- US order to reduce Tax evasion—FATCA—Foreign Account Tax Compliance Act
a. Fat Cat- memory
b. FATCA designed to make sure FAT CATs pay their fair share of taxes—reduce tax evasion
c. Foreign Account Tax Compliance Act—goal is to have all income earned by US tax payers to be reported to the Internal REVENUE SERVICE (IRS), US tax authority
d. This impact all foreign financial institutions around the world as they are required to comply with certain initiatives
- 2 out of 3 high Net worth households led by baby boomers (1946 to 1965)
a. Baby boomer (1946-1965)
b. Generation x (1966 to 1980)
c. Millennials 1981 to 2000
d. Generation Z
- Changes in the way FI have defined and approached Wealth management –Wealth management is no long confined solely to the wealth
- Investable assets—Liquid assets, such as stocks, bonds and MF
- Investable assets—Liquid assets, such as stocks, bonds and MF
a. Illiquid assets, real estate, residential or commercial or Equity in a private company
b. Typical Net Worth Calculation factors in Debts but in WM, not take clt debt into account when identifying high Net worth clit
- What Entity is not responsible for regulating the sale of Mutual funds in Canada?
a. IIROC
b. CSA
c. MFDA
d. AMF
Answer B
CSA Canadian Securities administrator is a joint panel of regulators present 10 Province and 3 territories whose goal is to harmonize efforts toward securities regulation in Canada. not regulate the sale of MF or securities
MFDA- regulates the sale of MF by members in all provinces, except Quebec
IIROC- regulates sale of MF and Securities by member
AMF—Authorities des marche financiers , regulates the sale of all mf in Quebec
If you work for a MF company, you will be licensed through the MFDA
If you work for full-service brokerage /firm, you would be licensed through IIROC
Robo advisor—computerized program, give advice based on client answers to a series of qns. This service is generally more appealing to younger demographic, as opposed to elder, who prefer meet advisor face to face
Attractive to client
- Younger (Millennials or generation X)
- Comfortable with online technology
- Comfortable with Self-service model
- Have less complex investment needs
- More fee-conscious
- What does PIPEDA govern
a. Personal information protection and electronic Documents Act
b. Governs how personal information is collected, used and disclosed
- The fund facts document – MF, info in a clear and easy to understand format
a. Investor is also entitled to more detailed documents, such as prospectus upon request
- Cryptocurrency –form of digital currency, that is Encrypted. This allows for more secure electronic transactions and the transfer of assets
a. Cryptocurrencies carry risk—allow for anonymity—buyers and sells are unknown, which makes it difficult to monitor transaction for money laundering
b. Uncertainty and risk, IIROC required higher margin requirements for cryptocurrency futures contracts than regular future/commodity contracts
- Acronym PCMLTFA stand for Proceeds of Crime (Money laundering) and Terrorist Financiering Act
- What is name of the ACT that was designed to reduce tax evasion in the US?
a. FATCA –Foreign Account Tax Compliance Act, United States enacted, in order to reduce Tax Evasion by US taxpayers who hold financial accounts outside of the US
- The major occupational groups that make up a large portion of HNW client segment include following: 7 big segments
a. Entrepreneurs
b. Retirees
c. Professional service providers
d. Senior Business executives
e. Celebrities, media, sports etc
f. Those who inherited wealth
g. Wealthy immigrants
