Grandparents, cousins and similarly close relations of people in the United States should not be prevented from coming to the country under president Donald Trump's travel ban, a federal appeals court has ruled in another legal defeat for the administration on the contentious issue.
The decision on Thursday from three judges on the 9th US Circuit Court of Appeals upheld a ruling by a federal judge in Hawaii, who found the administration's view of who should be allowed into the country under the ban is too strict.
The unanimous ruling also said refugees accepted by a resettlement agency should not be banned.
"Stated simply, the government does not offer a persuasive explanation for why a mother-in-law is clearly a bona fide relationship, in the supreme court's prior reasoning, but a grandparent, grandchild, aunt, uncle, niece, nephew, or cousin is not," the judges said.
The appeals panel wrote that under typical court rules, its ruling would not take effect for at least 52 days. But in this instance, many refugees would be "gravely imperiled" by such a delay, so the decision will take effect in five days.
"Refugees' lives remain in vulnerable limbo during the pendency of the supreme court's stay," they wrote. "Refugees have only a narrow window of time to complete their travel, as certain security and medical checks expire and must then be reinitiated."
The US justice department said it would appeal.
"The supreme court has stepped in to correct these lower courts before, and we will now return to the supreme court to vindicate the executive branch's duty to protect the nation," the department said.
The US supreme court ruled in June that Mr Trump's 90-day ban on visitors from Iran, Libya, Somalia, Sudan, Syria and Yemen could be enforced pending arguments scheduled for October, partially overturning lower-court rulings. But the justices said it should not apply to visitors who have a "bona fide relationship" with people or organisations in the US, such as close family ties or a job offer.
That set the stage for much disagreement over what constitutes a bona fide relationship.
The government interpreted such family relations to include immediate family members and in-laws, but not grandparents, cousins, aunts and uncles. The judge in Hawaii overruled that interpretation, expanding the definition of who can enter the country to the other categories of relatives.
He also overruled the government's assertion that refugees from those countries should be banned even if a resettlement agency in the US had agreed to take them in.
The administration argued that resettlement agencies have a relationship with the government, not with individual refugees. The appeals court rejected that, saying the supreme court was concerned with any harm the travel ban might impose on people or organisations in the US.
Resettlement agencies have spent time and money securing rental housing, buying furniture and performing other tasks that would be in vain if the refugees were blocked, the appeals court said. They also would lose out on government funding for the resettlement services.
Lawyers for the government and the state of Hawaii, which challenged the travel ban, argued the case in Seattle last week.
Deputy assistant attorney general Hashim Mooppan ran into tough questions as soon as he began arguing the government's case, with judge Ronald Gould asking him from "what universe" the administration took its position that grandparents do not constitute a close family relationship.
Mr Mooppan conceded that people can have a profound connection to their grandparents and other extended relatives, but from a legal perspective, the administration had to draw the line somewhere to have a workable ban based largely on definitions used in other aspects of immigration law, he said.
Hawaii is also one of 15 states that sued the Trump administration on Wednesday over its plans to end the Deferred Action for Childhood Arrivals programme that protects young immigrants from deportation.
"Today's decision by the 9th Circuit keeps families together. It gives vetted refugees a second chance," state attorney general Douglas Chin said. "The Trump administration keeps taking actions with no legal basis. We will keep fighting back."
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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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