NEWS & VIEWS
FSL’s Chain Mail is a regular blog containing links to news articles that we think are worth sharing. In this edition, we look at the financial services industry’s predictions for tax, wealth management, banking, investment, technology and ESG in 2024.
Taxation & Interest Rates
2024 will see the implementation of a new set of tax rules for large multinationals in jurisdictions across the world.
The Financial Times reports on the OECD’s agreements for a minimum corporation tax on large businesses. The FT also shares the predictions of leading economists that central banks are ready to cut interest rates in 2024. Investors and economists stated that falling inflation suggests that prices are under control and increases the likelihood of rate cuts. And according to Investment Week’s article, featuring several prominent fund managers, the potential changes to interest rates will influence all private market asset classes in 2024.
Banking & Wealth Management Industry
Following the passing of the Financial Services & Markets Act last June, 2024 is predicted to see a swathe of new UK regulations causing a divergence from current EU legislation, such as between the EU and UK’s MiFID regimes. Investment Week spoke with a number of experts that shared their opinions on how the 2024 political landscape could shape the financial services industry. These included a number of upcoming elections in the UK, US and European Parliaments, as well as updates on current regulatory frameworks.
WealthBriefing conveys the views of the Global CIO at DWS that ten topics he thinks will be most relevant to investors in 2024. These include female finance, cryptocurrencies, electrification, the circular economy, Asia Pacific, artificial intelligence, and India.
Private Banker International’s article provides the views from Temenos and five key trends that they think will shape wealth management in 2024. These are the continuing adoption of ESG, persona-based segmentation of clients, new offerings for female investors, tokenisation and global mobility. Similar trends were also identified by Futurist Bernard Marr in his Forbes article examining the biggest banking and financial services trends for 2024.
FT Adviser shared the predictions of Embark Group CEO for an increase in white labelled platforms caused by advisor consolidation during 2024, as well as the views of the MD of Gunner & Co on how regulatory changes such as the proposed “polluter pays” rules could mean a decrease in M&A activity in 2024. Citywire spoke with the CEOs from Mirabaud, Nordea and PGIM who shared their hopes, dreams and fears for 2024. Money Marketing discussed what 2024 might have in store for advisers and in particular the continues impact of Consumer Duty.
Investments
Citywire shared the views of six major fund management firms and seven portfolio managers on what 2024 has in store with recommendations on where to invest.
The FT provided a ‘comprehensive round-up of 2024 investment outlook reports’ with over 30 links to publicly available reports that outline their company recommendations for 2024.
CCN examined whether 2024 would be the year for tokenised securities. The article highlights how major banking players planning to go live with new tokenised products during 2024 and the pioneer exchange platforms.
Technology
As with last year, AI is predicted to be a big influence on 2024. This Forbes article talks about the key trends to watch for AI in 2024 including the battle between open and closed AI systems, AI energy usage and regulation.
US online industry magazine, WealthManagement.com took a closer look at the likely tech trends in wealth management in 2024. Their experts highlighted tech stack integration, new fee model software, the increasingly diverse applications being used by advisors and the continued spread of AI.
Finextra included an article from Capgemini on the Top Trends that the Banking and Fintech industry will see in 2024. This long list included much of the topics mentioned in the previous articles but also added Intelligent Automation, embedded financial solutions, quantum computing, Regtech and the metaverse.
ESG
Responsible Investor examined EU regulations in 2024 with the “implementation and streamlining of existing rules… EU elections in June and the implications for the sustainable finance agenda”.
Raconteur’s article writes about the sustainability trends for 2024 highlights the need for businesses to “think longer-term on sustainability while facing short-term pressure on their top line”, prepare for new regulations and importantly, get communication right. A Bloomberg article looks passed COP28 and the agreement to move away from fossil fuels with ‘Transition Finance’ in 2024. And lastly, the Fintech Times shared the thoughts of fintech CEOs and industry leaders on 2023’s key ESG takeaways and what will be top of the ESG agenda in 2024.