Agency fined over doctored image



A public relations agency based in Dubai has been fined Dh15,000 (US$4,083) for distributing a doctored photograph among the local media.

The fine, the first ever levied by the Middle East Public Relations Association (MEPRA), comes just weeks after the firm won four accolades at MEPRA's industry awards, including Agency of the Year.

The agency, d'pr, was fined after it sent out an image of its staff, taken at the MEPRA event and in which it had airbrushed out the names of the event sponsors and inserted its own logo. The photograph was sent to local newspapers and websites, several of which published it.

MEPRA said the photograph "was changed by the agency resulting in the sponsor logos being airbrushed out and d'pr's logo being inserted".

The association said the manipulation of the image broke its "code of practice" and was "a serious breach of ethics".

Sponsors of the event included the industry recruitment firm PRJS, the online monitoring firm Social Eyez, the public relations companies Grayling Momentum and Hill & Knowlton, and the media monitoring agency Meltwater Group.

Rebecca Hill, MEPRA's executive director, said the decision to fine d'pr was about "upholding standards" in the PR industry, rather than protecting the association's sponsorship interests.

"This is very much about the PR profession as a whole," Ms Hill said. She added that in a "self-policing" industry, the association could act only on breaches that were brought to its attention.

"If it's not brought to our attention, there's nothing [we] can do about it," Ms Hill said.

Aside from imposing a fine, the association placed d'pr on "a 12-month probationary period" and banned it from entering next year's Agency of the Year award. Under the ruling, employees at the agency have been asked to sign a copy of MEPRA's code of practice and must conduct internal training on ethics.

Camilla d'Abo, the managing director of d'pr, apologised for the "error".

"Obviously it was a mistake. As soon as it came to our attention we took immediate action," Ms d'Abo said. "We've made sure internally that mistakes like this don't happen again."

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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Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain

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