Can an Accredited UK-Based Independent Financial Adviser Provide the Best Support for Expatriate Clients?

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Can an Accredited UK-Based Independent Financial
Adviser Provide the Best Support for Expatriate
Clients?
Can an Accredited UK-Based Independent Financial
Adviser Provide the Best Support for Expatriate
Clients?
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Chase Buchanans network of offices led and
staffed by our highly accomplished teams of tax
specialists, financial advisers, and private
wealth managers, often speak with new clients who
need absolute assurance that the guidance they
receivewhether to manage their investments,
international tax exposure, or retirement
wealthis accurate and reliable. While hiring
an Independent Financial Adviser in any country
should theoretically offer this level of
assurance, the reality is that standards,
qualifications, experience and degrees of
independence vary significantly between countries.
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Weve explored in previous guides how an adviser
who purports to be independent in one
jurisdiction might, in fact, work exclusively for
one bank but remains adherent to regulations in
using this word within their job title. Were
looking at a slightly different angle and
exploring whether an Independent Financial
Adviser (IFA) based in the UK and with British
accreditation can offer the degree of
professional financial advice an expat requires
and why the answer is that it depends.
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Are UK-Based Independent Financial Advisers
Permitted to Advise Overseas Clients?

• Well start with the basics In the UK, the IFA
  qualification doesnt necessarily infer that a
  professional adviser is an expert in every area
  of financial management. Nor does it always mean
  they are 100 independent and offer unbiased
  guidance based solely on your objectives.
• There are distinctions to be aware of
• Restricted advisers can work in personal finance
  but have one specific area of knowledge or offer
  products from one or a select number of banks or
  financial institutions.

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• Non-restricted advisers often call themselves
  whole-of-market because they can suggest any
  product or fund from any bank or institution they
  believe is in your interests.
• Both types of advisers are Financial Conduct
  Authority (FCA) regulated and are professionally
  bound to offer objective advice, but they provide
  very different scopes of service. Neither,
  importantly, are authorised to provide advice
  related to matters outside of the UK, since this
  is the only jurisdiction in which UK regulations,
  consumer protection and ombudsman services apply.
• Many expats seeking financial advice ahead of an
  international move may also need to clarify the
  role of the FCA, as the UK regulatory body, in
  any services they use before their relocation.

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The FCA and Financial Services Regulations for
Expat Clients
Since the FCA is a UK regulatory organisation, it
has limited powers or remit in any other country.
Although the regulator often confers with the
equivalent legislators in the EU around baseline
consumer protection standards, it rarely has
involvement with matters in a different country
since the regulations and rules will differ.
For most expats, the only scenario in which the
FCA gets involved is pension transfers, where an
expat is transferring a pension fund from the UK
into an overseas scheme, such as a Recognised
Overseas Pension Scheme (ROPS).
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In this case, the UK regulations state that any
pension scheme or trustee dealing with an
individual requesting a pension transfer worth
30,000 or more must verify that they have sought
independent financial advice before proceeding.
This rule applies to any UK-based pension
transfer, regardless of whether the fund holder
lives in Britain or elsewhere. Otherwise, the
FCA has little or no involvement in financial
products or complaints if they relate to an
overseas financial product or account, a service
delivered by an entity in another jurisdiction,
or are linked to the financial affairs of an
expat who is a tax resident elsewhere.
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Therefore, if a British citizen makes decisions
around their financial affairs based on guidance
from a UK IFA, which has a detrimental outcome,
they have no recourse to file a complaint with
the ombudsman or seek reparations for the damage
caused. Previous rules around passporting also
no longer apply, following the departure of the
UK from the EU, although firms registered within
the European Economic Area (EEA) are permitted to
trade in any jurisdiction without authorisation
from any other member country.
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Why Does the Location of an Expat Financial
Adviser Matter?
The key factor when sourcing financial advice is
to ensure that any adviser you deal with has the
knowledge, ability, and capacity to offer you
personalised guidance based on a wholly
independent and tailored assessment of your
current position, aspirations, and
requirements. Although a minority of fully
independent IFAs may have studied tax law in
another country or focus their services on
pension transfers, it is unlikely they will have
the necessary proficiency in every intricacy of
tax planning in both the UK and another country
to advise on any and all affairs. These might
relate to
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• Wealth taxes
• Income and corporate tax planning
• Cross-border investment
• International capital gains tax
• Overseas succession law and inheritance tax

• Private life insurance and critical illness cover
  
• Tax residency analysis
• Complex pension transfers
• Ongoing wealth management support

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Part of the reason wed suggest you consult a
specialist expatriate wealth manager is that even
an experienced UK-based IFA cannot offer
financial advice related to matters outside of
the UK. Pre-relocation guidance around the best
ways to manage your current assets, investments
or savings products would also be unprotected,
unregulated, and depend on a potentially minimal
understanding of the tax landscape or regulatory
environment in your new country of residence.
On-the-ground financial advisers and wealth
managers, instead, know every intricacy of the
local tax system, the types of exemptions and
allowances that exist, the rules around
transferring funds, pensions or investments into
the relevant country, and the thresholds and caps
that could impact your tax planning.
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How to Find Reliable, Expert Financial Advice
Overseas in English
A common problem for expatriates, particularly
those planning a relocation for the first time or
just beginning to settle into their new home
country, is that, inevitably, most localised
services are delivered in the native language
and translations into English are far from
dependable. We are all familiar with how
automated translations tend to be approximate,
and we do not recommend that anyone rely on this
level of accuracy to make important decisions
about their finances and tax management.
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However, it is equally crucial to avoid making
assumptions about a financial advisers
accreditations, reputation or ability in any
country simply because they produce information
and communications in English. Relying on
English-speaking services without paying
attention to other background checks can expose
you to fraudulent activities or substandard,
unregulated advice that is less dependable than
that delivered in a non-fluent language. Our
suggestion, as always, is to speak with a member
of the global Chase Buchanan network. Local,
fully qualified, and multilingual advisers are
accustomed to supporting clients from around the
world and are accredited, regulated, and insured
across the board.
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We offer comprehensive services to support expat
clients throughout Europe and North America,
bringing together experts at the top of their
fields in managing tax, investments, pensions,
inheritance and insurance, providing long-term
support to ensure our clients make informed,
timely decisions at every stage of life. If
youre concerned about the quality of advice you
have received, are unsure whether an adviser has
the appropriate knowledge to assist or need the
confidence that your adviser has the independence
and skills to offer truly valuable advice, please
get in touch with your nearest Chase Buchanan
team at your convenience.
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Information Source -
https//chasebuchanan.com/independent-financial-ad
viser-support-expatriate/