News / Actual Comments Weichs Consulting

Here we inform from time to time our clientel about strategic consequences which result out of changes of markets, regulations, legal requirements etc. in our core consulting fields and about actual news about us or about the market we advise.

Weichs Management Consultants are not any how liabel for the correctness of the underlying information nor for the derived suggestions and advice.

• Officially Basel III regulations should be realized world wide in 2018/19. In reeality the German regulator BAFIN and the Swiss Nationalbank demand already now core capital according Basel III or more in a lot of cases. meanwhile Basel IV is in preparation. This is manifesting the general trend to more and more regulation of the bank industry.This ends in stronger requirements of the banks when granting loans regarding LTV and covenants. For bank clients therefore financing concepts are favorable which are independent from banks like i.e. capital increases back stopped or directly performed by financial investors, corporate finance REITS (see publications), or bond concepts .
• Solvency II is a similar stress for the insurance industry for equity requirements of investments and the asset and risk management. In connection with new rules and regulations due to the German Capital Investment Act and the implementation of the EU directive AIFM (Alternative Investments in Financial Markets) some formerly popular investments and assets become too expensive and unproductive. Innovative and products conform to Solvency II will roll up the market. (see attachement below)
• Also classic investment advisors and asset managers are regulated and controlled more and more by the new AIFM regulations, what creates huge costs and restricts former flexibility. Umbrella Concepts in joint ventures with larger companies or in a lot cases of smaller asset managers a total retreat from specific businesses meanwhile lead to a strong shake-out of the market.
• Also non and near banks included hedge funds and private equity funds will be regulated much stronger in future. Their initiators need to find regulated vehicles with similar or other advantages to remain succesful.
• Since 2015 EU regulations are in discussion that commercial and private banking has to be separated from investment banking to reduce risk exposures and financial support of the state. The German federal government already has presented an according novellation which we still judge mainly as a discussion paper than the final version.