Through a new partnership with Payit by NatWest, with the help of their adviser, clients will be able to make top-up payments quickly and easily, direct from their bank accounts. The new functionality reduces the time it takes for their money to be invested on the Parmenion platform – and makes the process of clients sending money to the platform more secure.

This is the start of a wider move towards simpler ways to make payments – Parmenion said it will expand the capability to simplify how clients withdraw money, and they’re working with advisers to understand how open banking payment technology can support greater efficiency in the future.

Payit is an open banking technology from NatWest that enables payments through the online bank of a client’s choice using a QR code. Clients don’t have to bank with NatWest to be able to access it, nor do they require a mobile banking app, as the tool also works with online banking.

Adding the new functionality is part of Parmenion’s commitment to constantly enhancing the service they provide, making it easier for advisers and their clients to invest.

In recent research into the impact of poor platform service, conducted in conjunction with the Lang Cat, 82% of advisers said that poor service has a significant impact on their day to day working lives. Parmenion is committed to improving that picture through their own development capability and by partnering with businesses like Natwest, who are harnessing the power of open banking to deliver a better digital experience for clients.

Parmenion also continues to make improvements to client reporting, providing advisers with the flexibility to tailor reports for their clients. In response to adviser feedback, they have also introduced tiered adviser charging, with client grouping capability now live.

Parmenion chief marketing officer Sarah Lyons said: “We want to make it as simple and intuitive as possible for people to top up their investments whenever they like. As strong believers in the power of technology, we wanted to embrace the Open Banking revolution to make top ups even easier by adding the Payit tool to the platform.

“It is also important not to exclude clients who may not be as comfortable with online and mobile banking, so of course we will still allow investment account top-ups via the traditional methods of bank transfers and cheque.

Ritu Sehgal, head of transaction services and trade at NatWest said: “We are delighted to help Parmenion leverage the benefits of open banking through Payit by Natwest, enabling clients to top up their investment accounts in a simple and streamlined way. By giving their IFAs access to the service, Parmenion’s customers can add funds quickly to their accounts whilst ensuring a secure transaction.”

BOCOM is the fifth largest bank in China and the fifth Chinese bank to open an office in DIFC. Currently home to more than 45 Chinese corporates, DIFC has also received interest from a number of banks, securities firms from China and Hong Kong, who are looking to expand in the region.

The DIFC branch of BOCOM will be used to promote economic, trade and investment cooperation between China and the MEASA region by fully leveraging its regional advantages and the comprehensive strategic partnership between the two countries. Today, China stands as Dubai’s largest trading partner.

The opening coincides with the 40th anniversary of diplomatic ties between the UAE and China, as well as the twentieth anniversary of the establishment of DIFC.

BOCOM was founded in 1908 and is listed on the Hong Kong and Shanghai Stock Exchanges, identified as a Global Systemically Important Bank, and ranked ninth in the world’s Top 1000 Major Banks in terms of Tier 1 capital by The Banker magazine. As of June 2024, BOCOM’s overseas institutions’ assets were RMB 1.24trn, which weighed in 8.79% of total assets. Currently, BOCOM has established 24 overseas institutions, forming a service network covering six continents and major international financial hubs worldwide.

Jiming Xu, chairman of the board of supervisors of BOCOM, said: “DIFC is a leading international financial hub in the Middle East, Africa and South Asia region and BOCOM is privileged to be part of DIFC’s dynamic ecosystem. Leveraging DIFC’s strategic positioning, the Bank looks forward to exploring new opportunities driven by the region’s rapid growth and the expanding collaboration between China and the UAE.”

Arif Amiri, chief executive officer of DIFC Authority, said: “We are delighted to welcome Bank of Communications to DIFC at a time when the bank is seeking access to the vast opportunities that exist between the UAE and China. They now join an integral part of the thriving ecosystem of more than 230 banks, and 27 of the 29 globally systemically important banks who use DIFC as a platform to benefit from Dubai’s strategic time zone, supportive legal and regulatory environment, and access to the region’s largest pool of financial services talent. We look forward to driving the future of finance with the Bank of Communications.”

Other Chinese banks with regional headquarters in the Centre include Agricultural Bank of China, Bank of China, China Construction Bank Corporation and Industrial and Commercial Bank of China.

In July 2024, they launched a consultation to determine whether the EU should repurpose specific micro-prudential instruments or introduce new macroprudential requirements.

In its response, EFAMA stressed that Europe needs more holistic and rigorous analyses to determine where financial stability risks lie in the system before developing new macroprudential policies for capital markets.

While the discussion is undoubtedly important, it also comes at a critical juncture when the EU is trying to grow its capital markets and develop innovative solutions to address pressing societal challenges such as the pension and climate finance gaps.

The consultation is officially about NBFI, however the main focus is unfortunately on asset management. Investment funds have proven resilient thanks to a robust existing regulatory framework. The recent UCITS/AIFMD review, which entered into force in April 2024, will further increase the sector’s resilience, introducing mandatory liquidity management tools, leverage limits for private credit funds, and additional reporting requirements.

Building on these premises, EFAMA makes the following recommendations to address some of the Commission’s concerns around risks in capital markets:
• Focus the policy discussion on capital markets rather than on the illusive ‘non-bank financial intermediation’ category.
• Develop an accurate analytical framework to identify potential pockets of risk that require further attention.
• Foster EU macroprudential supervisory capabilities, including through better data exchange among banking, insurance, and securities supervisors. Insufficient data sharing among these authorities results in insufficiently rigorous financial stability analyses.
• Introduce targeted capital market reforms by i) developing a consolidated tape for fixed-income securities and equities, ii) broadening the range of collateral that can be used to settle variation margin calls in centrally cleared markets, and iii) relieving constraints on dealers’ balance sheets during periods of stress.
• Resist introducing macroprudential measures to ensure that markets behave counter-cyclically during periods of stress (e.g., by tinkering with liquidity buffers).

Tanguy van de Werve, EFAMA director general, said: “Whether it is the growing pension gap or the environmental transition, Europe faces many unprecedented challenges. Asset management is part of the solution. We channel monies in a vast array of asset classes, from equities to fixed income to infrastructure, that will require additional investments in the coming years.

“However, for this to succeed, macroprudential authorities must accept that capital markets are different from, and inherently more volatile than, the banking market and avoid applying bank-like regulation to our industry. Their policies need to be fit for purpose and not redundant.”

Marin Capelle, EFAMA regulatory policy advisor, said: “Recent market disruptions have demonstrated that we need to apply a holistic lens when assessing financial stability. Unfortunately, many authorities continue to approach the topic with pre-determined and narrowly focused outcomes in mind, which prevents them from asking the right questions.”

The UK regulator said this followed Barclays’ decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal.

Karl Foster, Fintech and Financial Services Partner at law firm Spencer West LLP commented: “Both parties appear to have drawn a line under the matter with the withdrawal of the appeal and acceptance of a fine on Barclays side and a reduction of the fine on the FCA’s.

“The FCA expects firms that it regulates to deal with it in an “open and cooperative” manner with an express obligation on firms to disclose anything that a regulator would reasonably expect notice.

“In addition, the FCA has a primary objective to ensure market integrity and whilst the circumstances were unprecedented during the financial crisis, nevertheless the requirement for integrity remains.

Foster further said: “This matter reminds us of the lack of accountability and sense of invulnerability of banks at that time that led to the financial crisis, LIBOR and other scandals.

“Whilst there may be sound legal reasons for Barclays not accepting the FCA’s position in its statement in this matter – as any good litigation lawyer will remind us – nevertheless the lack of humility in withdrawing the appeal takes us back to those times.”

Read the story about the fine here, published earlier today on sister brand Investment International.

The UK headquartered global group said it was also simplifying its geographic structure with the creation of Eastern markets and Western markets divisions , while also appointing Pam Kaur as its new chief financial officer.

HSBC group chief executive officer, Georges Elhedery said: “The changes that we are announcing today will make it easier for our colleagues to serve our customers and drive the future success of the Group. The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged.

“I am excited about the opportunities ahead of us and firmly believe that this structure sets us up to deliver the next phase of growth. Our home markets of the UK and Hong Kong, together with our corporate and institutional banking as well as our wealth and Premier banking businesses, are the core strengths of HSBC.

“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow. This is how we will fast forward our plans to execute our strategy, unleash the full potential of the bank and ensure our talented colleagues can thrive, and deliver best in class products and service excellence, for our customers. When our customers succeed, so do we.”

From 1 January 2025, HSBC said it will operate through four businesses with clear lines of
responsibility:
1. Hong Kong
2. UK
3. Corporate and Institutional Banking
4. International Wealth and Premier Banking

The changes, it said, “will reduce the duplication of processes and decision making that are built into the
current structure and will result in greater alignment and agility in serving our customers. The Group’s
functions will be realigned to support the four new businesses”.

In reaction, Susannah Streeter, head of money and markets, Hargreaves Lansdown said: ’The new CEO Georges Elhedery has moved swiftly to put his own corporate stamp on HSBC, with a restructuring drive which focuses on elevating the growth levers in the business. Second quarter revenues got a significant boost from the fees generated in its wealth business, so creating a new division to focus on high and ultra net worth accounts is aimed at capitalising on further potential that this area of the business promises.

“HSBC is long been on an Asian pivot, but it’s not gone far enough for a section of the investor base, who have wanted to see the business spin out its Asian operations. This has been repeatedly rebuffed, and with Mr Eldhedery maintaining that the bank’s strategic priorities remain unchanged, splitting its operations into Eastern markets and Western markets division does not seem to indicate that a hiving off is on the cards.

“Instead, cost-cutting is a big driver of these changes, with fresh efficiencies likely through the simplification of its geographical structures and the merger of its commercial and institutional banking operations. Pam Kaur is likely to be seen as a safe pair of hands as the new Group CFO, given she’s been at the bank for more than a decade in numerous financial leadership roles.

“Shareholder reaction to these moves has been muted, with a shift in focus on wealth management largely expected, and the restructure of the senior management team not ruffling any feathers. Given the bank’s big Asia focus, China’s economy is still a concern. There are ongoing challenges in in the Chinese commercial real estate market, and although management has indicated the worst has come and gone, concerns are still lingering about how far the planned stimulus form authorities will really move the dial on sentiment.’’