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Crowdfunding rules confirmed

The Financial Conduct Authority (FCA) undertook  a consultation on tighter regulation of  crowdfunding last December. It was clear that technologic innovation to support both debt and equity capital raising via on-line platforms was often unregulated and that as a results investors might be duped into investing in dubious propositions.  The FCA have now covered the results of the consultation and published the detail rules that will apply in future - which are much the same as they consulted on. See www.fca.org.uk/news/firms/ps14-04-crowdfunding ...

Analysts forecasts and Persimmon

Why are stock market analysts forecasts so varied? Or to put it another way, why are they so useless as a reliable predictor of the future? This question came to mind when looking at their recommendations after Persimmon issued their final results on the 25th February. Persimmon is of course a house building company. So it's operating in a well established sector where business trends are well researched and well known. Indeed house prices are dinner table conversations and the level of ...

Scottish Mortgage Investment Trust reduces fees

The Scottish Mortgage Investment Trust has announced that the management fees paid to Baillie Gifford are to be reduced. They are coming down from  0.32% to 0.30% of net assets per annum. This reduction is surely to be welcomed, and there is no performance fee at this trust. The Chairman of the company, John Scott,  said: "Both the Board and Managers are keenly aware that low charges have a major impact on long term returns especially when compounding is taken into account.  ...

Stop losses and shorting – Techinvest caught out with Blinkx

Stop losses are a way that many investors use to limit the downside risk on stock market investments. They help to counter the "loss aversion" psychological trait that encourages you to continue holding a stock because you have fallen in love with it whereas everyone else is seeing it differently, or may have some information that you do not. But as that well respected publication Techinvest has just found out, there is a significant problem when there is an active shorting campaign ...

Royal Bank of Scotland – more losses and downsizing

Royal Bank of Scotland (RBS) announced yet another set of disappointing results yesterday (27/2/2014). The share price closed down 8% on the day and is now way below what the Government paid for its majority stake in the business. New chief executive Ross McEwan announced the results after the previous one, Stephen Hester, had departed to sort out another basket case - RSA (formerly Royal and  Sun Alliance). It was certainly an opportune moment to move on. Last year RBS managed to ...