $9,155 is on par with the United States and Sweden, which indicates that UAE residents have money to spend across retail channels.

While the current size of its online retail market ($227 million) is relatively small, the UAE serves as an e-commerce gateway to other oil-rich Middle Eastern markets with advanced technological infrastructures, high retail sales per capita, and a common Arabic language. Souq, a leading online retailer in the Middle East, has established websites in the UAE, Saudi Arabia, Jordan, and Kuwait as part of a regional strategy. International retailers, such as Carrefour and coffee brand Nespresso (a unit of Switzerland-based Nestle), are testing online sales in the UAE before expanding regionally. Carrefour's UAE website gives customers access to more than 3,000 items, some not sold in stores, with free delivery on purchases over a certain amount.

However, a few characteristics may hinder the UAE's e-commerce development. Credit card penetration is low among local residents (albeit high among expats), and bricks-and-mortar stores also offer free delivery as a customary service, diminishing the convenience of online shopping.

7. Malaysia: Asia's next e-commerce leader? Half of all households in Malaysia own a PC, and 56 percent of the population is connected to the Internet. Malaysians are relatively heavy users of credit cards (1.1 cards per household) and debit cards (5.6 per household), allowing for easier online shopping. Moreover, Malaysia's high-quality logistics infrastructure ensures that online retail purchases can be delivered in a timely manner. According to the World Economic Forum, the quality of Malaysia's transportation services is on par with the United States.

Malaysia's active online user base has embraced e-commerce. More than half of users shop online and rely on personal recommendations, search engines, and special Internet offers to make purchasing decisions. Today's online retail sales level of $250 million will double over the next five years. Some of the main challenges to e-commerce in Malaysia include cyber-security concerns and the need to touch and feel products before purchase.

Malaysia's online potential has drawn, among others, Germany's Rocket Internet GmbH, which designed and launched local versions of Zappos and Amazon, and Zalora, an online fashion retailer from Singapore that began e-commerce operations in Malaysia in February 2011 and offers 48-hour delivery, COD delivery payment, and 30-day free returns on all orders.

8. Uruguay: an urban stronghold. Uruguay has an active online user base in urban areas and a 48 percent Internet penetration rate—highest in Latin America. Uruguayans are proving ready to shop online—70 percent of Internet users make online purchases, second among GRDI countries only to Chile. A highly urban population also helps improve the reliability of deliveries. To date, Uruguay's online retail market—$43 million—is small, but sales are projected to double by 2016.

9. Turkey: a quiet success. Turkey features a strong logistical infrastructure that allows consumers to make online purchases and receive their products within one or two days. In fact, most online purchases made within 350 miles of Istanbul arrive within 24 hours. The country also boasts an engaged base of Internet users who spend an average of 30 hours online per month; half of all users make purchases online. The Turkish government has also aided the e-commerce boom by enacting digital laws that protect online consumers and oversee e-commerce companies.

Turkey's $1.3 billion online market has already drawn interest from many retailers and investors. For example, Turkey-based Dogan Online, which operates hepsiburada.com, has recently purchased evmanya.com (a Turkish home decorating site), and is in talks with as many as four other online retailers. In 2011, Naspers, the South African media conglomerate, acquired 70 percent of Markafoni, one of Turkey's largest private online shopping sites.

10. Oman: small but important. Oman has an advanced technological infrastructure to support e-commerce and an active Internet user base. Half of Omani households own a PC and 62 percent of the population (roughly 1.7 million people) are connected to the Internet. Omani citizens own, on average, more than one phone, including smart devices that connect to the Internet. Still, Oman's online market remains small at $111 million.

As more Omanis are buying consumer electronics online, the bricks-and-mortar retailers are noticing. Domestic retailer OHI Electronics launched e-commerce operations in 2011 as part of a multichannel strategy, and its website is notable for offering customers a unique and interactive shopping experience.

The Path to Profits

Success in online retail requires patience, persistence, and an ability to adapt to local markets. There are four main success factors for entering new markets either online or as part of a multichannel strategy.

Develop a customized value proposition. As in bricks-and-mortar retail, e-commerce requires adaptation to local markets. A one-size-fits-all approach will not work because online consumers in different countries exhibit unique behaviors and make Internet purchases for different reasons. Success requires adjusting websites, payment methods, shipping options, and business models according to the needs of each market.

Manage the customer experience. The convenience of ordering products at the click of a button and having them delivered to your home is a main benefit of online shopping. Thus, managing the customer experience from online browsing and product purchase to delivery and return is critical. In markets where logistics are a challenge, constant communications with customers about shipping timelines can help manage expectations and build trust.

Do not underestimate local players. Domestic companies dominate online retail in developing markets because they understand local consumer preferences and the e-commerce challenges and have well-honed online retail skills developed in their home countries. Even as foreign retailers enter, these local firms will continue to be formidable competitors.

Have a long-term focus. Launching e-commerce operations in developing markets demands patience. It takes time to navigate a market, learn about online consumers, and build a reputable online brand.

Expansion and Long-Term Rewards

The race to expand online retail in developing markets has already begun for both international and home-grown retailers. E-commerce and multichannel integration in emerging markets offer tremendous opportunities—at potentially lower risk and investment than building bricks-and-mortar stores. The best path to online retail success is the one that creates an immediate impact in developing markets and builds a growing, long-term advantage.

Custom House Global Fund Services receives accreditation under new ISAE & SSAE standards

Custom House Global Fund Services (the ‘Group’), one of the world’s leading hedge fund administrators, has today announced that it has achieved dual accreditation under both the new US auditing standard, SSAE 16 (the replacement for SAS 70), and its international equivalent, ISAE 3402 (collectively the ‘New Standards’).

The new accreditation covers the controls for all fund administration and shareholder services’ work carried out in the Chicago, Dublin, Luxembourg, Malta and Singapore offices, as well as the controls in place in the related IT platform. This means that all user auditors, as well as existing and new clients, are assured that the Group’s relevant control environment has been subjected to an extensive and independent review by Ernst & Young, one of the world’s leading accounting and audit firms.

“The New Standards impose even greater obligations on the management of the Group than the old SAS 70 regime and extending the reach of the New Standards across the whole Group during the single year in which they were introduced took a lot of planning", said Dermot Mockler who was responsible for managing the project.

"Whilst individual offices within the Custom House Group have previously achieved accreditation under the old SAS 70 regime, this is the first time they have been applied uniformly across all operational offices within the Group, a development that reflects the increasingly complex and global nature of Custom House Group's client base. Independent testing by Ernst & Young has shown the control environment now in place to be robust, transparent and consistently applied throughout the Group.

Tax co-operation boosted as Global Forum publishes new reports

The Global Forum has adopted nine new peer review reports and three supplementary reports. This brings to 79 the total number of reports adopted, with a further 17 reviews under way. The focus will now shift to exchange of information in practice with the launch of Phase 2 reviews and steps to improve cooperation amongst Competent Authorities.

The progress made by the Global Forum was commended by the G20 leaders in their Communique issued at their Los Cabos Summit yesterday wherein they urged all countries to fully comply with the international standard and directed the Global Forum to quickly start examining the effectiveness of information exchange practices.

The recently adopted peer review reports on Cook Islands, Liberia, Lebanon, Grenada, Montserrat, Saint Lucia, and United Arab Emirates describe each jurisdictions rules for ensuring that information is available to the tax authorities, how such information can be accessed by the authorities and the mechanisms in place to exchange information with foreign tax authorities. The reviews of the People’s Republic of China and Greece consider in addition whether the jurisdictions’ exchange information effectively in practice. The reviews also identify deficiencies and make recommendations on how to address them.

The three supplementary reports – for Antigua and Barbuda, Estonia, and the Seychelles – assess the changes to legislation that these jurisdictions have made to address recommendations made by the Global Forum in their Phase 1 reviews.

Deficiencies identified in the reports include  the lack of available ownership information as regards foreign trusts and bearer shares; incomplete accounting information for some forms of companies, trusts and partnerships, including foreign or international entities; and some limitations to access information, including bank information or information protected by professional secrecy.

In the case of Lebanon, Liberia and United Arab Emirates, the Global Forum considered that the deficiencies in their legal framework are sufficiently significant so as to prevent them from moving to the next stage of the review process, until these deficiencies are addressed.

The supplementary reviews show that the legal and regulatory framework for transparency and exchange of information of all the three jurisdictions has improved.  As a result of their supplementary report, Antigua and Barbuda, and Seychelles, which were previously prevented from moving to Phase 2 of their review process can now do so. 

Competent Authorities meet to improve exchange

The Global Forum also organised the first meeting of for the authorities directly engaged in international exchange of tax  information in practice, in Madrid. The meeting brought together 186 delegates from 78 Global Forum member jurisdictions and 6 international organisations.

All participants reaffirmed their strong commitment to effective information exchange and examined the best ways to improve their relationships. It was clear from the meeting that the competent authorities present are all “upping their game”, putting more resources into their EOI operations and improving management systems and staff training. This will be reflected in improved response times and better quality responses to requests from treaty partners in the future.

Delegates discussed ways to further improve communication between competent authorities, building on existing initiatives aimed at improving cooperation and developing measures to overcome practical impediments to exchange of information.

Peer review reports at a glance:

The People’s Republic of China, Cook Islands, Grenada, Greece, Lebanon, Liberia, Montserrat, Saint Lucia, and the United Arab Emirates (UAE).

Supplementary reports

Antigua and Barbuda, Estonia, and the Seychelles.

Selon le World Wealth Report 2012, si le nombre de millionaires dans le monde a augmenté légèrement, leur capacité d'invertissement a diminué en 2011

Selon la 16^e édition du World Wealth Report, le nombre de particuliers fortunés a augmenté de 1,6 % en Asie-Pacifique pour atteindre 3,37 millions en 2011. Ainsi, cette région est pour la première fois en tête de celles qui comptent le plus grand nombre de millionnaires devant l’Amérique du Nord qui en compte 3,35 millions. Cette dernière reste la région qui concentre la plus grande partie du patrimoine avec 114 000 milliards de dollars, contre 107 000 milliards de dollars pour la région Asie-Pacifique.

Le nombre des millionnaires a augmenté légèrement, mais leur capacité d’investissement a diminué

Après avoir fortement progressé en 2010 (+ 8,3 %), le nombre des particuliers fortunés dans le monde a augmenté de 0,8 % pour atteindre 11 millions en 2011. Cette légère augmentation est largement imputable aux  particuliers fortunés qui disposent de 1 à 5 millions de dollars de patrimoine. Ce groupe, qui a progressé de 1,1 %, représente 90 % des millionnaires dans le monde. À titre de comparaison, la richesse des grandes fortunes dans le monde en 2011 a diminué de 1,7 % pour atteindre 420 000 milliards de dollars (contre une augmentation de 9,7 % en 2010, totalisant 427 000 milliards de dollars). Le nombre des particuliers les plus fortunés dans le monde** a chuté de 2,5 % en 2011 et leur richesse a diminué de 4,9 % après une augmentation en 2010 de  respectivement 10,2 % et 11,5 %.

Dans le classement des 12 pays qui comptent le plus grand nombre de millionnaires, la Corée du Sud devance l’Inde à la 12^eplace, tandis que les trois premiers pays (États-Unis, Japon et Allemagne) regroupent 53,3 % des particuliers fortunés, soit en légère hausse par rapport à 2010 (53,1 %). A noter que parmi ce groupe de pays, le Brésil enregistre le taux de croissance le plus élevé avec + 6,2 % du nombre de millionnaires.

Pour George Lewis, chef de groupe, RBC Gestion de patrimoine : « Un plus grand nombre de particuliers a dépassé un million de dollars de revenus disponibles en 2011, mais leur patrimoine  a diminué dans l’ensemble, en raison de la volatilité du marché. Il est intéressant de constater que, pour la première fois cette année l’Asie-Pacifique est la région qui compte le plus grand nombre de millionnaires. Toutefois, les pertes enregistrées sur des marchés clés tels que Hong Kong et l’Inde indiquent que la richesse a globalement diminué en Asie-Pacifique ».

2011 a été la deuxième période la plus volatile au cours des 15 dernières années

Suite à une période de quasi normalité en 2010, les niveaux de volatilité en 2011 ont atteint un pic en novembre en raison des craintes sur la contagion potentielle de la crise de la dette de la zone Euro à certaines grandes économies.

Pour Jean Lassignardie, directeur des ventes et du marketing de l’activité mondiale services financiers chez Capgemini : « L’Europe reste la première préoccupation des investisseurs, car des crises répétées sont susceptibles d’inquiéter les marchés boursiers. D’autres facteurs, tels que les performances économiques de la Chine, les fluctuations des économies matures, les changements de leadership politique dans le monde, seront déterminants dans l’augmentation ou la diminution des patrimoines en 2012 »,

L’incertitude économique et la volatilité des marchés en 2011 ont suscité la peur du risque chez les investisseurs

Face à l’incertitude, de nombreux investisseurs se sont tournés vers des valeurs refuges en 2011. Les moteurs économiques de la richesse ont également été diversifiés. Ils ont affecté diverses classes d’actifs et ont produit des résultats variables : les actions et les matières premières ont été moins performants, les investissements tangibles ont perdu de la valeur, les investisseurs préférant préserver leur capital ont privilégié les investissements monétaires et les obligations. Ces dernières ont constitué la catégorie d’actifs la plus performante : le prix des bons du Trésor américains à long terme a atteint des sommets historiques.

En conclusion, le rapport indique que les clients fortunés doivent se préparer à une volatilité durable des marchés et à des rendements à deux vitesses - susceptibles d’être extrêmement positifs ou extrêmement négatifs, plutôt qu’harmonieusement répartis.

Global High Net Worth Population Increases Slightly as Their Investable Wealth Declines, Finds World Wealth Report

Asia-Pacific surpasses all regions with the largest HNWI population, while North America retains the most HNWI wealth

The overall financial wealth of high net worth individuals (HNWI1) declined across all regions in 2011, with the exception of the Middle East, according to the World Wealth Report 2012, released today by Capgemini and its new partner, RBC Wealth Management. The 1.7 percent decline is the first since the 2008 world economic crisis, a year in which HNWI global wealth declined by 19.5 percent.

The 16th annual World Wealth Report finds that the number of HNWIs in Asia-Pacific expanded 1.6 percent to 3.37 million in 2011, making Asia-Pacific the largest HNWI region for the first time, surpassing North America’s HNWI population of 3.35 million. North America remained the largest region for HNWI wealth at US$11.4 trillion compared to US$10.7 trillion in the Asia-Pacific region.

HNWI population edged up slightly while aggregate investable wealth declined

After witnessing robust growth of 8.3 percent in 2010, global HNWI population grew marginally by 0.8 percent to 11.0 million in 2011. Most of this growth can be attributed to HNWIs in the $1-5 million wealth band, which grew 1.1 percent and represents 90 percent of the global HNWI population. In contrast, global HNWI wealth in 2011 fell by 1.7 percent to US$42.0 trillion (compared with 9.7 percent growth to US$42.7 trillion in 2010). The global population of Ultra-HNWIs² declined by 2.5 percent in 2011 and its wealth declined by 4.9 percent after increasing by 10.2 percent and 11.5 percent respectively in 2010.

The HNWI population country ranking saw South Korea replace India for the 12th position, while the top three countries, U.S., Japan and Germany, retained 53.3 percent of the total share of HNWIs, slightly up from 53.1 percent in 2010. Of the top twelve countries by population, Brazil saw the greatest percentage rise (6.2 percent) in the number of HNWIs.

“While more people surpassed the US$1 million disposable income level in 2011, the aggregate wealth of high net worth individuals declined overall, as market volatility took its toll,” said George Lewis, Group Head, RBC Wealth Management. “It is significant that for the first time this year there are now more high net worth individuals in Asia-Pacific than in any other region. However, losses in key markets such as Hong Kong and India meant that wealth contracted in Asia-Pacific overall..”

2011 was second most volatile period in the past 15 Years

Following a period of near normalcy in 2010, volatility levels spiked in 2011 reaching a peak in November 2011 due to widespread concerns that the Eurozone’s debt crisis might overwhelm some larger economies. Although European Union leaders have taken steps to contain the sovereign debt crisis, weak growth and challenges in the Eurozone are expected to add to the volatility in 2012.

“Europe will be top of mind for investors, as repeated flare-ups are likely to keep markets on edge. Additional drivers such as the economic performance in China, mature market headwinds, global political leadership changes and policy decisions will all play key roles in determining whether 2012 drives increases in HNWI wealth or further losses,,” said Jean Lassignardie, Corporate Vice President, Capgemini Global Financial Services.

Economic uncertainty and volatile markets in 2011 drives investor risk-aversion

Uncertainty drove many investors to safe-haven assets in 2011. Economic drivers of wealth were also diversified in 2011, affecting asset classes and producing varied results, with equity and commodity performance on the decline, tangible investments losing value, and investor preferences moving toward capital preservation through cash and fixed income. The best-performing asset class was fixed income, with the price of long-term U.S. Treasuries reaching historic highs.

Moving forward, HNW clients will need to prepare themselves for ongoing market volatility and extended periods of bimodal investment outcomes, with returns likely to be extremely positive or extremely negative, rather than equally distributed, the report concludes.

G20: Global Forum and OECD report steady progress in international tax co-operation

Steady progress is being made towards tackling tax evasion more effectively, according to reports presented to G20 leaders at their summit in Los Cabos, Mexico today.

A report by the Global Forum on Transparency and Exchange of Information for Tax Purposes says significant progress has been made since the last G20 Summit in Cannes in November 2011. In particular, the Global Forum has now launched a number of reviews to assess whether cross-border exchange of information is being implemented effectively.

A supplementary report by the OECD shows growing adherence to automatic exchange of tax information. The OECD also announced a new initiative to tackle the misuse of corporate vehicles such as shell companies. The work will tackle the issue of tax base erosion and profit shifting by some multinational firms. A progress report on the initiative will be presented to the next G20 Summit.

The Global Forum reports that more than 800 cross-border exchange of information agreements have now been signed. And since the Cannes Summit, four more countries - Colombia, Costa Rica, Greece and India - have signed a multilateral Convention to counter tax evasion. The number of signatory countries now stands at 35. 

The Multilateral Convention on Mutual Administrative Assistance in Tax Matters offers a wide range of tools to facilitate cross-border tax cooperation. It includes automatic exchange of information, multilateral tax examinations and international assistance in the collection of tax due. At the same time, the Convention imposes safeguards to protect the confidentiality of the information exchanged. 

The Convention reinforces cooperation to target tax evasion by both individuals and corporations. It complements the work of the Global Forum, supported by the OECD, which now includes 109 countries in extensive peer review processes. The Global Forum examines laws and regulations (Phase 1 reviews) and implementation of the international standard of transparency and exchange of information (Phase 2 reviews).

Chinese trust delegation visits Guernsey

A delegation of nearly 30 officials and practitioners from the Chinese trust sector has visited Guernsey to find out more about doing business in the Island.

The delegation was led by Wang Lijuan, Vice President of the non-banking supervisory department at the China Banking Regulatory Commission (CBRC). She was joined by a CBRC colleague, executives of the China Trustee Association (CTA) and several other CTA members who are in senior positions within trust companies in China.

The visit was arranged and coordinated by Guernsey Finance – the promotional agency for the Island’s finance industry, both through its offices in Guernsey and Shanghai.

Peter Niven, Chief Executive of Guernsey Finance, said: “Guernsey Finance established a representative office in Shanghai at the end of 2007 and since then, we have made huge strides in raising awareness of the Guernsey brand. Part of this process has been building relationships with the relevant professional associations, including the China Trustee Association (CTA).

“We have met with them on a previous visit to China, a group from the CTA visited the Guernsey Registry during last year and we were fortunate to meet with some members during our visit to Beijing in April this year. As part of that meeting, we learnt that a large delegation was due to visit Europe, including London, during June and so we immediately extended an invitation for them to visit Guernsey.

“We were delighted that they were able to arrange their itinerary so that they could visit us and learn firsthand about the Island in terms of its beauty, heritage, culture and financial services offering.”

Mr Niven welcomed the group to the Island on the evening of Thursday 14 June. The following day the delegation was given a tour of the Royal Court and Bailiff’s Chambers by Deputy Bailiff, Richard McMahon.

They were then given presentations on the local finance industry by Mr Niven and his deputy, Fiona Le Poidevin. The offering at the Guernsey Registry was outlined by Alan Bougourd, Registrar and John Ogier, Registrar of Intellectual Property, spoke on the Island’s IP environment, including the latest image rights legislation. Then Alan Chick, Chairman of Richmond Fiduciary Group, outlined the work that his firm has been undertaking in the Chinese marketplace.

The group was then given a tour of Castle Cornet by Jason Monaghan, Museums Director, which concluded by Ms Wang firing the noon day gun. This was followed by a lunch in the Hatton Gallery where Chief Minister Peter Harwood gave a speech and exchanged gifts with Ms Wang. The lunch also provided a networking opportunity attended by several members of the local trust and fiduciary community.

In the afternoon, the party was given a tour of the Island before flying back to London.

Mr Niven added: “I was delighted that we were able to put together such an impressive itinerary. The delegation was here for less than 24 hours but I really do think that we were able to showcase the best of the Island in its various different guises. We have made a very positive impression which will enable us to further strengthen our ties with the CTA and its membership in the future. Indeed, extending our reach, particularly through professional associations, is an extremely important strand of our work to help develop new business flows from China.”

Global Witness calls for action to end hidden company ownership in light of money laundering accusations

Global Witness is today revealing evidence that numerous UK companies appear to have helped facilitate a major money laundering scandal centred on a bank in Central Asia. Grave Secrecy, launched today, shows how urgent action is needed to address the current ease with which the UK and other major economies are used to launder the proceeds of corruption, tax evasion and other crimes.

Grave Secrecy exposes how billions of dollars of suspicious transactions at AsiaUniversalBank, Kyrgyzstan’s largest bank until April 2010, involved UK, New Zealand and Bulgarian-registered companies.

“It is so easy to set up a secretive ‘shell’ company in the UK and elsewhere that criminals, terrorists and corrupt politicians can easily move money around the world with impunity,” said Tom Mayne, a Global Witness campaigner. “Not only that but you can do this perfectly legally. This denies citizens of poor countries the chance to lift themselves out of poverty and leaves them dependent on aid,” continued Mayne.

The report reveals:

• That three UK companies had US$1.2 billion running through their accounts despite not being involved in any real business that Global Witness could ascertain.
• That the suspicious transactions went through many banks around the world, with the largest amounts passing through Citibank in New York, the UK’s Standard Chartered and Austria’s Raiffeisen Zentralbank. These banks continued their relationship, though one bank, UBS, was sufficiently concerned about their relationship with the Kyrgyz bank that it broke off relations.
• That in one case, the identity of a dead man from Russia was used as the front for a UK company. While this person had died three years before the company was set up, he was listed as the company’s owner and he even ‘attended’ a company meeting in London.
• That the Kyrgyz authorities believe that some of the companies have potential direct ties to Maxim Bakiyev, the son of the former president. Maxim Bakiyev has been indicted on money laundering charges in Kyrgyzstan, but is currently in the UK, having claimed political asylum.
• That the Kyrgyz bank’s international reputation was helped by the presence of three former US Senators, including former presidential candidate Bob Dole, on its board.

At present, it is virtually impossible to find out the identities of the actual, ‘beneficial’ owners of companies. This is because there are several perfectly legal ways that corrupt politicians, tax evaders and terrorists can hide their identities. One way is to set up a company in a major financial centre such as the UK, then have its shareholders be other companies registered in places that keep ownership secret. Another way is to pay people to have their name on your company documents, instead of your own.

Global Witness believes that information on the real owners of companies must be made public. The EU has the opportunity to put a stop to these abuses by closing these loopholes in its upcoming anti-money laundering directive. “If the EU doesn’t act, European countries will continue to be complicit in the theft of billions of dollars belonging both to citizens of developing countries and taxpayers of developed countries,” concluded Mayne.

Notes

1. The global anti-money laundering standards require banks and other institutions to identify the real, beneficial owners of accounts, since without this information they cannot meaningfully assess the risk of the money deposited being the proceeds of crime. However, there are two problems with this:

• Lots of countries do not comply with this standard. The Financial Action Task Force (FATF) carries out ‘mutual evaluations’ of countries to assess their degree of compliance with the global anti-money laundering standard. Of the 34 countries that are FATF member states an astonishing 30 were deemed to be ‘not compliant’ or ‘partially compliant’ with this particular recommendation, as of their last FATF evaluation. Countries that are ‘not compliant’ include the US, Canada, Germany and Switzerland.
• The anti-money laundering requirements on beneficial ownership do not go far enough. FATF’s recommendation on beneficial ownership requires that countries, at a minimum, make beneficial ownership information available to competent authorities such as law enforcement. It is possible to do this with no registry whatsoever – you just leave it up to law enforcement to do what they can with existing sources of information. But while this may contribute to law enforcement efforts once money has already been laundered or other crimes already committed, it does nothing to prevent the misuse of front companies in the first place.

2. The World Bank reviewed 150 big cases of corruption between 1980 and 2010 and identified the companies that were used to hide peoples’ identities. Companies registered in the US topped the list; those registered in the UK and its Crown Dependencies and Overseas Territories came second.

Labuan FSA Witnessed The Signing of MoU on Enhancing Competencies of Labuan Financial Advisers at the Labuan IBFC International Conference

The Labuan International Insurance Association (LIIA) in collaboration with Labuan IBFC Inc. Sdn Bhd today organised an international conference with the theme "Positioning Labuan as the Centre for Reinsurance" at the Grand Dorsett Hotel, Labuan.

The conference also witnessed the signing of a Memorandum of Understanding (MoU) between the LIIA, Malaysia Insurance Institute and Chartered Institute of Insurance. The initiative is part of the strategic actions by the parties to enhance the competencies and standard of professionalism among financial advisers of Labuan life insurance brokers through a more structured training development program. The program will be one of the Authority's efforts in raising the capacity and capability of the industry players as well as investors' confidence on the Labuan IBFC.

The conference brings together a myriad of insurance experts and industry practitioners, and is expected to discuss key issues and developments in the international insurance industry. It will also address future challenges and opportunities in positioning Labuan as the centre for reinsurance and retakaful. This engagement is timely given that one of the strategic objectives in the Financial Sector Blueprint (2011 — 2020) for the Labuan IBFC is to strengthen the regional financial interlinkages by leveraging on the existing infrastructures such as of the retakaful sector as well as harnessing the financial eco-system.