More security and less fiscal uncertainty. This is what private banking has claimed in a round table organized within the framework of the Madrid Investor Networking Day (MIND), an event that brought together an excellent representation of the financial industry this Thursday in the Spanish capital. The panel, which brought together the heads of Santander, BBVA, Deutsche Bank and Sabadell Urquijo, was moderated by Ángel Alonso, journalist from elEconomista.es specialized in the asset management industry.
“Taxation is basic. Another thing is that it is not the only argument when making investment decisions,” said Fernando Candau, head of Private Banking at Deutsche Bank in Spain. The problem is that “the regulator and the Government are modifying the taxation of products, and we have to adapt and move customers towards products that are efficient for them.” For his part, Francisco Javier García, director of Santander Private Banking Spain, emphasized that a private banking investor, and investors in general, seek favorable taxation, but “The most important thing is that it be predictable and stable taxation. That is what we all demand, and I am convinced that all parties involved will agree on this point.”
Fernando Ruiz, director of Private Banking at BBVA in Spain, agreed with him: “When you invest, especially in the case of private banking clients, you look at the long term, and to do so you need taxation that is predictable also in that long term.” term”, but in his opinion what the entities are managing now “is the short term, and that is the big problem”he added, since to do correct planning “you need stability.”
Xavier Blanquet, deputy general director of Banco Sabadell and Business Director of Sabadell Urquijo Banca Privada, explained that, when providing advice to the client, the first thing is to know their objectives and needs, and that taxation is the way to optimize the way in which said objectives are achieved.
The regulations that changed the regulation of SICAVs It caused many of them to transform, which in turn has generated a boom in family-type venture capital companies (SCR). The success of these vehicles is undoubted, the speakers noted, in part because they enjoy favorable taxation, but they are not an obvious substitute for SICAVs, since they require much higher assets, and are very focused on a single asset. Those responsible for private banking stressed, once again, the idea that in no case should taxation be the main reason for investment.
Open architecture in illiquids
They also talked about alternative assets. “Steps are being taken. A few years ago they were marketed only for institutional investors and today we are also marketing them for retail clients,” said Fernando Ruiz, director of Private Banking at BBVA. Ruiz recalled that the entity is going to lower the access limits for this product from 100,000 euros to 50,000. In illiquid assets, he added, “we have to move towards open architecture, as is already done in liquid assets.” Alternative assets already account for a fifth of pension fund portfolios.
Regarding the convenience of democratize investment in alternativesXavier Blanquet, deputy general director of Banco Sabadell, warned that, although it has to be accessible, this asset has “some contraindications” since it is illiquid and involves investing for a very long term. “In our case, for those clients with smaller amounts, we make this investment through vehicles that mitigate part of these inconveniences.” That said, the alternatives “have to be basic in private banking portfolios,” he noted.
“As to whether or not it is appropriate to lower the minimum amounts, it depends on many factors,” added Francisco Javier García, director of Santander Private Banking Spain, “but, without a doubt, we are going to witness a rapprochement process in which the client may have exposure to private assets, which will be necessary to build a good portfolio” in terms of risk-return.
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