I've been watching that TV drama about cleaners doing insider trading based on overheard conversations. Some of it is a little far-fetched, but the old narrative about the best way to hide works well.
A common guideline is to wear a high-visibility jacket or look like a cleaner. In other words hide in plain sight. I guess it moves around according to exact profession.
As an example: Just suppose Brexit affects share prices and markets. The Prime Minister is steering things, but wait...
Who does she share a home with? Only a relationship manager for one of the largest and most experienced investment management companies in the world, Capital Group, and its UK badged subsidiary Capital Management.
It has the lovely 40 Grosvenor Place, London, SW1X 7GG office address, situated in a sensitive location, facing the gardens of Buckingham Palace.
The actual fund and its various subdivisions are a convenient “Société d’Investissement à Capital Variable” created under the laws of Luxembourg, managed by Capital International Management Company Sàrl (“CIMC”), a company established in Luxembourg.
This is jolly handy because, as the fund guidance states: Under current law and practice, CIMC is not liable to any Luxembourg income tax.
As a Brit trading these funds, except in limited circumstances, you'd also not be subject to any capital gains, income, inheritance or other taxes in Luxembourg.
The role of a CIMC relationship manager is "to ensure the clients are happy with the service and that we understand their goal."
It must be tricky to advise retirement fund clients when the Fund owns, say, 9.7% of all the BAE shares spread over two separate investment categories? That's the BAE that makes the Typhoon Eurofighter and Storm-Shadow missiles used in various recent brutal middle east conflicts.
But I suppose working in an investment advisory environment and sharing a home with one of the people most likely to influence markets doesn't have to raise conflicts of interest.
With recent top level decisions and tactics it is only foreign exchange, the FTSE and some bunches of individual equities that have become skittish.
There's another angle too. Just imagine if the freedoms that a country like Luxembourg deploys on its non-taxation and confidentiality were to be applied to the financial sector in the UK?
Oh. I see. Maybe that's part of the unchanged Plan A Mark III?
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