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Proposed tax changes for those taking pension funds abroad

By Pension funds No Comments

Through Siphelele Dludla August 18, 2021

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THE GOVERNMENT has proposed changes to the tax law that could have important implications for members of pension funds who wish to transfer their savings abroad.

The National Treasury yesterday proposed changes that could allow the SA Revenue Service (Sars) to subject interest on pension funds to tax when an individual ceases to be a South African tax resident.

Currently, South Africa can waive its tax rights when people become tax residents of another country before or when they retire.

Informing Parliament’s Standing Committee on Finance, the Treasury said the rules were changed last year and a three-year moratorium was in place for people who were no longer South African tax residents. , before they can access their retirement savings.

The Treasury’s chief director for economic tax analysis, Chris Axelson, said that according to double taxation agreements, that money, if taken, might not be taxable in South Africa at all.

Axelson, however, said it was different for people who stay as South African tax residents, who can only access their money once they’re 55 or older.

“Thus, individuals would have benefited from a total tax deduction on the amount paid into the retirement fund. They would have enjoyed tax-free growth on the investments in the pension fund, and when they left the country they would not pay any taxes either, ”Axelson said.

“It really gets rid of our tax rights on these types of assets, so we’re trying to fix that.

“The proposition we are saying is that when an individual ceases to be a South African tax resident, we will consider that a tax must be paid on the day before he ceases to be a resident.

“But we’re not actually asking that the tax be paid at that time, so it can be deferred. This is the same regime or the same treatment as you do for capital gains tax.

As a result, Axelson said the Treasury had proposed a two-pronged approach for both withdrawals and amounts retired.

“If an individual were to retire prior to retirement or death, the individual will be deemed to have ceded his stake in this pension fund on the day before he ceases to be a South African tax resident, and the interest will part of that person’s assets, and they won’t need to make a payment, ”he said.

“However, if they do make a withdrawal after three years of being a non-resident for tax purposes, they will then have to pay a tax that was applicable on this amount the day before their termination, using the tax tables on withdrawals in force at time, plus interest.

Jenny Gordon, head of technical investment advice for Alexander Forbes, said the wording of the proposed section 9HC was inadequate and did not give effect to the intent of the explanatory memorandum. Therefore, Gordon said, it was unlikely to be successfully implemented on March 1, 2022.

“The legislation that would be necessary to give effect to this type of provision is complex, and many other provisions of the Income Tax Act, the Tax Administration Act and the Pension Funds Act should be modified at the same time, in addition to the Sars processes. . It was not proposed in the bill, ”Gordon said.

“We are engaging with regulators in written submissions and hearings on the bill, with the intention of reaching consensus for a workable solution.”

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“No plans to allow pension funds to invest in startups”

By Pension funds No Comments

Supratim Bandyopadhyay, chairman of the Pension Fund Development and Regulation Authority (PFRDA), said there were no immediate plans to enable pension funds, including the national pension system, to d ‘invest in startups. The response comes amid reports the government may allow Life Insurance Corp. of India (LIC) and the Employees’ Provident Fund Organization (EPFO) to invest in startups.

Bandyopadhyay, however, said the proposal was not ruled out, but it was difficult to determine the right valuation for a startup.

“NPS pension funds report a daily NAV (net asset value) unlike EPFO ​​and LIC,” he added.

Last month, the regulator gave conditional approval to pension funds to invest in initial public offerings (IPOs). Pension funds can invest in IPOs with sales of shares of at least ??500 crores. The market value of the company after the IPO is also expected to be among the top 200 companies in India.

The number of private sector subscribers to the NPS has exceeded 3 million, Bandyopadhyay revealed. Big fintech players have also started distributing to NPS, including Paytm Money, Bandyopadhyay said. Zerodha also plans to work with PFRDA as an NPS intermediary, he added. The number of private sector subscribers also rebounded by almost 50% in fiscal 22 compared to the previous year. A total of 241,000 private sector subscribers joined NPS in fiscal year 22 through August 12, up from 160,000 last year.

NPS intermediaries called points of presence (PoP) charge 0.25% per contribution to the NPS. The pension fund regulator recently allowed PoPs to hire individual agents to distribute the NPS. However, no decision has been made on compensation, Bandyopadhyay said. NPS has generated returns of 12.94% over the past 12 years for its equity programs, 9.92% for its corporate bond programs and 9.4% for its corporate bond programs. State over the past 12 years, added Bandyopadhyay.

The PFRDA also broadened the investment universe of M&O segment equities with a market capitalization of ??5,000 crore to the top 200 companies on BSE and ESN to allow pension funds to derive returns from a wider range of stocks. Subscribers also benefit from a tax deduction of ??1.5 lakh for investment in NPS Tier 1 under section 80 C and ??50,000 for investment in NPS Tier 2 under section 80 CCD (1B).

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Assistant Director of Corporate Finance – Cambridge job with AJ Chambers

By Corporate finance No Comments

Executive assistant in corporate finance

Cambridge

£ 50,000 + (DOE)

AJ Chambers is excited to be working alongside a leading, growing, independent Cambridge-based company that is looking for an Associate Director of Corporate Finance to join its growing team.

The role:

This new Assistant Director position in Corporate Finance is an exciting opportunity to join a dynamic and ambitious practice in Cambridge, working with business owners, management teams and private equity firms on transactions of a worth £ 1 million to £ 50 million. Preparation and participation in directors’ meetings

  • Analyze financial statements, management information, financial forecasts and market information
  • Preparation of key customer deliverables, including information memorandum and financial models
  • Undertake research on potential buyers, market trends, comparable transactions and new potential customers
  • Manage and act as a transaction leader on small transactions.
  • Attend meetings with clients and work closely with associates and directors.
  • Develop transaction information for marketing purposes
  • Management of initiatives to target and win new business
  • Preparation of competitive offers and formal presentations
  • Maintain an appropriate network of peers in intermediaries, banks and private equity firms.
  • Other ad hoc advisory assignments, particularly in the area of ​​due diligence.
  • Perform other duties that fall within the scope, spirit and purpose of the role

The ideal candidate:

  • Fully Qualified Accountant
  • Exposure and knowledge of the full cycle of mergers and acquisitions.
  • Work experience in corporate finance
  • Strong interpersonal skills and emotional intelligence
  • Technical excellence in accounting
  • Good general business knowledge

What’s in it for you?

  • Competitive salary
  • 3: 2 hybrid work desk: remote work and flexible hours available
  • Modern and spacious office ideally located in Cambridge, with bar in the office and coffee machine
  • Platoon on site
  • Free parking
  • Pension
  • Private health care for all and reimbursement program
  • Health and wellness care program (eye costs, individual counseling, general practitioner, wellness)
  • Discretionary bonus
  • Employee referral program
  • 25 (depending on function) bank holidays + bank holidays. It increases with promotion and / or service.
  • Perks at Work platform offering several discounts and gifts
  • Fully funded continuing education
  • Endless CPD (including payment of professional contributions)
  • A committed local CSR program

If you think this is right for you, please apply directly or contact Danny Brown at AJ Chambers.

Executive assistant in corporate finance

Cambridge

£ 50,000 + (DOE)

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Corporate Finance Officer – Cambridge job with AJ Chambers

By Corporate finance No Comments

Corporate Finance Manager

Cambridge

Up to £ 45,000 + (DOE)

AJ Chambers is excited to be working alongside a leading, growing, independent Cambridge-based company looking for a Corporate Finance Manager to join its growing team.

The role:

This new corporate finance executive position would be suitable for a proactive and ambitious individual to join Cambridge’s high performing and supportive corporate finance (CF) team. This new CF Executive role is an exciting opportunity to join a dynamic and ambitious practice, working with business owners, management teams and private equity firms on transactions worth £ 1million. to £ 50million. The ideal candidate will be someone newly or recently qualified and willing to get into corporate finance. You may or may not have a background in corporate finance, but what is essential is the desire to advance and master your career and to show an interest and enthusiasm for people and business. You will work closely with the team and gain experience in the work we do with business owners and managers, working primarily on business sales, business buyouts and fundraising. private equity funds. The successful candidate will be able to demonstrate a commercial and proactive spirit while working collaboratively within a team.

  • Analyze financial statements, management information, financial forecasts and market information
  • Preparation of key customer deliverables, including information memorandum and financial models
  • Undertake research on potential buyers, market trends, comparable transactions and new potential customers
  • Manage and act as a transaction leader on small transactions.
  • Attend meetings with clients and work closely with associates and directors.
  • Develop transaction information for marketing purposes
  • Management of initiatives to target and win new business
  • Preparation of competitive offers and formal presentations
  • Maintain an appropriate network of peers in intermediaries, banks and private equity firms.
  • Other ad hoc advisory assignments, particularly in the area of ​​due diligence.
  • Perform other duties that fall within the scope, spirit and purpose of the role

The ideal candidate:

  • Fully Qualified Accountant
  • Knowledge of the full cycle of mergers and acquisitions.
  • Strong interpersonal skills and emotional intelligence
  • Technical excellence in accounting
  • Good general business knowledge

What’s in it for you?

  • Competitive salary
  • 3: 2 hybrid work desk: remote work and flexible hours available
  • Modern and spacious office ideally located in Cambridge, with bar in the office and coffee machine
  • Platoon on site
  • Free parking
  • Pension
  • Private health care for all and reimbursement program
  • Health and wellness care program (eye costs, individual counseling, general practitioner, wellness)
  • Discretionary bonus
  • Employee referral program
  • 25 (depending on function) bank holidays + bank holidays. It increases with promotion and / or service.
  • Perks at Work platform offering several discounts and gifts
  • Fully funded continuing education
  • Endless CPD (including payment of professional contributions)
  • A committed local CSR program

If you think this is right for you, please apply directly or contact Danny Brown at AJ Chambers.

Corporate Finance Manager

Cambridge

Up to £ 45,000 + (DOE)

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Employees potentially lost pension funds due to actions of Nottingham call center manager

By Pension funds No Comments

A former Nottingham call center manager is banned from running a business for the next eight years due to pension plan negligence.

Philip James Hopkinson, 47, ran Target Source Media at Landmark Tudor Square, which initially operated as a call center from November 2011, focused on buying and selling data, Business Live reports.

He then transferred this management of occupational pensions to a third party less than a year later.

Over the next five months, members of the public transferred more than £ 200,000 into the pension scheme which remained unregistered, in violation of the Pensions Act 2004.

The government said that Hopkinson later admitted that he had never met or spoken with those he appointed or verified their ability or experience in administering a pension plan to ensure that members’ funds potentials were properly invested and the risk to members would be minimized.

In June 2017, Hopkinson resigned as director of Target Source Media but remained as an employee for an additional two to three months and helped clear the transfer of members’ funds out of the pension plan’s bank account.

In addition, at the time of Target Source Media’s liquidation in 2018, the company had separate debts of over £ 65,000, according to a statement from The Insolvency Service.

As a result of his investigation, Hopkinson signed an eight-year disqualification pledge that began in June.

Neil North, Chief Insolvency Service Investigator, said: “Mr Hopkinson failed in his duties as a director of a limited liability company and, as a result, members of the public were needlessly endangered and potentially lost funds from their occupational pensions.

“In such cases, the Insolvency Department will not hesitate to take steps to remove the privilege of limited liability status from such persons.”

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Ice cream, politics and pension funds are not a winning recipe

By Pension funds No Comments

The boards of state pension funds are not the best place to debate Israeli-Palestinian policy. It may sound like a blatant statement, but these debates are exactly what is happening in states like Illinois, new York and Texas.

The impetus for this unusual mix of global politics and management of public employee pensions was, above all, the decision of ice cream maker Ben & Jerry to withdraw its products from the West Bank in solidarity with the Palestinians. Yes, state pension funds are considering selling their shares in body wash conglomerate Unilever – which owns Ben & Jerrys – due to this escalating dispute.

And while a number of simple ‘rocky road’ or ‘half-baked’ puns might be needed here, there is a seriousness to this situation that shouldn’t be underestimated.

There are some $ 5,000 billion in money currently managed by pension funds for state and local governments across the United States. Roughly 60 percent of that money is managed through various types of stocks and mutual funds, including companies like Unilever.

The primary responsibility of pension fund administrators is to maximize returns on the investments of the millions and billions of dollars under their control. This is accomplished by making long term investment decisions that generate maximum returns. The political and social interests of those who oversee these pension systems should never be a factor when deciding how best to manage public workers’ money.

Pension fund managers sometimes have to make investment choices that are socially unpopular but still represent the best financial interests of public officials’ assets.

There are times when sound investment decisions can be aligned with socially popular politics, but opponents of Ben & Jerry’s failed to make this point. Governor of Florida Ron DeSantisRon DeSantisSchool’s Mask Battle Takes Texas AP Tells DeSantis to Stop Assistant’s “Harassing Behavior”, for example, spoke only of his pro-Israel position in a statement announcing that the state had placed the Fortune 500 company on its list of “companies scrutinized”. Worse yet, the state’s investment manager, in his statement, failed to reconcile the governor’s decision with his duty to bolster the retirement accounts of thousands of civil servants.

The Sunshine State is far from alone in this there are 35 states with laws that cater to companies that engage in boycott, divestment and sanctioning activities – these laws, however, are not based on sound fiscal logic but rather on geopolitical motives. And the problem extends beyond Israeli policy.

Illinois has an Investment Policy Board whose sole purpose is to keep state pension funds out of companies that do business with Iran and Sudan, or boycott Israel. Many states are still weighing on the divestment of any company based in China, which would mean withdrawing stocks from investments in the world’s second-largest economy. Even texas pass a law it would force state pension funds to divest from companies that themselves use social or environmental factors to make business and investment decisions – a reversal of policy, but still very political.

The bigger problem here is that short-term political incentives threaten the returns on investment needed to fund the pensions promised to teachers, firefighters and city workers. Administrations change and the social and political views of a governor may not match those of his successor.

Pension funds should not be subject to the personal opinions of all who take office – the primary goal when managing pension fund assets should be to maximize the returns on that money.

Bringing politics into the investment management equation simply cannot work without causing problems. For example, what policy should decide how the pension fund weighs on complicated issues like Israeli settlements in the West Bank? There are bound to be a lot of officials in Illinois or New York who are on different sides of this debate and who don’t want their money (which goes into the future) to be used to support an opposing political position.

No matter where your policy on these issues lands, it should be ridiculous to you. The board members and staff of the bipartisan nonprofit organization that I manage also have different political views on these issues. But we all agree that it would be inappropriate for state governments to leverage their pension funds to engage in these political debates. It is not about good fiduciary management of the money entrusted to them by public servants for the future payment of guaranteed retirement income.

Anthony Randazzo is Executive Director of the Equable Institute, a bipartisan, nonprofit organization that works to support sustainable public pension systems without sacrificing income security.


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Mesirow Public Finance Expands Team and Strengthens National Presence with Launch of Maryland Office

By Public finance No Comments

CHICAGO, August 11, 2021 / PRNewswire / – Mesirow Financial Holdings, Inc. (“Mesirow” or the “Company”), an independent employee-owned financial services company, announced today Chris Sheehan and Jeff wilke have joined respectively as Managing Director and Director within Mesirow Public Finance. Situated at Maryland, Chris and Jeff will focus on serving municipal clients and developers in the State of Maryland and other states along the east coast, marking the sixth U.S. urban center from which Mesirow Public Finance operates.

“We are delighted to open our Maryland office with the hires of Chris and Jeff, ”said Todd Waldrop, Senior Managing Director and Head of Public Finances of Mesirow. “By bringing significant banking experience to the Mid-Atlantic region, they will help expand our presence in the United States and strengthen our ability to finance major investment and infrastructure projects through innovative debt financing. “

Chris joins Mesirow from Stifel, where he served as Director of Public Finance and Principal Banker or Co-Lead on Economic Development and Redevelopment Finance across the country, including launching the first public bond in the State of Maine. Chris is active with the Urban Land Institute, is a member of the Baltimore Chapter of Lambda Alpha International, the Maryland Government Finance Officers Association and the Municipal Bond Club of Baltimore. He also sits on the Board of Directors of the Council of Development Finance Agencies.

Prior to joining Mesirow, Jeff worked as Director of Bond Financing for the Maryland Economic Development Corporation (“MEDCO”), where he was responsible for overseeing its municipal bond program. There he managed to close $ 3.5 billion in tax-exempt and taxable income bonds with ratings ranging from triple A to unrated across a variety of structures and in several asset classes, including public-private partnerships such as the Seagirt marine terminal, the Purple Line light rail and the University of Maryland Public service infrastructure projects. Additionally, Jeff has managed seventeen of the bond financed properties owned and leased by MEDCO. Jeff sits on the Board of Directors and as Treasurer of Baltimore Community Lending and is a Life Member of the Leadership Maryland Program.

About Mesirow Public Finances
Mesirow Public Finance has a long tradition of providing objective professional services to a diverse group of public sector clients. The team’s regional bankers, located in six major cities across the United States, maintain day-to-day relationships with clients and coordinate their specific financial needs. Over the past two years, the Public Finance team has acted as an underwriter on more than $ 38 billion public sector negotiated financing transactions. To learn more, visit mesirow.com/publicfinance.

About Mesirow
Mesirow is an independent, employee-owned financial services company founded in 1937. Based in Chicago with offices around the world, we serve our clients with a personal and personalized approach to achieve their financial goals and act as a force for social good. With capabilities spanning global investment management, capital markets and investment banking and advisory services, we invest in what matters: our clients, our communities and our culture. To learn more, visit mesirow.com and follow us on LinkedIn.

Mesirow was recently named one of the best places to work Chicago through Crain’s Business in Chicago and one of the best places to work by Chicago Tribune.

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The Mesirow name and logo are registered service marks of Mesirow Financial Holdings, Inc. © 2021. All rights reserved. Securities offered through FINRA, SIPC, member of Mesirow Financial, Inc ..

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Britons warn of over-sending paypal scams | Personal Finances | Finance

By Personal finance No Comments

Fraudsters are still trying to get their hands on Brits hard earned money through various scams, so social media users often share their experiences to warn others. @Noahxboa exposed how crooks use Paypal to target innocent people.

Noah explained, “Once I return this money, the crooks will file a complaint with PayPal saying their account has been compromised.

“They will say they never intended to send money in the first place.”

Paypal will then ask the seller to return any money received by the recipient, leaving the seller out of pocket and in front of more money than expected.

Even though the seller has not yet shipped the purchased item, they still lost the “overpayment” amount they returned.

DO NOT MISS

Paypal has a section on its website warning people about potential scam attempts.

It highlights a number of common scam tactics that people need to watch out for.

This includes the claim that a person has been paid too much.

PayPal said, “Scammers may try to convince you that you have been paid more than you are owed.

Many cases of fraud occur because sellers don’t know the warning signs to watch out for.

If a person knows what to look for, hopefully they can exercise caution.

It will help people protect themselves from crooks, thieves and hackers.

People can sign up for PayPal’s seller protection program, and PayPal will monitor transactions for any signs of fraud.

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Groupe Claro welcomes Bill Fasel to its Corporate Finance & Restructuring Services division

By Corporate finance No Comments

CHICAGO–(COMMERCIAL THREAD) – The Claro group (“Claro”) welcomes Bill Fasel as Managing Director of the Corporate Finance & Restructuring Services division. Mr. Fasel will be based in Claro’s Chicago office and will leverage the firm’s complex litigation, investigation and insurance claims expertise to provide turnaround and restructuring, performance improvement services. and advising underperforming and struggling companies as well as their creditors, lenders and other key elements.

Mr. Fasel has over 25 years of advisory experience assisting multinational and mid-market clients with corporate restructuring, corporate transformation, corporate finance and strategic advisory issues. He has provided a range of financial advisory and mergers and acquisitions services to corporations, debtors, lenders, unsecured creditors and private equity firms.

Mr. Fasel has led numerous assignments related to the assessment and improvement of short-term liquidity, the creation and analysis of recovery plans, assistance to clients in recapitalization and restructuring operations. merger and acquisition and conducting due diligence investigations.

Managing Director and Practice Leader Doug Brickley expressed his enthusiasm for this strategic addition, saying, “We are delighted to expand our Corporate Finance & Restructuring Services practice in the Midwest, and very pleased to welcome Bill to the Midwest. our team. Bill’s extensive experience serving clients in a variety of industries on turnaround initiatives, crisis management, and corporate finance issues will be essential in increasing our restructuring capabilities both locally and nationally and in driving growth. strategic growth of Claro.

Prior to joining Claro, Mr. Fasel held senior positions in several professional services firms, including the Corporate Finance group of Grant Thornton, the Business Restructuring Services practice of PwC, the corporate restructuring group of Deloitte and Huron Consulting Group.

About Claro: Founded by former partners of the accounting and consulting firm “Big 5”, The Claro Group, LLC (“Claro”) is a highly respected private financial and economic consultancy firm. Claro provides analytics and solutions for high-stakes litigation, investigations, insurance claims, corporate finance and restructuring, government contracts and the technology solutions that support them. Our offices are located in Chicago, Houston, Los Angeles, Washington, DC and Austin.

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A group of pension funds loses its offer to lead the Green Dot dispute

By Pension funds No Comments

  • Judge says funds with smaller losses can’t beat larger shareholder
  • Appoint a New York fund to take the case against a FinTech company

The company and law firm names shown above are generated automatically based on the text of the article. We are improving this functionality as we continue to test and develop in beta. We appreciate comments, which you can provide using the comments tab on the right of the page.

(Reuters) – A California federal judge has rejected an offer by three pension funds to partner up and lead a shareholder dispute against fintech company Green Dot Corp, dismissing the idea that small investors could unite their forces to overcome a bigger one.

Instead, U.S. District Judge Dean Pregerson in Los Angeles ruled on Friday that a New York pension fund should take the reins in the proposed class action lawsuit alleging that the prepaid debit card company misled investors about its 2018 revenue and growth prospects. The company has yet to respond to the complaint.

The New York Hotel Trades Council & Hotel Association of New York City Inc pension fund alleges it lost $ 663,000 on its Green Dot holdings.

The Massachusetts and Pennsylvania pension fund group claimed losses totaling $ 1.1 million.

Lawyers for Berman Tabacco and Labaton Sucharow, who represent the group, and Robbins Geller Rudman & Dowd, who represent the New York fund, did not immediately respond to requests for comment on Monday.

Under the Private Securities Litigation Reform Act, the principal plaintiff is presumed to be the investor, or group of investors, with the largest loss which is otherwise typical and adequate to represent the class.

The lead role involves a potentially lucrative senior advisor appointment for investor lawyers.

In rejecting the group’s offer to conduct the case, Pregerson acknowledged that judges appointed groups of investors in some cases where the offer was not contested or the group contained an investor who claimed to have lost more than any individual candidate.

But the judge said there was no precedent for a group of independent investors to come together to create the greatest financial interest in a case where the group members individually lost less than other suitors.

The 9th U.S. Court of Appeals recently overturned an Arizona judge’s ruling denying a group of investors the lead role. In this case, two of the group’s individual investors had alleged losses greater than any other candidate.

The case is Koffsmon v. Green Dot Corporation et al., US District Court, Central District of California, No. 19-10701.

For the group of investors: Nicole Lavallee, Joseph Tabacco Jr and Jeffrey Rocha of Berman Tabacco and Christopher Keller, Eric Belfi and Francis McConville of Labaton Sucharow.

For the New York fund: Danielle Myers, Tricia McCormick and Juan Carlos Sanchez of Robbins Geller Rudman & Dowd.

Read more:

Nikola’s investors get second chance for lead role in lawsuit

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