Finance Update 2012
On Thursday 8 November we organized Finance Update 2012 with the striking title:
‘Investment Strategies under New Market Powers’
Date: Thursday 8 November 2012
Location: Castle Woerden
Time: 13:00 pm -17:00 pm (followed by our Network Event)
- Three top speakers
- Presence of professionals from the Securities Operations industry
- Up to date theme: “Investment Strategies under New Market Powers”
- Forum discussion with guest speakers
- Possibility to attend our Networking Event
- At a top location: Castle Woerden
Prof. P.J.W. Duffhues MSc. – Professor Emeritus in Enterprise Finance, Tilburg University
Harry Geels MSc. CIP – Director Research at Inmaxxa and trainer at ML Finance Academy
Boudewijn van Zijl MSc. – from De Nederlandsche Bank (Dutch Bank)
Subject: “Investment Strategies under New Market Powers”
The economic environment of companies has drastically changed since 2007. Investors in shares, bonds, currencies and derivatives have to take into account turbulent financial markets in which the increasing systemic risk has caused a huge concern. The on-going Euro crisis is a good example of this new reality. The result is that the balance of power between investors, companies, governments and supervisors has changed in a way we could have never imagined. Also on the financial markets these powers have changed drastically and the quality of rating agencies is a real point of discussion. One could even doubt if there is still a free price mechanism, especially in the interest markets which are submerged by interventions of the authorities. In 2012, the image of the total financial sector is worldwide under discussion. Governance problems in the financial sector form also an important part of this discussion: reward programs have been a frequent exponent in a lot of debates. Regulation (national and international) is a recurring point of interest under these changed market powers. To invest has never been so hard, although it is of major importance to the economy. The coverage levels of pension funds are extremely low.
In my introduction of today, I will describe the abovementioned developments as a starting point for the lectures of the other guest speakers.
Prof. Piet J.W. Duffhues MSc.
Professor Emeritus in Enterprise Finance Tilburg University
Subject: “How Many Rules Do You Want?”
This and next year, more than ten new regulation packages will be introduced: UCITS, Mifid, Basel III and IV, Solvency 2, AIFMD/ESMA guidelines for automated trading, and EMIR (new regulations for OTC-trading). Furthermore, employees in integrity sensitive positions need to take the Banking and Finance oath.
Big question is why those regulations are introduced only now; and what the results will be of such a (over)regulation. Will it change the way of investing? Will it prevent fraud in the financial world? Another important question is if supervisors do not always work in a procyclic way, although it would be better to work countercyclical. But is that possible, countercyclical supervision and control? Despite the more precise regulations, there is still a lot of uncertainty in the financial markets. There is a paradox: the current regulations seem to be a result of better controlling the situation. But it seems that this objective is not yet a concern of the investors.
So the last question is if the right measurements are being applied. Shouldnâ€™t we change the whole (banking) system?
I would like to give a short overview of how (and with what kind of rules) supervisors could change and remodel the financial world.
Harry Geels MSc. CIP
Trainer at ML Finance Academy; Director Research Inmaxxa and trainer ML Finance; registered asset manager
Subject: “This Is How DNB Executes Investment Research”
This presentation gives a short impression of how DNB executes an investment research of pension funds within the current legal framework.
I will discuss how DNB meets the open standards which apply to prudent persons and honest & stable business management.
In illustration of the above, I will discuss generic good and bad practices which DNB has encountered in the investment researches executed as part of the theme research Innovative Investments and the request Private Equity & Hedge Funds.
Boudewijn J. van Zijl MSc.
Supervisor specialist at De Nederlandsche Bank (Dutch Bank) in the department Expert Research Centre Risk and Asset & Liability Management of the division Control & Supervision over Pension Funds and Investment Companies.