The company said it launched the products in response to recent tax and legislative changes made in the US, namely the HIRE Act and the Foreign Account Tax Compliance Act. Both Acts include measures which make advising American clients a more complex and potentially costly process, with the Hire Act, for example, introducing penalties of up to 40% for non-compliance.
The London & Capital US Managed Portfolios, available through the Praemium Platform, are structured in a way which is compliant with US tax reporting requirements but also consistent with existing UK wrappers such as ISAs and SIPPs. The portfolios have a minimum investment of £10,000 and invest in US-compliant assets.
Daniel Freedman, joint managing director and head of US family office at London & Capital said: “Never in the 25 years that we have been advising and providing wealth management solutions to US clients has regulation been so onerous, have investor penalties been so severe, or – with so many UK banks and wealth management groups withdrawing from this space – has investment choice been so limited.
“The portfolios fill a gap for those investors seeking a solution between a multi-manager product and a fully bespoke discretionary management service, and meet an obvious need on the part of any financial intermediary advising a US citizen – many of whom have encountered significant problems obtaining Professional Indemnity cover to advise US clients.”
Investors in the portfolios will also receive full US and UK tax accounting reports which are produced by Praemium.
