abrdn’s Post

More great work by the team this week. Take a look at Noel Butwell’s piece if you want an insight into the complexities that financial advisers face - and how joining up disparate systems and support could help make things much simpler… #IFA #Investments

📰 The Financial Times has shed light on the potential risks for investors in the wake of the rise of the European far right. The article delves into the implications and challenges that this political shift poses for financial markets. As investors, it's crucial to stay informed about these developments and their impact on our investment strategies. Check out the article for valuable insights. #EuropeanPolitics #InvestmentRisks #FinancialMarkets https://ift.tt/XBtrQzh

🔴 "The real risks for investors after the rise of the European far right - Financial Times" The recent surge of far-right political movements across Europe has raised concerns for investors. Check out the insights provided by the Financial Times on the potential risks and implications for investment strategies. It's crucial for investors to stay informed and adapt to the evolving political landscape. Understanding the potential impacts of these movements on markets and economies is essential for making informed decisions. #FarRightRisks #InvestmentStrategies #EuropeanPolitics https://ift.tt/XBtrQzh

Keynote speech from Verena Ross at #EUROFI Financial Forum on the CMU 🔹 A new label for "basic" investment products and "simplified" advice "We believe that in general, European investors need simpler investment products. Rather than putting ever more complex and costly products on the market, which might cater to a small minority of investors, we should create a voluntary EU-label for “basic” investment products. Such a label could be used by certain financial instruments, such as for example a sub-set of UCITS funds or a plain vanilla corporate bond. Simple advice that meets basic investment needs should go hand in hand with that. Such "simplified" advice (which could be based on streamlined suitability assessments) would be a step that could also benefit firms by reducing compliance costs. With a new label and simplified advice, we propose to pave the way for easy-to-access and cost-efficient products. This will empower European retail investors to make informed decisions - based on simple, accurate and reliable information and support." https://lnkd.in/d9RxiJMi #CMU #CapitalMarketsUnion #RIS #RetailInvestmentStrategy #MiFID #PRIIPs #FIDA #OpenFinance #AI #Benchmarking #SingleMarket #Regulation #Investments #FinancialRegulation #CapitalMarkets #EU #Innovation

Our latest WeekWatch - A weekly round-up of key events in markets and personal finance news. #marketupdate #personalfinance #globalmarkets

ESMA´s market survey on Neo-brokers ! TRV Article - Neo-brokers in the EU: Developments, benefits and risks ! Characterised by innovative, online-only investment services, neo-brokers have grown rapidly in recent years. To gain understanding of their activities, and as part of continual monitoring efforts, ESMA conducted a market survey of EU-based neo-brokers in 2023. The results confirm that most of the firms’ trading volumes originate from retail clients. Share trading accounts for the majority of order volumes. Larger neo-brokers tend to offer wide ranges of securities issued in the EU and the US, while smaller firms tend to specialise in national markets in the EU. Overall, US-issued shares are the most commonly traded, but those issued in the EU represent a significant and growing proportion of trades. Neo-brokers adapt their business model to the type of financial instrument traded. They generally act as a service provider for clients trading shares and ETFs, but act as counterparty to clients trading CFDs and some other products, executing such trades ‘over the counter’. Neo-brokers execute most client orders in shares and ETFs on a limited number of trading venues, which are often not the main national markets. These smaller markets tend to have a higher concentration of transactions from retail orders. Neo-brokers can bring significant benefits to investors and markets, including promoting capital market participation among households and potentially offering lower transaction prices. Their innovative platforms are convenient and accessible to many consumers. At the same time, they may pose risks, for example if they facilitate trading in risky or complex products potentially not suitable for individual retail clients. Additionally, social media functions are in some cases integrated into retail trading platforms, which may encourage clients to trade without being fully aware of the risks. In general, trading platforms should be designed to promote sensible investment decision-making rather than excessive trading. Users posting investment recommendations must comply with requirements established by the Market Abuse Regulation, as highlighted in a recent ESMA Warning. Finally, the digital provision of financial services – including through neo-broker platforms – often involves cross-border business, which can promote efficiency and competition. At the same time, it can make it harder for authorities to have a comprehensive view of retail investor activities in their domestic markets, suggesting that monitoring trends, risks and market developments relating to neo-brokers at ESMA level may have added value. Best regards Hartmut Renz More information can be found here: https://lnkd.in/e_BDfWVq

Financial Market Update - Jan & Feb 2024 Please click on the link below to read our free monthly financial market update. In this update our investment specialists provide an overview of financial markets and their views on the current market positions and trends. https://lnkd.in/e3NV54xQ #financialmarkets #financialadvice #wealthmanagement

Financial Market Update - June 2024 Please click on the link below to read our free monthly financial market update. In this update our investment specialists provide an overview of financial markets and their views on the current market positions and trends. https://lnkd.in/eQD2dpg5 #financialmarkets #wealthmanagement #financialadvice #investing

Technology and innovations continue to expand beyond borders. The future of finance needs to follow suit. Open, accessible, and seamless for all with proper government regulation in place. Hear more from Jeremy Allaire in the latest #TheMoneyMovement with Harvard economist Kenneth Rogoff. https://lnkd.in/gfsBmpxX

«Universal access to impartial financial education from a young age, using behavioural finance principles to encourage individuals to save, and developing transparent and customer-centric products are foundational steps towards empowered financial resilience.»  Read How the financial sector can help restore cooperation in a divided world, World Economic Forum 👉