To achieve this, you need to maximise the opportunities available whilst taking into account the strengthening global regulatory policies that have increased the exchange of information and transparency between jurisdictions.
Your HNW clients want you to help provide peace of mind and reassurance that, whatever happens, their family and loved ones are financially secure and their wealth is protected. It could enable you to become their trusted wealth adviser for generations to come.
Have you factored the future generations into your planning?
It’s important to not only consider your clients’ wealth but to look ahead and help the generations that may inherit significant wealth in the future. It could be prudent to include them in the initial planning and they may become customers for life.
What are HNW clients looking for?
Wealthy investors are likely to be considering how best to structure their assets following changes to regulation, such as the global introduction of the Common Reporting Standard (CRS) regime. If a client has a complex portfolio of global assets, they may be concerned that their personal details are accurate and consistent across their diverse international wealth base. They are also becoming increasingly exposed to death (and other) taxes, for example on property in the UK. There is an opportunity here for you to help navigate these changes.
Investing in UK property and tax liability
Research carried out in 2017 by the London Mayor, Sadiq Kahn, found that foreign investors, including those from Hong Kong and Singapore, purchased 3,600 of London’s 28,000 newly built homes between 2014 and 2016. If any of these new owners were to die, they would have a 40% tax liability if their wealth in the UK was in excess of their individual nil rate band allowance (currently £325,000). So if, for example, an investor is domiciled in a country without death taxes such as China, but owns a property in the UK, they could face a 40% UK inheritance tax (IHT) liability in the UK if their wealth is in excess of £325,000
How can Old Mutual International help?
By using a Variable Universal Life insurance policy, such as Old Mutual International’s SILK Life Plan or the Tailored Life Plan, your clients can instruct the purchase or sale of investment holdings with the legal ownership sitting with Old Mutual International. The simplicity of a single structure holding the assets means that lenders may offer preferential terms. This is because the assets are in a simple single structure, as opposed to a basket of varied and disparate individual holdings. These policies can be used by your clients to help meet their IHT liabilities.
From a Common Reporting Standards perspective, your clients can also feel confident that the lower volume of consolidated reporting is sent securely by Old Mutual International.
So where can you add value? Use your technical and regulatory knowledge to advise your clients.
In a recent World Wealth Report by Capgemini, findings showed that despite a volatile economic environment and constantly changing industry and regulatory landscape, HNW individuals’ trust, confidence and satisfaction in wealth management remained high. Satisfaction increased with wealth advisers and wealth management firms, possibly due to the higher emphasis placed on the client experience. So it’s worth considering getting ahead of the curve with your technical and regulatory knowledge and talking to your clients.
In this article, I have highlighted just a few recent issues where your knowledge and advice, helped by our technical experts, will add significant value to your clients and future generations. Working with Old Mutual International and using our HNW wealth solutions may just be the right planning route for your clients.
Visit our website to find out about Old Mutual International’s HNW wealth solutions.
