In the six months since L&C’s Immigration Investment and Wealth Planning division first opened its doors for business, L&C estimates it has handled around 6% of the so-called Tier 1 investor visa cases that were recorded during that time.
Around 470 foreign nationals successfully applied to enter the UK on a Tier 1 investor visa in 2012, L&C said, citing UK Home Office data.
Tier 1 investor visas are specialist visas designed to attract wealthy individuals to the UK, by enabling them to remain in the country on a long-term basis in exchange for making a significant investment in its investment markets. They are seen as a stepping stone to British citizenship. The visas were introduced in 2008, and their take-up increased sharply in 2011, when the rules were changed to encourage more people to apply.
Under the rules, applicants must be prepared to invest a minimum sum of £1m in a choice of UK asset classes – gilts, UK bonds or UK equities. It is here, London & Capital notes, that a wealth manager with experience in cross-border wealth issues can be of considerable assistance to those interested in taking advantage of the scheme.
Certainly that seems to have been the case for L&C, it points out. Since it launched its specialist Tier 1 investor visa divison last November, the company says, it has “met around 130 professionals across the sector, which in turn has generated a pipeline of around 30 investor visa cases at varying stages of completion – equating to around 6% of the market”, based on the 2012 Home Office data.
And for now, at least, there seems no reason to believe that interest in Tier 1 investor visas is going to dry up anytime soon, according to Mark Estcourt, L&C’s head of immigration.
Estcourt, who joined L&C last September to set up the new Immigration Investment and Wealth Planning division, noted that the current global economic and political climate, coupled with the UK’s attractions as a residence for high-net-worth individuals, means that "growing numbers of families see the UK as a safe haven”.
“As a result, we are seeing a new market emerge – [that of] individuals seeking a Tier 1 investor visa,” Estcourt added.
With US resident non-doms and Green Card holders accounting for as much as a third of the parent company’s annual revenues, Estcourt went on, “we are well placed to service the investment requirements [of such individuals].”
‘Full wealth management service’
Last September, in announcing London & Capital’s plan to set up the new division and to put Estcourt in charge of running it, L&C co-founder Daniel Freedman noted that the operation would not only handle the complex investment requirements involved in a Tier 1 investor visa, but would also offer its new clients a full wealth management service, including financial planning, help with real estate issues, and general planning. Referrals to legal and tax experts would also be part of the offering.
“This will ensure we deliver the best possible solution for those following the path to either temporary residency or full UK citizenship,” Freedman added.
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