By having a US domestic investment banking facility, investors are able to avoid the Report of Foreign Bank and Financial Accounts (FBAR) and Statement of Specified Foreign Financial Assets – form 8938 (Super FBAR’) investment reporting obligations, London & Capital points out.
“Recent US legislation has been designed to catch out US citizens who may not have declared their investments overseas, and with penalties sometimes in the region of 50% of the balance of an investor’s account, plus interest, penalties for non-reporting occasionally exceed the underlying value of the account,” said Daniel Freedman, co-founder and head of US office at London & Capital.
“The new service we are offering provides US resident non-doms and Green Card holders with an investment solution which will reduce the amount of paperwork they have to complete and cut accountancy costs. What is more, as an SEC regulated adviser, we are able to offer a US national complete peace of mind that their investment affairs are being handled in a fully compliant manner.”
Before now, London & Capital said it was not possible for individuals to obtain a US domestic bank account without a primary US residential address. However, the company, which is regulated by both the Securities and Exchange Commission in the US and the Financial Conduct Authority in the UK, said its new facility, created in conjunction with Royal Bank of Canada, will “further simplify the inherent processes involved in preserving their wealth”.
Benefits of the service include:
- US domestic platform: the opportunity to custody assets onshore, in the US
- Reporting: the ability to avoid the FBAR and 8938 reporting obligations
- US Pensions: the ability to manage US pensions effectively in line with the client’s brokerage account
- Multi-currency: the facility to manage the account in both £ sterling and US $
- Low brokerage costs: transaction, custody and trading charge set at US brokerage rate
- Online access: 24/7 online access to RBC’s reporting facility
- Investment advice: award-winning investment management strategies and advice, portfolio management and brokerage solutions from London & Capital
- Reduced accountancy costs
