www.wealthandfinance-news.com Q1 2025
AI Global Media, Ltd. (AI) takes reasonable measures to ensure the quality of the information on this web site. However, AI will not assume any legal liability or responsibility for the accuracy, correctness or completeness of any information that is available through this web site. If errors are brought to our attention, we will try to correct them. The information available through the website and our partner publications is for your general information and use and is not intended to address any particular finance or investment requirements. In particular, the information does not constitute any form of advice or recommendation by us or any of our partner publications and is not intended to be relied upon by users in making or refraining from making any investment or financial decisions. Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility. Editor’s Letter Editorial Team Sofi Parry, Senior Editor | Joshua Beardsmore, Writer | Kita Thomas, Writer Design Team Emma Hunt, Creative Team Manager | Lauren Baldwin, Graphic Designer Welcome to the Q1 edition of Wealth & Finance International Magazine. As always, with every issue we endeavour to provide fund managers, alongside institutional and private investors with the very latest industry news in the traditional and alternative investment spheres. We have already witnessed a wide range of advancing industry conditions, news, developments, in addition to company arrivals and departures this year. As the year progresses and spring approaches, we search everywhere for inspiration. Here, we have a diverse range of ambitious companies who are constantly looking for new methods to be successful. With artificial intelligence at the forefront of the sector, some of these companies have fully gone digital but all continue to add the all-important human touch. Many people have long anticipated this, while others believe that the current situation of the globe has just accelerated it. There has been a significant need for digitalisation, virtual meetings, data capture, and other features as more people work from home or isolate themselves. We invite you to peruse our Q1 issue as we unveil our prestigious awardees and their successes, as well as presenting our news features highlighting excellence and developments across niche and traditional financial areas. Sofi Parry, Senior Editor
Contents 4. Dallas Accounting and Finance Executive Search Firm Expands 5. Greenberg Traurig Continues to Expand Private Wealth Services Practice Across Western Region 6. New Capital Link: Best Boutique Alternative Investment Firm 2024 7. Closing the ‘Tax Gap’: More Businesses than Ever to Face HMRC Investigations 8. Commercial Cyberattacks Reach an All-Time High 9. Cybersecurity Trends of 2025: What the Experts Expect to See 10. Maximising Wealth Preservation with Family Investment Companies
NEWS Dallas Accounting and Finance Executive Search Firm Expands Frontline Source Group, a leading national executive search firm specializing in accounting and finance recruitment, announced the strategic appointment of Marco Gonzalez as Director of Executive Search, Accounting and Finance Division. This key leadership addition reinforces Frontline’s position as Dallas’s premier executive search partner for financial leadership talent. Frontline Source Group, a leading national executive search firm specializing in accounting and finance recruitment, announced the strategic appointment of Marco Gonzalez as Director of Executive Search, Accounting and Finance Division. This key leadership addition reinforces Frontline’s position as Dallas’s premier executive search partner for financial leadership talent. “Marco’s appointment significantly enhances our executive search capabilities, but also our staffing agency services, in the Dallas Fort Worth area and nationwide,” said Bill Kasko, President of Frontline Source Group. “His proven track record in financial executive recruitment and deep understanding of the accounting and finance sector strengthens our ability to meet the evolving leadership needs of our clients within the executive search and professional staffing sectors.” Gonzalez brings distinguished expertise in C-suite financial executive recruitment, with an impressive portfolio of successful placements across Fortune 500 companies and private equity portfolio firms. His relationship-driven approach to executive search aligns with Frontline’s commitment to delivering exceptional talent solutions through deep industry understanding and personalized service. “Marco’s relationship-first approach to executive search perfectly aligns with our firm’s values and vision for growth,” said Shelly Hubble, Executive Vice President at Frontline Source Group. “His expertise in financial leadership recruitment, combined with his genuine commitment to understanding both client and candidate needs, will be instrumental in expanding our executive search practice and the integration of our professional staffing services.” Drawing from his background in accounting and finance, combined with extensive experience in both retained and contingency search methodologies, Gonzalez employs a sophisticated approach to executive recruitment. His philosophy, inspired by Theodore Roosevelt’s wisdom that “People don’t care how much you know until they know how much you care,” has consistently delivered exceptional results in C-suite and senior leadership placements. “Joining Frontline Source Group presents an exciting opportunity to enhance executive search services in the accounting and finance sector,” said Gonzalez. “Our team’s focus on relationship-driven recruitment and deep industry expertise enables us to deliver unparalleled leadership talent solutions to organizations across Texas and nationwide.” As Director of Executive Search, Gonzalez will lead Frontline’s expansion of executive placement capabilities while maintaining the firm’s hallmark personalized service excellence. His expertise encompasses CFO searches, senior finance leadership recruitment, and C-suite talent acquisition for both established corporations and growing organizations. About Frontline Source Group: Founded in 2004 by President and CEO Bill Kasko, Frontline Source Group stands as one of the nation’s fastest-growing executive search firms. Our success stems from our commitment to building strong partnerships with clients and operating as an extension of their internal hiring teams. Frontline specializes in executive search and professional recruitment for accounting, finance, and other critical business functions.
NEWS Greenberg Traurig Continues to Expand Private Wealth Services Practice Across Western Region Global law firm Greenberg Traurig, LLP further expanded its Private Wealth Services Practice with the key addition of Of Counsel Jennifer M.K. Willis in the Las Vegas office. Willis focuses her practice on the creation of, administration, and litigation surrounding trusts and estates. She has deep experience assisting high-net-worth individuals with estate planning, trust and probate administration, and related litigation, offering clients skilled guidance in the transfer and management of their assets. Willis further offers counsel on business succession planning, charitable gift and estate tax strategies, and guardianship administration. “Jennifer’s creativity in handling complex estate planning and litigation matters is truly remarkable,” said Michael J. Bonner and Jim Mace, comanaging shareholders of the firm’s Las Vegas office, in a joint statement. “Her ability to navigate intricate legal issues and offer innovative solutions makes her an invaluable asset to our team and our clients.” Willis’s broad understanding of the estate planning legal landscape – especiall in Nevada, a favorable jurisdiction for trust administration – allows her to advise institutional trustees on jurisdictional changes that benefit the trust while maintaining the intent of the original document. She joins the firm from Hutchison & Steffen, a Nevada-based law firm. Greenberg Traurig has grown its Private Wealth Services Practice exponentially in recent months, adding a five-attorney group in San Diego led by Shareholders Michelle Graham, Rebecca O’Toole, and Catherine Swafford; Chair of the Tax-Exempt Organizations & Philanthropy Practice Erika Mayshar, who is based in both the Orange County and Los Angeles offices; and, in addition to its western offices, the firm has also added a three-attorney team led by Shareholders Brian G. Smith and Caitlin C. Fitzsimons in New York. “Greenberg Traurig has an unparalleled support structure built into its global platform, reinforced by a talented team,” Willis said. “I am committed to providing our clients with strategic advice to help them navigate the complexities of estate planning and litigation, ensuring their wishes are honored and their families are protected.” Willis holds a J.D. from Boston College Law School and a B.S., magna cum laude, from the University of Utah. In addition to Nevada, she is admitted to practice law in California and Utah.
6 | Wealth & Finance Q1 2025 Best Boutique Alternative Investment Firm 2024 From identifying a gap in the market in 2019 to its multi-award-winning status over just two years – from 2023 to 2024 – New Capital Link has swiftly solidified itself as a major upcoming player in the alternative investments sphere. The milestones the company has seen in such a short space of time have been inspirational for many. Not only has the firm been built on an unwavering foundation of trust and transparency, but it has set new records by achieving its highest average return of 12.08% for its clients. Then, in 2024 New Capital Link topped its record high with a ROI of 13.35% for its clients. The dedication shown by New Capital Link led it to winning multiple global awards which truly reflect its success in its competitive and complex sector. Providing qualified investors with exclusive access to carefully selected alternative investment opportunities, New Capital Link delivers extremely highly competitive returns, direct access to exclusive deals, and a multiaward-winning partner for the future to come. With investment opportunities in convertible loan notes, property bonds, joint venture property investment, social housing investment, green ethical investments, student accommodation investment, gold investment, IFISA, and private equity (IPOs), New Capital Link presents a myriad of unique areas to increase an individual’s ROI. Always priding itself on its diverse offerings of alternative investment solutions, New Capital Link continues to cherry pick the best opportunities for its clients, especially the opportunities that will guarantee recordbreaking ROIs. Its tailored solutions to suit its investors have pushed New Capital Link to the forefront of alternative investments across the UK and overseas. After completely hitting the ground running in 2020 when it formally emerged as New Capital Link, this boutique alternative investments firm has been a source of excitement and encouragement for investors around the world. New Capital Link’s founding partners and team – with 18 members in total – have over 70 years of combined experience, four award-wins behind them, and a track record of 36M capital raised for its investors. Its monumental efforts to break into such a highly competitive industry have paid off with the team’s commitment to finding the best opportunities and working tirelessly to ensure these opportunities pay off as much as possible. Achieving an above average ROI while staying transparent and fair, New Capital Link stays true to its mission statement – its mission statement is to ensure that everyone who comes into contact with its brand has a positive experience, whether they are a supplier, customer, of staff member. Winning two awards from SME News in 2023, an award for 2022 and 2023 in the Global Awards, and awarded with Best Boutique Alternative Investment Firm 2024 from us at Wealth and Finance International just recently, New Capital Link has set the bar high for those to follow. It’s a pleasure to celebrate and showcase the firm’s success in our most recent Private Equity and Venture Capital Awards, and we’re sure to see it continue to help its clients. New Capital Link has plans for the next five, ten, and fifteen years ahead where it will continue to offer investment opportunities which meet rigorous criteria, low risk, high return, and innovative solutions for all of its investors. The firm told us about its recent launch of the UKs only comparison website for alternative investments, and it is soon to release a B2B investment platform – with plans to be a leading provider in both of these spaces by the end of this year. There are other developments and plans underway but New Capital Link is keeping its cards close to its chest, so watch this space! If you would like to learn more about New Capital Link’s history and opportunities, visit its website today. Contact: James Harper Company: New Capital Link Website: https://newcapitallink.co.uk/ Offering exclusive opportunities for alternative investments across the globe, New Capital Link is a UKbased boutique investment firm specialising in helping high-net-worth individuals to invest well. Here we take a closer look as the firm recently won its title in our Private Equity and Venture Capital Awards 2024.
Closing the ‘Tax Gap’: More Businesses than Ever to Face HMRC Investigations As the government seeks to crack down on tax avoidance and fraud, HMRC is preparing itself for a record number of investigations. In 2025, the new government’s changes to the tax system will gradually roll out, including measures to reduce what it calls the ‘tax gap’, that Chancellor of the Exchequer Rachel Reeves says currently stands at around £40 billion. The government’s plans will see HMRC recruit 5,000 more tax officials over the next year, with a portion of its funding ‘ring-fenced’ to target strategically important criminal cases and ensure a strong deterrent against tax evasion. Hamraj Kang, founder and Senior Partner at KANGS Solicitors, believes the intensity of the government’s campaign against tax avoidance will see more businesses than ever facing scrutiny by HMRC, and potentially civil and criminal investigations. The crackdown takes place after the number of potential criminal cases being investigated by HMRC increased by 49% between 2021/22 and 2022/23. As part of the government’s plans, 200 new compliance officers started work in November 2024, with the aim of ensuring that individuals and businesses are paying the correct amount of tax at the right time. “Endeavouring to narrow what is quite a large hole in the country’s finances is a tall order and will require substantial resources to carry out. Businesses and individuals may find themselves facing enquiries and investigations and should therefore inform themselves on what they may face and how to deal with it,” said Hamraj. Below, Hamraj outlines three key aspects of an investigation that businesses should be aware of in case they find themselves facing a tax dispute. 1. What to expect from an HMRC compliance check Hamraj: “There are a number of factors that can prompt an HMRC compliance check. For example, HMRC might launch an investigation owing to inconsistencies in tax returns, significant changes in income or expenses, and even information from a third party. They can cover a range of different types of tax, including corporation tax or national insurance, and will usually see HMRC requesting to review tax returns, accounts, all PAYE documents and more. “At the beginning of a compliance check, HMRC will send an information notice detailing the information and documentation needed. Officers may even attend a premises, sometimes without notice, depending on the circumstances. HMRC will then use its findings to determine whether or not tax is owed and whether or not it deems it necessary to impose a penalty. “In the event of a compliance check, don’t act alone. It is essential that experienced legal advice is obtained immediately and before engaging in any form of discussion or interview with HMRC officers.” 2. The consequences of non-compliance Hamraj: “Non-compliance can be costly and can come in two main forms. Firstly, businesses may refuse to comply with an HMRC information notice where the taxpayer will be asked to provide the relevant information and documentation. It can also mean refusing entry to HMRC to your premises in order for an investigation to be carried out. “Failure to comply with HMRC will likely lead to a fine against the taxpayer. In most cases, these fines are imposed daily until the taxpayer complies with the request.” 3. Dealing with a criminal investigation Hamraj: “While HMRC’s general policy is to use civil fraud investigation procedures, in serious cases – or where it wishes to send a strong message – it will conduct a criminal investigation. “Generally, it will consider a criminal investigation, in instances where an organised criminal gang is attacking the tax system or conducting systematic fraud, or where there is a link to wider criminality involving other offences. There are also cases where giving false statements or documents can lead to criminal investigations, or where the perpetrator is a repeat offender and has faced an investigation before. “As with any criminal investigation, the presence of legal expertise is important to a fair and rightful outcome. At any stage of the process, businesses must ensure they’re fully informed and have their financial affairs in order.”
8 | Wealth & Finance Q1 2025 Commercial Cyberattacks Reach an All-Time High According to a new report, UK businesses encountered more than 753,341 malicious attempts each to breach their online and IT systems in 2024. This was four percent higher than in 2023 (720,252 attacks), with businesses encountering an online threat every 42 seconds. This makes 2024 the worst year for attempted cyberattacks. The attack rate did decline in the final quarter of 2024- this is the first time since 2021 that Q4 was not the most prolific time of year for cyberattacks. Despite the reduction this is only the third quarter on record that cyberattacks experienced by businesses exceeded 2,000 per day. Cybercriminals targeting remote IoT devices In 2024, devices connected to the Internet of Things (loT) were the most frequently attacked by cybercriminals. Business firewalls also received more than 161 daily attacks targeting building control systems, security cameras, networked printers, remote monitoring, and industrial automation systems. Cybercriminals also frequently targeted web applications, remote desktop software, and company databases. Typically, businesses attracted more than 20 individual attacks daily for each of these systems in 2024. China identified as a hacker hotspot The report also found that cybercriminals are using more than a million IP addresses to launch attacks on businesses in the UK in 2024, with almost a quarter (241,019) of these being traced to areas in China. India has also been identified as an area where a significant and increasing volume of cyberattacks have appeared, with 87,144 attacking IP addresses. This is in comparison to 81,112 attacking IP addresses in the USA in 2024. AJ Thompson, CCO at Northdoor plc, explains: “loT devices can be compromised by cybercriminals in several different ways and quite often this is done remotely. In many cases there is a lack of sufficient protection even though you would expect that loT, as a modern technology, would have adequate in-built protection. “Often there is a lack of user awareness around the technology, with easily guessed passwords that are almost never changed. Many also fail to implement updates with unpatched vulnerabilities leaving devices open to cyber threats. Late updates also pose a significant threat. Seen as an inconvenience, they are almost always put off until a cybersecurity issue occurs. “IoT connected devices need to be configured securely, which can be a daunting task for many. This lengthy process has multiple considerations, which can be onerous and time-consuming for in-house IT teams. With budgets being cut and manpower stretched, understanding which IoT devices exist, what they do, how they are configured and most importantly how they should be protected, can seem like an impossible task. “Turning to experienced third-party IT consultancies to help relieve the pressure will be crucial in 2025 and beyond. These consultancies can provide IoT and cybersecurity expertise that in-house teams struggle with. By monitoring systems as well as educating teams about the latest threats, consultancies are in a better position to keep cybercriminals out,” concluded Thompson. By AJ Thompson, CCO at IT consultancy Northdoor plc Third-party IT consultants can provide IoT and cybersecurity expertise that in-house teams struggle with
9 | Wealth & Finance Q1 2025 Cybersecurity Trends of 2025: What the Experts Expect to See With the recent news from GCHQ that the UK is facing a “widening gap” in its ability to fight cyber threats, 2025 looks to be an increasingly tough year for cybersecurity experts. Today, cybersecurity solutions provider ramsac share their top trends for 2025 and what to expect from the world of cybersecurity over the next 12 months. AI – a growing force It’s no surprise that AI is a feature here. As the response quality and data sets grow and become more accurate and comprehensive, AI will continue to play a huge role in cyber attacks and response. AI tools can detect and react to suspicious behaviour with greater accuracy, but on the flip side, this accuracy will only lead to an increase in more believable phishing threats designed to steal the user’s money or identity. Similarly, deepfakes either vocal or physical, or perhaps both, will increase. O2’s new AI granny is a positive use of AI to combat fraud, but this could easily be reversed and used by malicious actors to scam and defraud people. Regulation on AI With AI as a positive and negative force in cybersecurity, 2025 will also bring an increase in regulation across the globe. The EU’s AI Act comes into full force in 2027 but in 2025, a lot of the provisions become applicable: • 1 Feb 2025: Chapters I (general provisions) & II (prohibited AI systems) will apply. • 1 Aug 2025: Chapter III Section 4 (notifying authorities), Chapter V (general purpose AI models), Chapter VII (governance), Chapter XII (confidentiality and penalties), and Article 78 (confidentiality) will apply, except for Article 101 (fines for General Purpose AI providers). Extortion and ransomware increase With cryptocurrency providing an anonymised way for criminals to hide, extortion and ransomware attacks could be set for an increase in 2025. These attacks are tough to recover from for businesses and take time and careful negotiations to avoid serious impact. As cryptocurrencies are seeing a resurgence in popularity and value, this has made the risk of carrying out a ransomware attack less than the potential reward, leading to more criminals carrying out this kind of malicious behaviour. Time to exploit lowered As computing power and AI increase, the time to find and exploit vulnerabilities will be greatly reduced. Cybercriminals will be able to test out a wider variety of weaknesses in networks and systems faster than ever before. To overcome this, regular patching will be essential as well as using up-to-date technology and more stringent software checks. Resilient foundations Businesses will start to build more resilient foundations, roll out multifactor authentication and more rigorous security measures. Implementing multi-factor authentication (MFA) is crucial, with a particular emphasis on phishing-resistant methods. Advanced techniques, such as passkeys, which authenticate users by binding logins to legitimate site URLs, thereby rendering it extremely difficult for attackers to utilise fake login pages, will also likely see an increase in adoption. The use of phishingresistant MFA has been gradual, however, and tools such as Windows Hello for Business, FIDO2 hardware keys, and the increasing utilisation of passkeys offer promising solutions for enhancing security. Cyber attacks as a form of warfare As global geopolitical tensions heighten, it’s likely that cyber attacks will be used as a form of warfare and retaliation. While this can’t be stopped, it’s important that cybersecurity monitoring and contingency plans are in place to mitigate the impacts of any attacks, especially within the supply chain of a business. Increase in infostealer malware With data becoming a business’s most valuable asset, infostealer malware will continue to increase and wreak havoc. In 2022, Google’s Mandiant recorded a 60% increase in infostealer advertisements, and the availability has only grown since then. With a lower cost barrier to entry, and little to no technical knowledge required, infostealer software, which is in the Malware as a Software (MaaS) category, holds nearly a quarter market share. What can businesses do to mitigate the risks 2025 brings? Businesses can’t stop cybercriminals from trying to attack businesses and individuals, but reducing the impact of their attacks is within their control. Consider the following steps to help secure your business in 2025: 1. Ensure you understand your ability to bounce back from a successful cybersecurity attack and ideally have your cyber resilience certified. 2. Invest in training for all staff and board members. With the right training and skills, people are able to spot potential scams quicker and feel confident in reporting them. 3. Use monitoring software. Breach monitoring software like secure+ works 24/7 and can react to prevent any attacks from spreading into your business by locking down accounts or access. 4. Keep devices up to date. This includes both software and hardware. Windows 10 reaches end of life in 2025, so investment in new devices is a necessity to protect your business.
10 | Wealth & Finance Q1 2025 Maximising Wealth Preservation with Family Investment Companies Families looking to preserve and maximise their financial assets have a range of financial and wealth management options. One of the most effective tools is Family Investment Companies (FICs), which are used to manage and transfer family wealth. They are private companies tailored to hold and manage assets while offering tax efficiency and flexibility. Unlike traditional trusts, FICs provide a more adaptable and controlled approach to wealth management. To get the most out of FICs and optimise wealth prevention, one should understand the benefits of FICs, the key considerations to leveraging them for managing assets, and why they are a preferred choice for family wealth management. What Is a Family Investment Company? Family Investment Companies (FICs) offer a structured approach to managing family wealth. These private companies stand out for their ability to manage wealth in a way that can be more tax-efficient than traditional trusts. FICs are also adaptable and designed to meet the specific financial goals and circumstances of each family. Understanding the Structure and Set-Up of FICs When establishing a FIC, several key decisions shape its effectiveness in wealth management. This includes choosing between an unlimited or a limited company structure, each having its own legal and financial implications. Unlimited companies maintain the confidentiality of financial affairs, whereas limited companies limit shareholders’ liability to their investment in the company. The appointment of directors and shareholders, along with drafting tailored Articles of Association, also forms the backbone of how the FIC operates and manages wealth. Tax Benefits of FICs FICs offer several tax advantages. They are subject to Corporation Tax on profits, with the current rate at 25%. However, FICs can benefit from certain tax reliefs, such as most dividends received by a UK company being exempt from Corporation Tax. This aspect makes receiving dividends an attractive option within the FIC structure. Capital Gains Tax considerations are also relevant, particularly when disposing of assets or dissolving the FIC. By Joe Cobb, Head of Private Wealth at JMW Solicitors With regard to Inheritance Tax, FICs can be an efficient tool for succession planning, allowing for tax-free asset transfers under specific conditions. Managing Assets and Investments within an FIC FICs can manage a diverse range of assets, including property portfolios and equity investments. They offer a framework for tax-efficient accumulation of income, such as rental income from property, which is subject to Corporation Tax rates within the FIC. Additionally, the FIC structure allows for deductions of certain expenses like loan interest, which individual investors can’t leverage. These features make FICs an attractive vehicle for growing and protecting family wealth over time, providing both income streams and capital growth opportunities. Control and Succession Planning in FICs FICs facilitate effective wealth transition and control over assets. The use of different share classes allows for varying levels of control and financial benefits among family members. For instance, parents may hold shares with voting rights but no dividend benefits, while children might have shares entitled to dividends, subject to parental consent. This arrangement ensures parents retain decisionmaking power while preparing for wealth transfer to the next generation. Potential Drawbacks and Challenges Despite the advantages, FICs come with their own set of challenges. One such issue is the possibility of double taxation if profits are distributed, as profits are taxed within the company and then again upon distribution to shareholders. Additionally, transferring assets into an FIC might trigger Capital Gains Tax and Inheritance Tax considerations need careful planning. Higher administrative costs and the potential for family disagreements over company management are other factors to consider. Families must weigh these challenges against the benefits and engage in thorough planning to optimise their FIC structure. The Need for Professional Assistance Tax advisors, accountants and legal succession planning experts play a crucial role in tailoring the FIC to the family’s specific needs while ensuring compliance with regulations. These professionals can provide insights into effective tax planning strategies and assist in the legal management of FICs. Their expertise is instrumental in maximising the benefits of an FIC and ensuring its smooth operation. FICs offer a structured approach to family wealth management, combining flexibility in asset control with potential tax efficiencies. They provide a means for tailored succession planning, ensuring a systematic transition of wealth to future generations. While there are challenges to consider, such as potential tax implications and administrative demands, the benefits of FICs in wealth management and succession planning can be significant. Consulting with professional advisors is advisable to navigate the complexities of FICs and to tailor their structure and management to the family’s unique needs and objectives.
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