They are least likely to seek professional financial advice under the age of 35

People under 35 years of age are at least likely to seek professional financial advice. According to the new Hodge search, only 20% said they had previously sought advice from the IFA.

Family and friends are the biggest source of financial advice for those under 35, according to the survey, which asked more than 3,000 people about their attitudes toward finances. 70% of this age group say this is where they seek advice.

In contrast, the number of people seeking financial advice from the IFA doubled to over 40% for people over 55. The number of people in this age group who consulted their family and friends about their finances has fallen to 53%.

Emma Graham, Director of Business Development at Hodge, said, “The study shows that family and friends have a tremendous influence on all generations of financial matters, especially the younger generation. However, it is important to remember that well-meaning personal views or experiences are not always means good advice.

“Seeking advice from family and friends is the most subjective form of guidance because loved ones often have thoughts or opinions about how to live life that don’t always go along with your own plans.

“Having independent advice from a qualified and experienced financial advisor will not only ensure that you receive objective advice that takes your personal circumstances and plans into account, but you will also get tangible benefits from accessing their experience and making these important decisions with confidence when met when you meet them when You know this. You have considered and weighed all of the available options. “”

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Half of UK finance workers want to change careers because of the pandemic

The coronavirus pandemic has seen workers in the UK financial industry consider career options. According to the new report, 44 percent are considering moving.

Of urban workers seeking change, 13% said they would like to leave the sector as a whole. According to a KPMG study and the Financial Services Skills Commission (FSSC), that figure increases to 16 percent for ages 18 to 30.

The coronavirus pandemic has rattled the UK job market. Data earlier this month showed the country had lost nearly 750,000 jobs since the blockade began in March.

Britain is also facing constant changes in the way people work. A BBC survey of 50 major companies yesterday found that none of them plan to bring all employees back to the office full-time anytime soon.

KPMG and FSSC asked more than 600 tax officials in July whether the coronavirus pandemic has caused them to change careers and 44% said yes.

The weather outside the office is changing

Karim Hadji, Head of Financial Services at KPMG, said, “Since we spend more time at home away from our colleagues and offices, it makes sense that many people question their current roles and decisions.”

About a third – 31 percent – of workers said they were looking for new roles that would dry up or come out of finances by the end of the year.

15% of those who wish to leave funding cite long working hours as the reason. About 13% of people are now blamed for the long commute.

Hadji said finance must dispel certain beliefs about the sector, including that it has “a conservative employee policy”. However, he said “some work is being done” sparked by the pandemic.

Claire Tunley, CEO of the Financial Services Skills Commission, said, “This sector has a real opportunity to learn from the pandemic’s experience to create a better workforce built on an existing reputation for good pay and promotion.”

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Changes in flows in project financing

Project finance and cash flow remain major challenges in this crisis as construction companies not only in the UAE but around the world question their viability in the coming months.

Lack of financial and accounting discipline from associates generally exacerbates their struggles to go bankrupt in times of economic downturn. The well-known “need for credit,” which is generally structureless, has plunged many contractors into such a difficult cycle.

Due to the Covid-19 pandemic, ongoing projects were put on hold due to disruptions in the supply chain. Productivity is affected because contractors on site follow social distancing guidelines. Operating costs have increased as money has been diverted to reduce the risk of the new coronavirus.

Meanwhile, developments at an early stage have struggled to increase debt as originally envisioned by the project sponsor. As a result, several projects were postponed or canceled entirely.

Effective communication

The communication channels between construction companies and their creditors are becoming more important than ever. This communication needs to be open and focused on the desired end result that will protect the interests of both parties and allow the project to be completed by hand with the best possible outcome.

Restructuring of existing credit lines to accommodate the tidal changes is necessary so that contractors and their projects can survive. Today’s banks are very pragmatic about getting this desired result.

Fence with rings

One of the observations that lenders made during the 2008 financial crisis and the current pandemic crisis is that contractors who limit cash flow from their projects tend to perform better and increase funding for the project more quickly.

This is where the contract finance model appears, the term used by creditor banks. The model depends on the “what”:

The project’s first cash flow
Project implementation plan
A legal contract that describes scope, time, costs and responsibilities
After analyzing the above, the necessary financial instruments or “how” are structured:

Guarantees will be provided by contractors (bank guarantees for performance, prepayments and retention)
Procurement requirements, whether material or equipment (credit note)
Temporary cash flow deficits due to lengthy costs and receipt of payments by the project owner in accordance with the terms of the contract (short-term loan or overdraft)
For ring fencing to work, all payments made or received must be in a specific bank account which will only be used to complete this project. After completing the project, the account will stop functioning.

The communication channels between construction companies and their creditors are becoming more important than ever
Such an agreement requires the contractor to distribute proceeds to the accounts of the lender and the project owner for confirmation and acceptance to ensure that payments are only made to project-specific accounts. However, the refusal of some project owners to assign project assignments made it difficult for contractors to ensure proper cash flow funding from their banks.

Based on the above model, the bank will endeavor to support the completion of the project as much as possible, which will result in a guarantee return and termination of the engagement. The bank offers assistance if the source of payment is clear and unambiguous. They provide more assistance when payments are made and credited to project accounts.

This agreement also helps the contractor and their finance team maintain fencing project discipline and avoid the inconvenience associated with having funds on a specific project to attract other tough projects, ultimately leading to failure of the first project.

When the music stopped, the projects suffered greatly from a lack of new flows to cover previous withdrawals outside the project cash flow.

Hence, it is an ecosystem that must be in place if we are to protect and enhance the performance of this very important industry. All parties need to be aware that nothing can work in isolation and that the failure of either party is the failure of the project.

time for a change

Now is the time to build on this practice and work with regulators to facilitate a mandate to allocate project funds to guarantee banks. It is time for us bankers to rethink the burdens we have placed on contractors: canceled contracts, overdue certificates, and the amount, text and duration of bank guarantees under the project.

These are the real decisions we have to make to solve the real problems that hinder the development of this industry: writing fairer contracts; Promote the use of technology; and build sustainably. Now is always the best time to change.

In the future, any planning after the project should lead to a possible second wave of the Covid-19 pandemic. We all hope we don’t face such calamities again, but when they do we need to be prepared for them. Learning from the current crisis is the most important outcome of our current situation.

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