Posts

DLA PHOTO

DLA Piper boosts trainee salaries to £77k, as pay rises continue

DLA Piper has upped the salaries of its trainees and newly qualified (NQ) solicitors, as City law firms continue to chuck extra cash at their rookie ranks.

The global titan has confirmed that first years will now receive a salary of £45,000, up 2% from £44,000, while those in year two of their TCs will earn £50,000, again a rise of £1,000 or 2%. There’s extra cash for DLA’s NQs, too. The firm’s new associates will now receive £77,000, an extra £2,000 or 3%, putting them on the same remuneration levels as their peers at Baker McKenzie and Norton Rose Fulbright.

The firm, which offers around 70 training contracts each year, has also bumped pay across its offices outside London. First year trainees in the English regions and Scotland now earn £28,000, while those a year ahead will now receive a salary of £31,000 — an extra £1,000 across the board. Regional and Scottish NQ pay now sits at £44,000, up from a previous figure of £42,000.

News of the uplifts come just weeks after it emerged that DLA Piper had ditched a policy which ensured its London and regional trainees were paid the same while completing secondments overseas. Speaking at the time, a spokesperson for the firm said the “adjustment to the secondment policy for our UK regional offices” was part of a “new international graduate programme”.

A host of City firms have confirmed salary rises in recent weeks. A full breakdown of what they pay (and much, much more) can be found on the 2018 edition of our Firms Most List.

Awards Cerem PHOTO

Awards Spotlight: Best Best-Practice in Financial Advisory

The best examples of excellence within the international finance industry will come into focus on 4 October at the 19th annual International Fund & Product Awards, which is held at the Merchant Taylors Hall, London.

In recognition of the extraordinary talent in the industry, the Award for Best Best-Practice in Financial Advisory/Wealth Management is now receiving entries.

This category is intended to recognise wealth management/financial advisory firms located in and/or operating in any region of the world, which have not only adopted best practices on behalf of their clients, but have gone the extra mile to put in place practices that serve as a beacon for others looking to improve their own businesses. This perennially popular award will be presented to 8 regional winners from which an overall category winner will be selected:

– North America
– Latin America
– Europe
– Middle East
– Africa
– Asia
– Australasia
– United Kingdom

To cast your nominations, DO NOT DELAY: for further information and the full list of this year’s categories, please visit www.ifpawards.net

The deadline for entries is 22 June.

Last year’s International Fund & Product Awards took place at the Four Seasons Hotel Park Lane.

For any questions regarding the awards, please contact Christopher Copper-Ind at Christopher.[email protected] or telephone +44 (0)20 3892 7910.

Click here to view the online version of our magazine’s supplement edition, featuring highlights of the event and a list of all of the winners of last year’s awards.

Tax PHOTO

The 10 countries that make the most money from taxes

Paying taxes is something no one enjoys doing, but the amount individuals and companies pay varies enormously throughout the world. The Organisation for Economic Co-operation and Development (OECD) has calculated how much tax was paid in 2016 by 10 countries. Here’s what it discovered. How does your country measure up?

Australia: $348 Billion

The latest figures available show Australia raised $348 billion from its 24.13 million-strong population. Individuals pay income tax on a progressive basis from 19% to 45%. A Medicare Levy is payable on top to pay for public healthcare; this was increased from 1.5% to 2% in 2014, while since 2015 higher earners who don’t have private hospital cover must also pay the Medicare Levy Surcharge of between 1% and 1.5% on top. Corporate taxes stand at 30%, however the government is pushing for this to be cut to 25% by 2025.

Japan: $351.6 Billion

Japan received $351.6 billion from its population of 127 million, according to the most recent figures. In 2017 the country’s ruling bloc approved a plan to cut the corporate tax rate from 30% to 20%, although only for companies that raise wages and increase capital spending. Japan has a progressive income tax system, with rates from 20% to 40%.

South Korea: $371.1 Billion

South Korea, which received $371.1 billion from its 51 million population, is undergoing huge changes this year as the country enacts a 2018 tax reform bill. Some of the changes include adding a new 25% corporate income tax bracket for taxable income in excess of $270 million, instead of the previous flat rate of 22%. Meanwhile the top income tax bracket has been increased from 40% to 42% for higher earners.

Spain: $412.4 Billion

With a population of 46.6 million, Spain generated tax receipts of $412.4 billion in 2016 according to the report. The country operates a sliding scale of income tax from 19% to 45%, while the general corporation tax rate is 25%. Meanwhile, residents of the Andalucia region had some good news this year, as it was announced changes to inheritance tax rules mean that the vast majority of children or spouses will not have to pay it anymore.

Canada: $491.1 Billion

The system of paying federal tax is simple in Canada: there is a sliding scale of 15% to 33% depending on how much you earn, however it gets a bit trickier when you need to add on provincial and territorial tax as the rate you pay depends on your income – and where you live. The rates vary dramatically from 4%, the lowest bracket in Nunavut, up to the highest bracket in Nova Scotia of 21%. The country’s population of 36.3 million brought in a total of $491.1 billion in 2016.

Italy: $792.8 Billion

Italy’s 60.6 million-strong population helped contribute to vast tax revenues of $792.8 billion. Italians pay personal income tax of between 23% to 43%, plus regional tax which is typically between 1.23% and 3.33%

United Kingdom: $869.4 Billion

The UK generated $869.4 billion in tax from its population of 65.6 million people, according to the OECD report. The UK uses a progressive income tax system, where those living in England, Wales and Northern Ireland pay between 20% and 45% tax, while those in Scotland pay 19% to 46% tax depending in their earnings. Residents must also pay National Insurance contributions too, which are 12%, although workers who earn more than $62,380 pay only 2% on earnings over that threshold. The Corporation Tax main rate is 19% but is set to be reduced to 17% in 2020.

France: $1,115.9 Billion

With a population of 66.9 million, France generated $1,115.9 billion in tax. However it will be interesting to see the results of dramatic tax cuts President Emmanuel Macron made in 2017, including slashing the contentious wealth tax effectively by 70% and introducing a 30% flat rate on capital gains.

Germany: $1,305.7 Billion

A combination of being the biggest economy in Europe, a population of 82 million and a relatively high taxation system means Germany has the second-largest tax revenue in the report at $1,305.7 billion. In addition to income tax, which varies from 14% to 45% for very high incomes, everyone has to pay solidarity tax, which is capped at 5.5% of an individual’s income tax. Also, if you’re a member of a church registered in Germany, you will also be required to pay a church tax of 8% or 9% of your income, depending on which federal state you live in.

United States: $4,846.3 Billion

The US tops the list in the report for having the highest level of tax revenues, with $4,846.3 billion tax generated from its population of 325.7 million. However with the US going through huge tax reforms this year under President Trump, it will be interesting to see the impact that has on those figures in future. Most analyses suggests that while the changes aren’t the biggest tax cuts the country has ever seen, the reduction of the corporate tax rate from 35% to 21% is the biggest corporate tax cut in US history.

SA PHOTO

UK likely to be SA’s biggest foreign direct investor — even after Brexit

Created after the Brexit decision, the UK’s department for international trade sees SA as a key business partner.

Last month marked a year to go until the UK leaves the EU. While we’ve been clear that we will remain close friends and partners of the EU in future, we also have a unique opportunity to re-invigorate our relationships with other trading partners around the world.

The UK’s new department for international trade, created after the referendum, is leading the way. As we look to establish our own independent trade policy for the first time in more than 40 years, our business relationships with countries such as SA will be key to our mutual prosperity.

After all, as the International Monetary Fund (IMF) predicts, 90% of global growth will be outside the EU in the coming decades, and the UK’s new trade policy should be about helping businesses from both our countries work together even more extensively.

UK businesses are already recognising SA as a great place to do business. SA’s bilateral trade with the UK was worth £8.8bn in 2016 — a 9.2% increase on the previous year. The UK remains SA’s biggest long-term foreign investor, with 45% of SA’s FDI stock originating from the UK. And there are many South African companies active and present in the UK, growing their businesses and sustaining jobs in SA.

We are clear that this strong relationship will continue as the UK leaves the EU. I’m pleased to report that we’re making excellent progress in our discussions to ensure continuity of the regional Economic Partnership Agreement with SA, the other members of the Southern African Customs Union, and Mozambique.

The UK and partners in the region share a common goal of replicating this trade agreement to provide certainty of our trading relationship for businesses, and so that we have a framework that will allow us to build an even closer economic partnership in future.

I’m looking forward to discussing this with Trade and Industry Minister Rob Davies when we meet in Johannesburg this week.

But we can do even better. To improve our already impressive record of working together in business, we need to make it even easier for UK and South African companies to operate in each other’s markets, to overcome any regulatory barriers that make trade more expensive.

There is huge potential, given the complementary nature and shared entrepreneurial spirit of the UK and South African economies. Our companies stand to benefit if we are better able to bring together the home-grown technology and innovation we see being created in SA and the UK. Our shared strong commitment to open trade, democracy and the rule of law gives us the solid foundation from which to build an exciting and prosperous future.

Supporting this ambition is where our post-Brexit relationship can flourish further. Our expertise can be SA’s expertise, and UK companies stand ready to help advance economic transformation for SA’s future. The UK’s export credit agency, UK Export Finance (UKEF) has nearly £3bn available to support UK companies doing business in SA, as well as South African companies looking to buy British goods and services.

And as the UK welcomes a diverse community of 52 Commonwealth nations at next week’s Commonwealth Heads of Government Meeting, including many of SA’s regional partners, I look forward to embracing a future of fair and free trade that we can build together for shared success.

Linklaters PHOTO

Exclusive: Linklaters opens fifth German office to chase banking work

Linklaters will open its fifth office in Hamburg in the first quarter of this year to capitalise on an increase in banking work for German clients.

The firm has made no lateral hires with the launch, instead transferring two existing partners from Frankfurt and Dusseldorf.

Linklaters LLP is a multinational law firm headquartered in London. Founded in 1838, it is a member of the “Magic Circle” of elite British law firms. It currently employs over 2,000 lawyers across 29 offices in 20 countries.

In 2016, Linklaters achieved revenues of £1.31 billion ($1.97 billion) and profits per equity partner of £1.45 million ($2.2 million), making it the world’s fourth highest-grossing law firm, and the most profitable member of the Magic Circle. In the UK, the firm has top-tier rankings across many practice areas, including corporate/M&A, capital markets, litigation, banking and finance, restructuring and insolvency, antitrust and tax. Linklaters counts more FTSE 100 companies among its clients than any other law firm. For direct deals by institutional investors in the first half of 2016, Linklaters tied for first place. In the 2012 Global Elite Brand Index, Linklaters was named the third strongest global law firm brand.

Agustin PHOTO

Bitcoin is a bubble and a Ponzi scheme according to this top banker

The head of the Bank of International Settlements (BIS) has warned that central banks must be prepared to act against cryptocurrencies, which he labeled “a bubble, a Ponzi scheme and an environmental disaster”.

Agustin Carstens, the general manager of the BIS, said bitcoin raises concerns about consumer and investor protection.

“Appropriate authorities have a duty to educate and protect investors and consumers, and need to be prepared to act,” Carstens said during a speech in Frankfurt.

Carstens said digital tokens “masquerading as currencies” must not subvert trust in central banks.

​He described bitcoin as “a combination of a bubble, a Ponzi scheme and an environmental disaster”, with his last point in reference to the huge amount of energy it takes to create the cryptocurrency.

Bitcoin’s price has tanked in the past week, and on Sunday it dropped below $8,000 a coin for the first time since it surpassed that level in November 2017. The asset has been under pressure since the start of the year as the threat of regulatory crackdowns around the world weigh.

Despite the drop in price and the chorus of “cryptocurrency naysayers”, the bitcoin market is actually maturing, according to David Coker, the former vice president of global risk management at Deutsche Bank.

“In truth these events are nothing more than a further sign that the bitcoin market, and cryptocurrencies in general, are maturing; in other words, business as usual and much ado about nothing.”

He explained that the decisions by Lloyds Bank and Virgin Money yesterday to ban credit card purchases of bitcoin and other cryptocurrencies were taken with the view that bitcoin represents a new asset class, exhibiting characteristics of both commodities and currencies.

“Viewed from this perspective, prohibiting credit card customers from charging their purchases of bitcoin makes good sense and is a sign that the market is adapting to the peculiarities of cryptocurrencies, without the need for top down regulation,” said Coker, who now works as a lecturer at the University of Westminster.

Bitcoin continues to yo-yo after a particularly rough month for the notoriously volatile cryptocurrency,

The price dipped back below $8,000 on Sunday morning after briefly surpassing $9,000 earlier on Saturday, the latter being a week high.

Bitcoin has lost more than half its value since hitting an all-time high of more than $19,000 at the end of last year.

The cryptocurrency has landed in the sights of regulators in recent weeks, dampening some of the appetite among investors.

Last week Lloyds became the first major bank in the UK to ban the buying of bitcoin with its credit cards. And Irish banks are the latest to be revealed to be monitoring the situation, following on from others in the UK.

An official from the ECB called it a gold rush with no gold, while finance heads in France and Germany called for a crackdown.