The California-based company said the changes were made in consultation with guests, hosts and privacy experts. AFP
The California-based company said the changes were made in consultation with guests, hosts and privacy experts. AFP
The California-based company said the changes were made in consultation with guests, hosts and privacy experts. AFP
The California-based company said the changes were made in consultation with guests, hosts and privacy experts. AFP

Airbnb bans indoor security cameras: When does new rule come into effect?


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Airbnb has announced it is banning the use of indoor security cameras for all of its listings worldwide.

The California-based company said the changes were made in consultation with guests, hosts and privacy experts. Customers had previously issued complaints about the use of indoor cameras.

“Our goal was to create new, clear rules that provide our community with greater clarity about what to expect on Airbnb,” said Juniper Downs, Airbnb's head of community policy and partnerships.

Here is how the changes will affect hosts and when the new rules will go into effect.

Why is Airbnb banning indoor security cameras?

Airbnb said the move was to simplify its policy on security cameras “and to continue to prioritise the privacy of our community”.

Previously, the company allowed the use of security cameras in common places such as kitchens and living areas if they were clearly disclosed on a host's listing page. The devices were not allowed in bedrooms or bathrooms.

Under the new rule, all indoor cameras will be prohibited regardless of prior disclosure, location or purpose.

Outdoor cameras where guests expect privacy, such as saunas or showers, are also prohibited.

Hosts must also disclose the location not only of outdoor cameras, but also of noise decibel monitors, which must “assess decibel level only and do not record or transmit sounds or conversations and are only allowed in common spaces of listings”, Airbnb said.

Doorbell cameras will continue to be permitted so hosts can monitor security in their home and help prevent issues such as unauthorised parties.

Hosts will not be required to disclose cameras or recording devices that are outside of their control, such as a security camera in the lobby of an apartment complex, Airbnb said.

The update comes a week after US television show Saturday Night Live parodied an Airbnb advert that poked fun at hosts' interior designs and also included a security camera inside one of the bedrooms.

When will the update go into effect?

Airbnb said the rules will apply as from April 30.

“After this, reported violations of this policy brought to our attention will be investigated and action we take can includes listing or account removal,” the company said.

Noncompliant hosts may also have their calendars blocked from future bookings.

Airbnb said the change in policy was expected to affect a small number of listings on its platforms as most do not have security cameras.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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