The “asset management” tool that is typically called “Managed Account” abroad is one of the most versatile tools that can be had, albeit with some small flaws that should be highlighted wealth management company.
- a) The first flaw that comes to mind is the management and performance feesare subject to VAT .
The brilliant interpretation of some judge in 2009 (if I remember correctly) defined that asset management, being investment services and not products, had to be subject to VAT, effectively creating a totally anomalousstandard wealth management services.
Anomalous because typically banking and financial services are exempt from VAT.
When I exchange Euros for Dollars, I do not pay VAT on the commission; when I make a transfer I don’t pay VAT on the commission; when I buy a mutual fund, there is no VAT on the fund management fees inside.
If I have a managed account and I buy and sell funds or securities, I do not pay VAT on transactions.
The second weak point of asset management is the scarce versatility in managing derivative instruments.
While funds, ETFs and in some way also securities can be divided among the various adherents to the management line, derivatives, having typically high amounts in value and not being able to be split into numbers after the decimal point, are difficult to manage ( although I know of cases that use them successfully).
Let me explain better, if I have 100 customers who have purchased the management line and I buy 20 shares of a fund, I can give 0.20 shares each.