A vial of a potential vaccine for coronavirus is pictured at Imperial College London. Reuters
A vial of a potential vaccine for coronavirus is pictured at Imperial College London. Reuters
A vial of a potential vaccine for coronavirus is pictured at Imperial College London. Reuters
A vial of a potential vaccine for coronavirus is pictured at Imperial College London. Reuters

UK government could use emergency powers to push through unlicensed vaccine


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The British government is preparing to invoke emergency powers to allow the use of a coronavirus vaccine for the public, even if it has not met EU licensing requirements, the i newspaper reported.

The UK would use its own emergency regulations to bypass EU law and roll out a vaccine for use if one became available before the end of the Brexit transition agreement on December 31.

A public consultation on the plans was due to close on Friday, and the government sought to calm fears that it would rush through an unsafe treatment.

It said the emergency authorisation of an unlicensed vaccine would only be given after regulators were convinced of its safety and effectiveness.

“A Covid-19 vaccine would only be authorised in this way if the UK’s licensing authority was satisfied that there is sufficient evidence to demonstrate the safety, quality and efficacy of the vaccine,” the consultation document read.

“This temporary authorisation process exists to address the possibility that, in certain situations of public health need, the licensing authority may consider that the balance of risk and benefit to patients justifies the temporary supply of the relevant vaccine pending the issue of a product licence.”

Britain has suffered one of the world’s most severe outbreaks of the virus.

Almost 385,000 cases of coronavirus have been reported since the pandemic took hold, and the country has registered more than 40,000 deaths from Covid-19.

After battling back a first wave of infections in the spring, cases are mounting again.

The government on Thursday announced strict new lockdown measures for parts of the country’s north-east in an effort to stave off rising infections.

Some two million people are affected by new the orders restricting social gatherings, including home visits.

The government is facing renewed criticism over its handling of the outbreak, with severe testing shortages in England drawing ire as infections climb.

The country reported a further 3,395 cases on Thursday. It was the sixth time in the past week that more than 3,000 cases had been reported.

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Desert Warrior

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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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