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Guide to advising overseas clients

    Guide to advising overseas clients


    According to statistics from the Office for National Statistics, British citizens accounted for 43 per cent of emigrants in the year to June 2015, with 130,000 moving overseas.

    International migration statistics from the ONS suggested that 79 per cent of all emigrants to Australia in 2014 were British citizens, while Britons comprised 54 per cent of those moving to France and 41 per cent of those going to Spain.

    At the end of 2014, the Royal Statistical Society reported on World Bank estimates that between 4.5m and 5.5m Britons live abroad, which is about 7 to 8 per cent of the UK population.

    While the ONS claims that work remained the main reason given for emigration, accounting for 57 per cent of all emigrants, there are an estimated 1m expat British pensioners living abroad, based on the government’s statistics on state pension claimants.

    So the opportunity set for advisers looking to help those working and retiring overseas is huge.

    However, there are also many challenges facing advisers with ex-pat clients, including global legislative changes for advisers, such as the 2014 European Union (EU) legislation on Prips - the packaging of retail investment products - and the second version of the Markets in Financial Instruments Directive, Mifid II.

    Then there are new rules at home, such as the sea-change in UK pensions legislation in April 2015.

    There have also been amendments to the pension transfer rules post-pension freedom, as well as HM Revenue & Customs’ constant reappraisal of its monthly list of which schemes are, and are not, HMRC qualifying recognised overseas pensions.

    This is not to mention the various yearly tax changes across jurisdictions that create hurdles over which advisers must leap to ensure they are giving appropriate advice to their clients.

    This guide will aim to cover topics such as navigating European Union and UK legislative changes; increasing complications over Rops; avoiding different nation’s taxation hurdles; and various factors to be considered by financial advisers seeking to specialise in offshore advice.

    Supporting information provided by: Marilyn McKeever, associate director, private client, for Berwin Leighton Paisner; Sam Instone, chief executive of AES International; Jason Porter, director for Blevins Franks; Nigel Green, founder and chief executive of the deVere Group; Paul Stanfield, chief executive of the Federation of European IFAs, and the Financial Conduct Authority.


    In this guide


    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. According to the Office for National Statistics, how many expatriate pensioners live abroad?

    2. In what year was the Second Banking Directive created?

    3. According to Mr Stanfield, what will the changes under Mifid II bring in?

    4. When did the first Markets in Financial Instruments Directive come into force?

    5. What has changed about the professionalism requirement under the incoming IDD

    6. How can expatriates avoid paying the French Social Charge on their pension?

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