Which kinds of investment products (tax planning, insurance, trust services) would still be best to operate, and for which customers?

Justin,

I know you have been waiting a long time for this email.  I am writing today to tell you how you can finish our directed study of MBA 571 successfully.

After you have looked at this email, please send me a reply so that I know you have received it.  And let me know when you plan to send me the papers I have requested.

I am very interested in how banking and investment operations in Macau and Hong Kong might (or might not) change depending on possible changes in government structure.  As I am sure you know, this can be a politically sensitive topic.  Government leaders in Beijing and Washington DC, (and also London, Dubai, Tokyo, Berlin, Moscow, and many other places…) have been quoted making statements or threats or just giving various opinions.  I will not ask you to make an opinion about the politics.  Nevertheless, money managers must attempt to anticipate future risk, regardless of any one person’s opinion about the politics.

3)      A long paper, between 2000-3000 words.  For your final paper, I would like you to consider a “worst-case” scenario.  In this scenario, suppose that Beijing and Washington DC have loudly taken opposite points of view about the status of Macau and also Hong Kong.  Suppose that London and Berlin are also not agreeing.  In other words, suppose that everyone is mad at everyone else.  With everyone mad, you should also suppose that each government is imposing penalties of various kinds – so, for example – suppose that the USA has imposed some kind of restriction on financial transactions out of Hong Kong.  Please describe for me just how bad you think that worst-case scenario could be, and then describe for me how you would advise an investment planner to prepare for that situation.  How can the investment planner still run his business in that environment?  Which kinds of investment products (tax planning, insurance, trust services) would still be best to operate, and for which customers?

Be sure to give sources in your final paper.  Your sources are just as important as your paper.  I am very interested in this topic and later I will probably want to read the sources you have used, for my own understanding.

Let me summarize this assignment – I am not expecting you to solve all the difficulties that might come from international disputes.  I am not expecting you to offer wise advice about government policy.  I only want you to think like an investment planner must think, and learn to plan for risk.

Regards,

Mark McKay