An accountancy firm which managed the Scottish National Party’s finances for more than a decade has resigned from the role.
The decision by Johnston Carmichael to quit as auditor comes after the arrest and subsequent release without charge of former SNP chief executive Peter Murrell, who is married to former first minister and party leader Nicola Sturgeon.
The couple resigned from their roles in the SNP separately but within weeks of each other.
On Friday, an SNP spokesman said: "We can confirm that Johnston Carmichael will not be providing audit services to the SNP this year.
"The national treasurer is undertaking a tendering process for alternative provision and we have advised the Electoral Commission of that position."
Mr Murrell was detained for more than 11 hours on Wednesday as part of a police investigation into the funding and finances of the SNP. He was released without charge pending further investigation.
Police also spent two days searching the couple’s house in Glasgow on Wednesday and Thursday, erecting a tent in front of their home.
The party’s Edinburgh headquarters was also searched.
Mr Murrell, who has been married to Ms Sturgeon since 2010, resigned as SNP chief executive last month, a role he had held since 1999.
Police launched a formal investigation into the SNP’s finances in the summer of 2021 after receiving seven complaints about how donations to the party were spent.
The party had pledged to ring-fence more than £660,000 ($818,790) raised by SNP activists for a second referendum on Scottish independence — but the money was allegedly spent instead.
The SNP had less than £97,000 in the bank in late 2019, and total assets of about £272,000.
In June 2021, Mr Murrell gave the party a loan of more than £107,000 to assist with a “cash flow” problem after the last election. By October it had repaid Mr Murrell about half of the sum.
His resignation last month came after questions were raised about the size of the SNP’s membership during the recent leadership election.
Nicola Sturgeon's husband Peter Murrell arrested - in pictures
The number of members, revealed as 72,186 as of February 15, was down from 104,000 in 2021.
Murray Foote, the SNP’s communications chief, had previously described reports of the drop as “inaccurate” and “drivel” — but later said he had been “acting in good faith” once the decline in membership had been confirmed.
Mr Murrell was blamed for having misinformed Mr Foote and resigned as SNP's chief executive ahead of a vote of no-confidence.
First Minister Humza Yousaf, who took over from Ms Sturgeon last week, earlier described the arrest as a “difficult day”.
“My reaction, as you’d imagine, much like anybody involved in the SNP, is that this is a difficulty day for the party,” he said on Wednesday.
“I think there’ll be concern from the public but, again, there is a live police investigation under way and we will wait to see what comes at the conclusion of that police investigation.”
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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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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
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