According to AES CEO Sam Instone, ‘We’re delighted to be recognised as the UKs highest ranked financial services company by The Sunday Times Virgin Fast Track 100. To come in as the 11th fastest growing company within all sectors is also something our staff and advisers can be very proud of.

Instone attributes this phenomenal achievement to the company’s core values of professionalism, integrity, knowledge, transparency and fairness, upon which the company is built.

‘It has always been AES’s mission to bring positive change to international financial services, introducing standards where none existed, placing AES decades ahead of our competitors,’ says Instone.

‘It demonstrates that taking a radically different approach to the rest of the industry, being highly professional, 100% transparent and focused on improving both consumer and adviser outcomes is the recipe for long term successful growth.

‘In addition to the industry recognition we have already received, including the Financial Times New Breed Adviser Award, and being shortlisted for Money Marketing awards, being recognised by The Sunday Times Virgin Fast Track 100 is an important credit, which will help everyone stay focused on achieving positive change within our market sector.’

AES is the only international financial services company to be listed. It operates in several jurisdictions around the world, providing financial planning and wealth management services to expatriates living and working in Europe, the Middle East and other international markets.

AES is regulated in all EEA states under both MiFID and the IMD with branches established in Ireland, Spain, Gibraltar, Sweden, Holland, Belgium, Germany, Poland and the UAE.

About AES International:
Having relocated its headquarters to London in 2007, AES International has become a recognised brand for dynamic wealth managers, with offices across the world, including Europe, Middle East and Latin America, offering financial planning, wealth management and private banking services to individuals with specialist cross-border needs. AES is the only international financial services firm to hold such a broad range of local investment and insurance licenses throughout Europe and the Middle East via legitimate branch establishments.

AES International is the trading style of AES Financial Services Limited which is regulated and authorised by the Financial Services Authority in the UK, and is authorised in all EEA member states to give investment advice under the Markets in Financial Instruments Directive (MiFID) and insurance advice under the Insurance Mediation Directive (IMD). AES Middle East Insurance Brokers LLC is wholly owned subsidiary of AES International and is licensed by the UAE Ministry of Economy, United Arab Emirates.

For more information contact:
AES Press Office
pressoffice@aesfinance.com
+44 (0)20 3051 7999

The event was well attended by industry professionals with twenty of the AES team attending with partners or guests. The judges said’, AES had made far greater advances than any other company in embracing new ways of conducting business with particular emphasis on the international and offshore market.’ The Sky News Presenter giving the awards said ‘AES is more of an integrator than an adviser and works with both individuals and companies to really improve both consumer and corporate outcomes.

AES Director Pippa Miller who was responsible for the companies submission said’, this award is testament to the collective achivements of the entire organisation. Our team based approach delivers a hugely differentiated proposition for advisers that has never before been seen in the international and cross-border marketplace. Advisers and advisory companies now have the opportunity to develop a strategic partnership with a 100% transparent and professional organisation’.

Operations Director, John Viney said,’ This international recognition provides a firm base on which to build our service models and offering. We aim to deliver generationally different front, middle and back office services to professional intermediaries that drive their business forward.’

The Award was collected on behalf of the company by AES Managing Director, Sam Instone pictured below.

The AES CEO said ‘the move to direct service in the Middle East represents a wind tunnel of change to the existing marketplace. Our team are hugely committed to introducing positive change by exporting higher technical competency, technology, compliance and conduct of business standards into a market perceived to be some years behind that of Europe in terms of both consumer and adviser outcomes.’

An exciting opportunity has arisen for an administrator to join our International Team. Your primary role will be to provide support to the global network of advisers, ensuring the smooth processing of applications and providing up to date information on client policies. This role is challenging and interesting in equal measure, therefore candidates must be able to prioritise a busy workload – all the time maintaining a professional image and working to support the company’s ethics and business objectives.

AES strongly believes in developing and rewarding our existing employees, and so there are large parameters for future development within this role; all employees receive support and training to gain qualifications, and within AES there are numerous job opportunities both in London and abroad.

We are looking for a diligent individual with excellent communication skills, who has the ability to interpret and explain complex situations both to internal and external parties. Successful applicants must convey enthusiasm and a ‘can do’ attitude. Although prior experience in our field is not necessary we do require applicants to have at least one year of experience in an office environment, and experience in a finance environment will be of considerable benefit.

Key responsibilities and accountabilities will include:

• Client/Adviser interaction (through email and telephone)
• Ensure new business applications are monitored and processed through to completion
• Liaise with product providers on new business applications
• Liaise with global network of financial advisers on clients’ investments
• Problem solving
• Managing confidential and sensitive documents
• Maintain electronic filing systems
• Report processing/tracking etc.
• Respond to emails/phone calls and take appropriate actions
• As you become familiar with the company ethos and prove yourself, the given responsibility will increase considerably.

Key skills required:

• 1 year + experience working in an office environment.
• Ability to communicate to all levels in a professional, clear and confident manner via all correspondence media.
• Attention to detail.
• Confidence to work on your own initiative.
• The ability to work to tight deadlines and to prioritise tasks.
• Confidence and strong interpersonal skills.
• A flexible and adaptable approach to work.
• Willingness to learn and implement new internal work practices/systems.

Salary is variable depending on experience and ability.

MIFID came into being on November the 1st 2007 as a very significant legislative change to EU financial services regulation.

MIFID identified investment advice as an investment service, the provision of which, on a professional basis, generally requires authorisation as an investment firm. According to Article 4(4) investment advice means the provision of personal recommendations to a client, either upon his request or at the initiative of the investment firm in respective or one or more transactions relating to financial instruments. ‘Financial Instruments’ include such things as shares, unit trusts and collective investments schemes.

The UK and Gibraltar secured an opt-out or Article 3 exemption from MIFID for their financial advisers who agreed not to conduct any cross-border business so that they could continue to operate under the Insurance Mediation Directive if they failed to meet the minimum standards required of a MIFID firm. Insurance mediation is defined as ‘the activities of introducing, proposing or carrying out other work preparatory to the conclusion on contracts of insurance, or of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim.’ As a consequence of this all other EEA advisers and non-exempt firms that make personal recommendations that a client would understand as investment advice are automatically subject to MIFID. In contrast advice on life policies from countries within the EEA that contain investment elements that are unit linked i.e. have been ‘unitised’ into units of insurance are subject to the IMD – but portfolio management, advice on life policies containing equities (unless provided by an exempt insurer themself) or the non-unitised collective investment schemes of the type heavily promulgated by international advisers, require MIFID authorisation.

So What?
MIFID introduces a raft of key organisational changes that effect providers and distributors alike. Strategically these cover corporate structure, governance and oversight, policies and procedures and infrastructure. Operationally these impact on issues as far ranging as financial management/capital adequacy, IT systems, data capture, suitability analysis, marketing, risk analysis, compliance, HR, Legal, data management and IT/system organisation.

One of the main purposes of MIFID is to clarify how firms “passport” on a cross border basis or establish a branch in another member state, in each case on the basis of their home state authorisation. This system is mirrored by IMD authorised firms.

Providing services on a ‘cross-border basis’ means delivering services from one state into another. This can happen by way of letter, e-mail or telephone. Firm’s advisors briefly visiting clients in another EEA state may also constitute providing cross-border services. This means that a Cypriot company may phone and advise clients of that firm that are resident in Spain if it holds the requisite authority to do so by way of a Freedom of Services passport. In this example the home state (i.e. Cypriot) organisational and conduct of business requirements apply.

If a firm has agents/advisers living or working within another state then it must establish a branch under Freedom of Establishment rules. Whilst home state rules apply to the firms organisational shape – host state requirements apply to the conduct of business rules which are also known as that country’s ‘general good’ requirement.

As an example a Belgium firm wishing to operate from within the UK must establish a branch which is appropriately registered with their home state regulator (the CBFA), UK Companies House (for tax and legal purposes) and the UK FSA (host state regulator). They must then follow the UKs conduct of business rules (general good) which in this case means things such as commission disclosure and enhanced training and competency. It is for this reason that the concept of UK firms moving overseas and passporting back in after the RDR is pure fallacy – the requirement would still be to meet the general good requirement required by the host states (in this case the UK’s) regulator.

It therefore follows that a firm simply cannot have advisers living and working in one country under a Freedom of Services passport from another country as seems to be the existing prevalent method with Europe. Likewise, to deliver MIFID investment services i.e. investment advice with an IMD license instead of the required MIFID license is equivalent to an unqualified student practicing as a lawyer, doctor, architect or engineer – it is simply professionally, legally, morally and in many cases criminally wrong.

The potential impact of this on the conventional international advisory market is as follows: -
1. Both providers and distributors need to consider fundamental strategic options in order to establish an effective operating model in the post MiFID world. The breaching of this legislation in most EEA countries is at worst a criminal, and at best a civil, offence that may result in fines, bans or more serious sanction. Current regulatory actions by Spanish, Belgian, Dutch and UK regulators are beginning to clarify what has to date been a largely ignored or conveniently termed a ‘grey area’ but by written legislation is in fact nothing of the sort.
2. Consolidation of both product provision and distribution is likely as the economies of scale, resources and expertise required to meet MIFID requirements require enhanced standards. This may improve outcomes for clients, advisers, advisory firms and those providers that make the effort to comply with this legislation. Cottage industry distribution by small IFAs is likely to wither and fail. Whilst some providers still allow unauthorised firms and individuals to place business with them, it is likely that this grey market will simply fade away. A key reason for this is that the litigation when things go wrong is likely to be re-directed from the IFA towards these providers or their onshore parent companies, who are not necessarily themselves in breach but provide a legitimately registered target that cannot simply disappear.

The Future
Despite relatively clear existing guidelines many conventional grey market firms will continue to procrastinate or claim they have not been accurately informed of their regulatory and legal responsibilities. This is simply not the case – guidelines on the provision of investment advice with the EEA are very clear and it is the duty of all firms to ensure they understand these, and are appropriately informed. Not all regulators see things the same way and firms are advised to request local clarification and on-going guidance from their specific home state regulator to keep abreast of changing views.

Since April 2009, the EUs 3L3 Committees have worked together on a report covering Packaged Retail Investment Products (“PRIPS”). This is hoped to clarify for once and for all the regulatory framework for investments packaged as life insurance policies (ie. unit linked life cover) which are subject to financial market fluctuations. It is widely expected that the outcome will be to bring the distribution of this last product class (those insurance products that don’t contain equities or collectives investment scheme) in parallel to those of the MIFID Regime.

The overall outcome is that the traditional black and grey methods of operating in markets such as Europe are well and truly finished and a new framework for conducting business will ensure better results for clients, distributors and providers alike.

AES International Managing Director appears on BBC Panorama explaining the way the pension packaging process works.  He said “an advisers charges are explicit due to the disclosure regime – rather like the tip of an iceburg.  However, the total cost is hidden under the water and contains life insurance, fund, banking and dealing charges’.