Financial Update- Newsletter August 2019

General News

Once again, there has been no shortage of talking points over the last 3 months where politics and markets are concerned.

The UK has a new Prime Minister, with Boris Johnson (or “BoJo”) taking Theresa May´s place at the head of the Conservative party. Boris went head-to-head with other frontrunner Jeremy Hunt, although in truth, this never seemed to be a fair fight, and Mr Johnson inevitably took the vast majority of votes – causing no great surprise.

What this change in Prime Minister means for the UK is anyone´s guess. Almost immediately after Boris was confirmed as the new PM, there was speculation that he might suspend parliament in the weeks leading up to the October BREXIT deadline. This would have meant Parliament being unable to “block” a hard Brexit and leaving without some sort of deal. This, however, was swiftly seen to by Parliament who blocked the potential suspension in advance.

Boris remains fairly bullish when speaking about Brexit and the need to leave…

Pension Legislation Changes - Malta

Malta remains as one of the world´s leading jurisdiction for pension business and the jurisdiction, its
policy makers and industry, are determined to maintain that position by offering well regulated,
compliant and prudent pension products.

There have, however, been a number of legislative changes to Maltese pensions since the start of
2019, ranging from tighter investment due diligence to full disclosure of commission. For advisers
and clients, one of the most important measures introduced is the requirement for advisers to have
greater regulation than ever before.

Investment advisers, in addition to having to be licensed/authorised to provide investment advice in
the country where the adviser firm is established, must also be duly authorised and regulated to
provide the investment advice being given to the member, in the member´s respective jurisdiction.
For European based investment advisers and members, the rules require that the adviser will need
to be duly regulated to give investment adv…
General News

Over the last 3 months, we have seen the strong performance of equities continue from the start of the calendar year. The first quarter of 2019 was a great period for investors, with all major indices posting significant gains.

The US market, rebounding off December lows, experienced their best start to a year since 1987. Market volatility came down sharply as robust US jobs data, the possibility of a trade truce between the world´s two largest economies and the Fed´s signal of a slower path of rate rises, contributed to the bounce back in global stocks.

The reason behind the December lows and the subsequent recovery in Q1 of 2019, not just in the US, but also in many global markets worldwide, was down to valuations. Based on expected earnings over the coming year, in the last quarter of 2018, stock valuations dropped down to the lowest level we have seen since 2013. As such, stocks become for want of a better word, “cheap”.

There was also a tailwind from interest rates.…

Quarterly Update 2019-01-31

General News

Well, where do we begin? It has certainly been an interesting quarter, with endless developments on Brexit (“the gift that keeps on giving”), the ongoing tariff disagreements between the US and China, and the increasing problems Italy and their economy are experiencing. 

Brexit, without doubt, is the most known and spoken about topic, as we simply cannot get away from the news – even if we wanted to. This is also the most relevant subject to the majority of us living here in Spain, as, depending on the outcome, it could have a direct impact on us, especially if there is a no-deal scenario. This, as we know, is not a certainty and there are many people who still believe that the UK will not leave the EU if there is a strong campaign for a second referendum.

Over the past 3 months we have seen Theresa May suffer a humiliating defeat in the House of Commons, which led Mr Corbyn to table a vote of no confidence. The PM survived the vote of no confidence the following day, a…

Modelo 720 Explained

The Modelo 720 is an informative declaration made to the Spanish authorities advising them of any asset an individual holds outside of Spain, with a value of 50.000€ or more. This declaration has to be made before the 31st March and is in relation to the value of the assets as of the 31st December the previous calendar year. Any asset held within Spain does not need to be declared as it will already be known to authorities.

Modelo 720 has 3 reporting categories, split into bank accounts, investments and immovable property and the limit of 50.000€ applies to each. If the asset in question is in a different currency, the exchange rate will determine whether or not there is a need to declare. For example, if an individual has 30,000 pounds in a UK bank account, this would not need to be declared as with the current exchange rate, this would be equivalent to approximately 33,000€ and therefore short of the 50.000€ requirement.

Many individuals have bank accounts or investments that are held…

Welcome to our third quarterly newsletter


Welcome to our third quarterly newsletter. A lot has happened in the market this quarter so we will try and cover the main topics.As always, if there is anything we have missed and you would like us to cover in our next update, please do not hesitate in letting us know.

Global Markets

During the third quarter of 2018, we have seen some of the highest volatility in markets since the financial crash in 2008. October has a tradition of being a fairly unstable month in terms of investments and markets, and it well and truly lived up to its reputation.

In the last 3 months we have seen falls in all major worldwide markets including the FTSE 100 (UK) -7.87%, the EuroStoxx 50 (Europe) -9.58%, the S&P 500 (US) -4.34% and the Hang Seng China Enterprises (China) -8.76%.

After reaching all time highs in May, the FTSE 100 (top 100 UK companies) was one of the first to suffer this quarter as Brexit volatility continued following several resignations from Theresa May’s Conservative …
How do I register as a resident in Spain? As an EU citizen you must register as a resident if you plan on living in Spain for more than 3 months.
If you are here for a total of 183 days in a calendar year then you are classed as being a tax resident of Spain and should be registered as resident.

You should register in person at the Oficina de Extranjeros (immigration office) in the province where you live or at the designated police station.
You will be required to provide documents to support your application which currently is:

NIE – your foreigner’s tax numberThe form S1 if you are a pensioner, SIPP card or proof of private health insuranceConfirmation of payment for the residencia in the bankThe completed residency application formPassportProof of income
You must be able to demonstrate that your life in Spain is financially sustainable. You will be expected to show bank statements that cover the previous three months and that you have a monthly income of above €800 per person…