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| 1 minute read

Worth a punt?

An extremely interesting article (link below) worth reading and reflecting upon in its entirety.  At its core it identifies and analyses a "moonshot generation", some of whom are characterised as soberly turning to the potential massive up-swing offered by more arguably speculative investments (against a backdrop of crippling inflation) as their only realistic chance of staying 'ahead' in the game of life.  This is offered as part of an explanation for some of the volatility we have seen in the fintech and wider investment markets of late.  Although others have argued that such an approach is not a solution for income inequality on a wider scale, to the extent that the hypothesis rings true and such behaviours continue, it reinforces the urgency for further dynamic regulation of the industry.

Gibraltar's flexible approach to such regulation (involving nuanced interpretation of guiding principles to seek to better keep pace with and accommodate the burgeoning needs of ever-developing technology) offers a monitored, evolving balance allowing for the application of corresponding regulatory safeguards whilst embracing and encouraging innovation.  

There is also an opportunity for this to be complemented by more traditional regulatory and corporate risk-management strategies, including as may be embedded into the constitutional arrangements and processes of participating companies.  Again, Gibraltar, with its international compliant and robust legal system based on common law, but with maximum flexibility in the types of contractual provision that can be accommodated, is very well placed to offer solutions in this space.

Stagnant wages, rock bottom interest rates, soaring house prices — and now, corrosive inflation — have cut away at the idea that the under-40s can follow the well-trodden path to financial security that their parents took. Younger investors report feeling like the game is rigged and that playing by the old rules is a losing strategy.

Tags

financial technology, capital markets, volatility, risk, moonshotgeneration, speculative investments, regulation, regtech, gibraltar