Q1/2015
During the last quarter of 2014 and the first
quarter of 2015 our Partnership has been
fortunate to experience not only massive
exponential growth, but also to enter into
excellent new commercial relationships
with new Limited Partners. Of course along
with this growth comes extra responsibility,
additional reporting requirements and a higher
level of corporate governance and compliance.
Furthermore, many of our “high-producing”
Limited Partners were asking us for more
qualified and expert help in the field of regulated
financial products and promotions.
the appointment of two new Directors to
the Board of the General Partner, Privilege
Wealth Management Limited: A new Sales
and Marketing Director, and a new Corporate
Governance and Compliance Director. As is our
norm, the Partnership always endeavours to
fulfil its vacancies from within the ranks of our
own Partners, and we are especially pleased to
report that both appointments have come from
Limited Partners of our Partnership, continuing
the pattern of internal management and control
with outsourced specialist providers.
We are very confident that alongside Mark
It has been a very long search to find the right Munnelly ACA (a Chartered Accountant) and
people with the experience and qualifications Peter Stokes BA LLB LLM (our in-house legal
necessary to take our Partnership to the counsel and Director of our Helix program),
next level, especially as the General Partner our two new Directors will bring a wealth of
also has the responsibility of administering knowledge and experience to compliment the
and managing the Partnership on behalf of Board of Directors of the General Partner, and
the Limited Partners too. With this in mind please join us in welcoming them to Privilege
we are extremely pleased to announce Wealth.
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Contents
Appointment of New Sales and Marketing Director
to the board of the General Partner
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Appointment of New Corporate Governance and
Compliance Director to the board of the General Partner
6
New Products7
New Limited Partner, Share Capital and Introducers’
Agreement rules 10
Future Plans12
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Q1/2015
Appointment Of New Sales And Marketing
Director To The Board Of The General Partner
Taking into account the high level of Authorised
and Regulated investments and financial
instruments that the Partnership deals with,
it seemed logical that our “wish-list” would
include:
• A currently authorised and regulated
Independent Financial Advisor (IFA).
• A great deal of experience in a wide arena
of financial services, including pension and
hedge funds.
• An existing wide network of introducers of
his/her own.
• An understanding of the current global
financial economic climate and GFSC/
FCA/MiFID legislation.
• Most importantly, a “safe pair of hands”
who agrees with our main corporate tenet
of solid and secure organic growth.
on the brave”. Andrew Sweeney had worked
very closely with one of our Limited Partners
for some time, and therefore already had a very
good grasp of the Partnership’s products and
services. His qualifications and experience
were impeccable and the synergies were
obvious from our very first meeting; the
problem was that he worked with one of our
Limited Partners! Sometime later, and after
some costly negotiation, we are happy to report
that Andrew has joined us, and we would like
to take this opportunity to thank those Limited
Partners for a) permitting the appointment and
b) for all their help in getting us to this point.
Andrew has worked in the financial services
industry in the UK for 22 years. Initially he
joined the pension mutual company (NPI)
via its graduate training programme. He was
appointed as an Account Manager, firstly in
A considerable list of requirements and not Edinburgh before transferring to Liverpool
an easy task! But sometimes “fortune smiles as a Senior Consultant responsible for the
“ But sometimes “fortune smiles on the brave”. ”
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Andrew has built up an excellent understanding of the medium to
long-term investment markets, especially in the authorized and
regulated sectors.
promotion of products and services to key
intermediaries. Andrew left NPI to establish
his own business as an Independent Financial
Adviser (IFA) in 1997, and has now been a
regulated and authorised UK IFA for 18 years.
In combining his corporate and entrepreneurial
experience with a large variety of companies,
from SME to large PLCs, Andrew has built up
an excellent understanding of the medium to
long-term investment markets, especially in the
authorized and regulated sectors. During the
last few years Andrew has acted as a consultant
to various investment companies in terms of
assisting them with their sales and marketing
operations; especially in the development of
new regulated products and the development
of distribution channels and routes to market
for those products and the companies that
offer them.
It was in this role that Privilege Wealth
and Andrew first met, and it became
immediately apparent that his experience and
entrepreneurial flair made him ideally suited to
promote Privilege Wealth products via a global
distribution network in his role as Group Sales
and Marketing Director.
We wish Andrew every success in his
endeavours, and hope you will all make
contact with Andrew in the near future. In the
next 90 days Andrew will be visiting; London,
Amsterdam, Panama, Dubai, United States and
Marbella, if you would like to get together in
any of these locations please contact Andrew
accordingly.
Sales and Marketing Director
Andrew Sweeney
Andrew.Sweeney@ PrivilegeWealthLP.com
Cell: +34 674 570 007
[email protected]
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Q1/2015
Appointment of New Corporate Governance
and Compliance Director to the board of the
General PartneR
“Regardless of your thoughts on banking and transactional privacy, we believe that every
financial institution should know exactly who they are dealing with, where they are based
and what is the source of their funds. “
One of the pitfalls of such meteoric corporate
growth is that everyone gets caught in the flow,
and attention to detail can suffer as a result.
dealing with, the source of their funds and the
jurisdiction of their Limited Partner and its bank
account.
In the new global regime that seems to
be emerging (or at the very least is being
aggressively promoted by Europe and the
US) banking, confidentiality, tax structure
and financial privacy are not necessarily your
guaranteed human rights. It is also true to
say that global terrorism is also taking its toll
on personal freedoms due to “Anti-MoneyLaundering” procedures. Of course we value
privacy as highly as the next person, and will
always, when within the law, endeavour to keep
financial data and beneficial ownership private
and confidential, as we believe that this is a
basic right of every company and individual
entrusting us with their business. However, it
is also our requirement, and indeed we believe
our responsibility, to know whom we are
With the above-mentioned in mind CorporateGovernance and Compliance are now more
important that ever, and it became apparent
that we needed a specialist in the field of fund
management and administration.
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One of the more productive Limited Partners
of Privilege Wealth is in the business of fund
administration, and is extremely active in the
international banking and financial services
sectors. Once again, Privilege Wealth found
itself drawing on its relationships with its own
Limited Partners to fulfil a Board requirement
of the General Partner.
Minette Compson is an FSC licensed
Experienced Investor Fund Director and
[email protected]
a qualified accountant with an excellent
track record in fund administration and
management. Her experience as the Head
Management Accountant for ABN AMRO in
the Netherlands, Senior Fund Accountant for
Helvetica Fund Administration and Director of
Fund Administration at Castle Trust Gibraltar
led to her being headhunted to take up the
position as Managing Director of Whitmill Fund
Administration in Gibraltar.
With Minette’s extensive knowledge of the
international banking and financial services
sector Privilege Wealth feels itself extremely
fortunate to have secured her position on the
board of the General Partner. As before, we
wish to thank those Limited Partners involved
for the time and effort involved in bringing
Minette’s appointment to fruition.
We welcome Minette to Privilege Wealth, and
although her mandate is very much a behindthe-scenes governance and compliance post,
we are sure that in her “policing role” you will
all get to know her very well in the coming year.
Should you have any compliance or governance
queries, or indeed require assistance with
international payment, banking or incorporation
services please do not hesitate to contact
Minette on:
Governance and Compliance Director
Minette Compson
[email protected]
Cell: +34 659 026 909
New Products
Some of our Limited Partners are already well
entrenched in marketing our new product
range, and some of you have yet to enquire.
We set out a list of our new product structure
below, with a brief timeline and explanation on
both the Luxembourg and Gibraltar “Listings”.
There are various ways in which a security can
be considered “Listed” depending upon where,
with which listing authority, and in what capacity
the instrument is listed. We set out below the
various financial instruments available and
where, when and how they will be shown as
“Listed” or not as the case may be.
Regular updates will be shown on the “Partners”
section of the Partnership’s website from time to
time in order that Limited Partners, Introducers
and other interested parties may ascertain
at which juncture each financial instrument
stands. (Please bear in mind that just because
an instrument has been accepted for listing,
does not mean that it will immediately show
on the relative platform or exchange, it can
sometimes take 2-4 weeks for the names to
show in the actual exchange listings themselves
notwithstanding the fact that everything has
been signed off and completed.)
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Q1/2015
As many of you know Privilege Wealth has gone through a very aggressive growth phase, and
in this respect finds itself waiting for administration and compliance issues to be completed in
larger and more slowly-moving institutions. Therefore, although we are confident that everything
has been completed, it can sometimes take time for the various “Listings” to actually show on the
relevant exchanges.
FTDA - E / Fixed Term Dividend Agreement
MCLN - D / Multi-Currency Loan Note
• Recently updated to include all four classes
of recipient, and is now multi-currency
(£-€-$)
• Is also now issued as a record of all profitshare and remuneration due to Limited
Partners and Introducers
• Available wet-ink immediately, digitally
online in 2 weeks.
• Variable rate of return (01.00% per annum
to 40.00% per annum)
• Income Product - Paid Quarterly
• Variable term (12 – 60 months)
• Redeemable – 12 month anniversary with
30 day notice.
• Uninsured
• Generic Term Sheet now adapted for multicurrency use (£-€-$)
• Voting rights now amended to allow for
multi- currency, available in Series A, B & C
• Available wet-ink immediately, digitally
online in 2 weeks
• Variable rate of return (06.00% per annum
to 12.00% per annum)
• Income Product - Paid Quarterly.
• Variable term (12 – 60 months)
• Redeemable – 12 month anniversary with
30 day notice
• Insured
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EMTN - Tranche C - EUR Loan Note
EMTN - Tranche A / Lux - USD Loan Note
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ISIN listed
Helix listed with NAV available on FundNav
Bloomberg and Telekurs tickers available
Société Générale acting as settlement and
Listing Agent
Clearstream listing expected April 2015
Financial Times listing April 2015
Legal Opinion from Luxembourg legal
counsel on product.
Fixed rate of return (12.00% per annum)
Income Product – Paid Quarterly
Fixed Term (60 months)
Redeemable – Upon maturity date.
Insured
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ISIN listed
Helix listed with NAV available on FundNav
Bloomberg and Telekurs tickers available
Société Générale acting as settlement and
Listing Agent
Clearstream listing expected April 2015
Financial Times listing April 2015
Legal Opinion from Luxembourg legal
counsel on product.
Fixed rate of return (12.00% per annum)
Income Product – Paid Quarterly
Variable term (12 – 60 months)
Redeemable – 12 month anniversary with
30 day notice.
Insured
PIF - E
EMTN - Tranche B / Lux - GBP Standard Asset
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ISIN listed
Helix listed with NAV available on FundNav
Bloomberg and Telekurs tickers available
Société Générale acting as settlement and
Listing Agent
Clearstream listing expected April 2015
Financial Times listing April 2015
Legal Opinion from Luxembourg legal
counsel on product.
Legal Opinion from UK legal counsel as to
“Standard Asset”
Fixed rate of return (09.85% per annum)
Income Product – Paid Quarterly
Redeemable – 12 month anniversary with
30 day notice.
Insured
• ISIN should be available April/May 2015
• Available for inward investment April/May
2015.
• Listed on Gibraltar Exchange shortly
thereafter.
• Fixed rate of return (10.00% per annum)
Growth Product
• Variable term (12 – 60 months)
We currently foresee only one more product being issued, and that is our “retail-market” product.
Although preliminary work has started it is a very big project, and we do not see the product
being ready before August 2015. It will however immediately give access to investments from
£100 and upwards.
Obviously due to the new products and the costs involved in administering them, some remuneration
agreements will change. In this respect, every existing Limited Partner will be required to sign the
2015 Introducer’s Agreement.
[email protected]
9
Q1/2015
New Limited Partner, Share Capital and
Introducers’ Agreement rules
As from the 1st April 2015 all Limited Partners
who are also “Introducers” shall be required to
sign the “2015 Introducer’s Agreement” and the
2015 “Limited Partnership Agreement”.
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of 100,000 (£,€,$), failure to do so will
result in cancelation of application or
membership.
Share Capital contribution shall be made
within 14 days of signing Stage 2 (Limited
The Partnership has a high-number of
Partnership Agreement), or application will
incomplete applications whereupon KYC,
be cancelled.
AML or the Share Capital requirement has • Share Capital contribution is reduced
not been fulfilled. Furthermore in some cases
to £500.00 (five hundred pounds), and
Introductions have been listed without the third
assumes that the Introduced Party will
parties’ knowledge or consent, or simply the
register their interest in either their own
application was authorized some time ago, and
personal name or in the name of their own
the party involved simply never performed.
existing body-corporate.
• In the event the Introduced Party / envisaged
In addition new products and services require
Limited Partner requires any of the following
new profit-share agreements, and these too
services they will be invoiced by Privilege
need to be agreed between Limited Partners,
Wealth separately:
Introducers and the General Partner.
• Incorporation of Trust, Limited
Company or Corporation in a variety of
The main changes are (no changes are
jurisdictions.
retroactive):
• Arrangement of banking facilities.
• Arrangement of Visa or Mastercard
• All remuneration will only be paid upon Free
payment and process facilities.
Funds (ie the 80% residual amount after all
• Accounting or Trust services.
insurance premiums and capitalization are
paid).
• A commission and profit-share structure in
terms of the new Helix and Fund products
is now included in the 2015 Introducer’s
Agreement.
• A fixed hierarchy and structure of
Limited Partners and override profitshare percentages is now featured in the
Introducer’s Agreement.
• Any Introducer introduced by a Limited
Partner will have 3 months to complete
• the entire Limited Partner application,
compliance and registration process and
to pay their share capital contribution, after
which, should they remain in default their
application will be cancelled.
• Any new introduced party that applies to
become a Limited Partner has 4 months
within which to introduce a minimum
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11
Q1/2015
Future Plans
New Website for Privilege Wealth
IT Based Promotion
Due to the highly secure nature of the
Partnership’s website, it is difficult to allow very
much sales, marketing and promotion content.
Of course there is also the matter of financial
promotion legislation.
Privilege Wealth is
therefore in the process of designing a new
“front-end” user-friendly website in order that
qualified and prospective Limited Partners and
Introducers may understand what we do and
how we do it in a more structured and simple
manner.
In contrast, the Partnership is currently
producing a video animation of “the pitch”, it will
explain exactly what Privilege Wealth does, how
it makes profit and the security and processes
involved. A new team of cyber-agents will be
contacting wealth managers, family offices
and financial institutions to show the animated
presentation live on the prospective clients
desktop.
New Brochure
Audit
A new set of hard copy brochures and wet-ink Mark Munnelly has taken the decision to
agreements will be produced in the second process quarterly management accounts via
quarter of 2015, in order that those “less IT our auditors KPMG.
literate” amongst us, may do business face-toface with a quill!
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Acquisitions/Mergers etc.
Attention to detail, strengths, weaknesses and
perception.
It has come to our attention that some of our
associates find it difficult to comprehend
how a) we can own our own insurance cell,
b) insure ourselves and c) even when they do
understand it, find it extremely difficult to get
over objections and queries as to the insurance
component of our products. Furthermore,
some less sophisticated investors perceive it
as a possible weak area of our business model
(notwithstanding the fact that Re-insurance is
always purchased from third-party “A-Rated”
insurers). Therefore during the next trading
period, it is highly likely that Privilege Wealth
Management Limited may simply divest itself of
its own insurance cell, and purchase cover on
an arm’s length transaction basis. We feel this
is much simpler and easier to understand.
On the opposite end of the spectrum, as
Privilege Wealth becomes stronger in the Pay-
Day and Pawn brokering market sectors, we are
taking increasingly larger security measures.
Our standard On-going Funding Agreement
with any Pay-Day lender involves us taking
default security to include:
• The signed resignation of all Directors
• The signed transfer of 100% of the
shareholding in the Pay-Day lender
• The lodging of all secure-sever passwords
In effect, in the case of a default we would
immediately own the company, have walk-in
rights, and simply collect the debtor’s. As the
capital loaned by Privilege Wealth to the PayDay lender only equates to approximately 20%
of the combined value of the debtors’ books, we
are obviously extremely secure in our capital
debt (that is why we can get insured so easily).
There is only one possible way that Privilege
Wealth could be more secure, and that would
be in owning and running its own operation, and
we could well see an acquisition or two in the
coming year in this regard.
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Q1/2015
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[email protected] +44 (0) 203 582 3810
www.PrivilegeWealthLP.com 186 Main Street, Gibraltar
[email protected]