When asked where fund groups could make improvements during the CEO roundtable at International Adviser’s International Fund Links Forum, the executives requested that they increase their knowledge of life company functions and allow life companies an increased communication with customers.
John Van Der Wielen, executive chairman at Friends Provident International, said both life companies and fund groups could benefit from a “better understanding of what the other does.”
Steven Levin, global head of distribution at Old Mutual Wealth, added that fund groups should be wary of those who take “inappropriate funds” to retail investors.
“I would ensure the preparation of more responsible management,” he added.
Meanwhile, when asked regulatory activity in Hong Kong, which recently banned indemnity commission, Clive Baker, chief executive officer at Zurich International Life, said the country “did not currently offer a level playing field”.
“There is turmoil at the moment, but it will eventually level itself out,” he added.
Chief executive at RL360, David Kneeshaw, added that his company withdrew its products from the region long ago because “the regulator is anti-ILAS (Insurance Linked Investment Schemes) and this will not change for a long time”.
However, chief finance officer at Legal & General, Tom Kenny, said there were “many opportunities” in the region, which could arise from “different areas of the market”.
On the issue of HM Revenue & Customs’s recent clampdown on tax avoidance through the introduction of accelerated payment notices and follower notices, Mike Foy, managing director at Axa Wealth International, said tax avoidance and evasion became “synonymous” long before the recent activity.
“It first happened two years ago,” he added. “The clampdown on avoidance schemes is the best thing that could have happened, as it drives people into our international market.”
However, Mark Armstrong, managing director at Canada Life International, was more negative, saying many companies “on the edge” had created issues surrounding the way in which tax avoidance is viewed for “the whole industry”.
He added: “Offshore bonds have always been used for tax planning and this will remain the case.”
Kneeshaw remained flippant, stating: “If you want to avoid tax go to accountants or lawyers, not the life industry”.
