1. JULY 2011
For Distributors of International Fund, Life and Banking Products www.international-adviser.com
NEWS
Centurion suspends
redemptions on life fund 3
UK orders shake-up of AES, Pershing
and Præmium
Dubai companies are
targeting NRIs
Fund managers are
3 residency and domicile go live with
new platforms
‘unprepared’ for FATCA 3 BY HELEN BURGGRAF make it much more attrac- tax incentives, including
tive for non-doms to invest a reduction in inherit- The growing use of plat-
HMRC approves IoM’s Two UK Treasury papers in the UK, by allowing ance tax when 10% or forms by financial advis-
QROPS legislation 5 currently in consultation them to bring in income more of an estate is gifted ers and their international
New Zealand’s FMA with the industry prom- from foreign investments to charity. clients as a place to con-
warns pension provider 5 ise to bring about a radi- without incurring tax, as The IHT consultation solidate their investments
cal overhaul of both the long as they reinvest it will run until 31 Aug, while is reflected in the almost
Equity Trust appeals residency system and the onshore. responses to the residency simultaneous coming to
against HMRC ruling 6 tax treatment of non-doms It will also increase the and domicile consultations market this month of three
Isle of Man unveils living in the UK. annual remittance charge will be accepted until 9 new ones.
marketing shake-up 6 The first looks at creat- levied on those non-doms Sept. So far the industry AES International,
ing a statutory definition who have been in the UK response has been gener- Pershing and Præmium are
Irish Life Int’l adds to of tax residency, ending for at least 12 of the last 14 ally positive. all in the process of going
funds on Select List 8 the current, often-criticised tax years to £50,000 annu- For more on the live with new platforms,
Kleinwort buyout of Close system in which tax experts ally, from £30,000. residency consultation, see which take advantage of
Offshore is completed 8 have to make what amount An earlier consultation, page 31-32 for an anal- advances in technology to
to educated guesses based also unveiled last month, ysis by Gerry Brown, IA provide more features and
AES Int’l removes EEA on looking at case law. involves a plan to boost tax panelist and head of services than most older
fund from its list 11 The second will shake R&D and charitable dona- trust and tax at Prudential platforms currently on
US adds to expat tax up the domicile rules to tions through the use of International. the market, according to
reporting rules 11 spokesmen from all three
Offshore bond sales leapt 38% in 2010
companies.
Kaupthing IoM depositors All three firms also
claim Iceland victory 13 accommodate international
Lehman mini-bonds BY MARYROSE FISON UK offshore bonds rose to £6.4bn in 2010 from investors, although each
saga draws to a close 13 £4.6bn the previous year, has its own approach and
Sales of UK-distributed Year UK (total new according to new figures target market.
Kremer is elected offshore bonds enjoyed a premiums £bn) released by the Association AES International has
president of EFAMA 14 jump of 38% last year, as ’08 7.78 of British Insurers. had its platform up and
Fund manager undeterred the market rebounded from ’09 4.63 This represents around running – for use by the
by Southern Cross 14 its 2009 low. half the size of the stocks company’s own IFA net-
’10 6.4
Several factors con- and shares Isa market, work – for two years,
FPI aims to boost onshore tributed to the increase, ’11* 1.55 which was worth £12bn in according to Sam Instone,
take-up of products 17 according to life industry Source: Association of British Insurers the tax year 2009-10. managing director at AES,
* First quarter only
experts, including the UK Life industry experts who said this has enabled
RL360° rolls out split
trust option for UK 17 Government’s decision to tax authorities were con- say the rebound seen in it to fine-tune its workings.
cap at £50,000 annually the sidering cracking down on 2010 is expected to con- “But now we are launch-
Percentage of female and amount people may con- the products and closing tinue this year, and are ing it to IFAs outside
young HNWIs grows 56 tribute to their pensions loopholes. planning their businesses our network for the first
without incurring tax. The Total new premiums for accordingly. time, beginning on 1 July,”
Features – page 2 gain also occurred in spite all UK-distributed single- For more details go to www. he said.
of concerns that the UK premium offshore business international-adviser.com Continued on page 5
News Analysis 18-19 MD profile 21-22 Country profile 25-26
Speaking ‘offshore’ Fabrice Sauvignon Dubai All but written
A guide to some The new CEO off following the
of the unusual of La Mondiale global downturn,
words you might Europartner Dubai is regaining
hear if you spend reveals his cross- its confidence as
time in the offshore border business other Gulf centres
financial centres philosophy erupt in turmoil
2. contents
ANALYSIS PROFILES TECHNICAL PORTFOLIO
Offshore terminology Country profile: Briefing: UK statutory Fund selector: Global
18-19 Dubai 25-26 residence test 31-32 high yield bonds 35-38
In many places around the world, While much of the Middle Historically, the rules concerning The sector may seem to provide
locals have invented words to East and North Africa has been residency in the UK for taxation an inexpensive way to generate
describe the foreigners who live consumed by political upheaval purposes have caused confusion income, but one cost has always
recently, Dubai has proven an and resulted in a number of been high volatility. OBSR’s
on their shores; these words,
oasis of calm, thanks in no high-profile court cases. This is Anthony McDonald analyses the
in turn, are often adopted by set to change with the proposed top-performing funds over three
the foreigners themselves. For small part to the emirate’s ruler,
Sheikh Mohammed bin Rashid Al introduction of a statutory years, as newcomers and by AUM
many, moving to live and work definition of UK residency
Maktoum, who has managed to
in offshore centres can involve STATISTICS
learning to speak a new language
Managing director create an environment in which
profile: Fabrice people are encouraged to make
– even where English is spoken money and live prosperously The IA Quality Funds
Sauvignon 21-22 41-46
The newly appointed chief
executive of Luxembourg-based
Intermediary profile: A list of the blue chips
FEIFA 28-29 of the offshore fund world
La Mondiale Europartner talks
about the ‘general account’, a As the trade association
concept the firm has introduced celebrates its second anniversary, Banking deposits 49
to the UK that can be used to chief executive Paul Stanfield The top-paying offshore accounts
offset volatility. He sees the Retail talks about the success it has
Distribution Review as a good had in bringing together English- CLASSIFIEDS
opportunity for cross-border life speaking advisers from across
offices, allowing his company the continent, and in making it Life listings 50-51 Recruitment 53-55
to demonstrate its values to both easier for individual members Find the job that suits you in IFA
advisers and end customers to cope with EU regulations Service listings 52 firms operating around the globe
IA Intermediary Panel IA Tax Panel
Graham Barnes Tony Shah Simon Liew Margaret Jago Rachael Griffin
Director, Associate Investment International Head of product
international director, Christ- strategist, In technical law and financial
division, church Investment My Opinion, manager, planning, Skandia
The Fry Group, UK Mgt, UK Singapore Aegon Ireland International
Peter Sayers Tim Searle Sean Kelleher Gerry Brown Mark Green
Director, financial Chairman, Chairman, Head of trusts Head of estate
planning, Globaleye Financial Partners and taxation, and tax planning,
Horizon Financial Group, Dubai Prudential Legal & General
Services, Jersey International
Nick Cann Gary Boal Robert Parker Brendan Harper Julie Hutchison
Chief executive, Managing Chief executive, Technical Head of estate
The Institute director, Holborn Assets, services planning,
of Financial Boal & Co, Dubai manager, FPI Standard Life Int’l
Planning, UK Isle of Man
Eleanor Wan David Bojan Mahmoud Brian Murphy Neil Chadwick
Chief executive Managing Nodjoumi Senior financial Technical
officer, Institute of director, HFS Chairman and planning manager, Royal
Financial Planners Asset Mgt, chief exec, Nexus manager, London 360º
Hong Kong Hong Kong Group, Dubai Axa Sun Life
Ernest Chan Sam Instone Michael Porter Paul Kennedy Sandra Hogg
Chief commercial Director, AES Chief invest Business Senior tax
officer, Convoy International, UK officer, Harvard development manager, Scottish
Financial Services, House Investment director, Widows
Hong Kong Mgt, South Africa FundsNetwork
Bill Blevins Alan Binnington Jeremy Croysdill Chris Allatt Anthony Rothwell
Managing Private client Head of tax Senior tax Technical
director, Blevins director, services, consultant, consultant,
Franks, RBC Wealth Kleinwort Benson, Sanlam UK Canada Life
pan-Europe Mgt, Jersey UK International
2 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
3. NEWS
NEWS
Malta FSA gets
dragged into
Centurion redemptions on IN BRIEF
battle over La traded life fund suspended EEA fund gets
Singapore approval
Vallette fund BY SIMON DANAHER It explained that a sig- its books, it would do so
EEA’s Life Settlements
Fund has been
BY HELEN BURGGRAF nificant shift in the expect- at a loss. registered for sale in
Centurion Fund Managers ed discount rates on the To rectify this, Centurion Singapore. Investors
The Malta Financial Services has temporarily suspend- purchase of life policies in plans to move all existing there will be able to
Authority has been drawn ed redemptions from its the US, from an average assets into a newly created gain direct access to
into an increasingly fierce traded life policy Argent of between 10% and 16% “side pocket” until “market the absolute return
row between hundreds Fund, and warned those at the time of purchase to conditions improve and fund for the first time.
of investors in a poorly- investors who do wish more than 25% in the cur- death benefits occur”. The The fund manager is
performing property fund to redeem that they risk rent market, coupled with firm expects the market to expanding in Asia and
– managed by a Bank of losing up to 50% of their a “lower than anticipated improve in between three opened its first regional
Valletta (BoV) joint ven- original investment. level of policy maturities” and five years. office in Singapore
ture with UK-based Insight In a letter sent to in the portfolio, had creat- But those who wish to earlier this year.
Investment Management shareholders last month, ed a “liquidity imbalance” redeem now will not have
(Global) – and the bank. Centurion said it decided in the Argent Fund. their shares moved to the Wheatley leaves
The battle over the to take the action to pro- The increase in the side pocket, and are likely HK for London role
La Valette Multi-Manager tect existing investors in discount rate effectively to lose a significant amount
Martin Wheatley has
Property Fund is being the fund after it received means that, should Centur- of their initial investment
stepped down from his
seen by some as a test redemption requests from ion decide to sell any of when their assets are sold.
role as chief executive
of the MFSA’s proficiency “several large investors”. the life policies it has on Continued on page 6
of Hong Kong’s
as a regulator at a time
Securities and Futures
when Malta, which joined
the EU in 2004, is seek-
ing to establish itself as a
Dubai companies show increasing interest in NRIs Commission. He is
returning to the UK to
head up the Financial
world-class financial serv- Advisory firms and life expatriate population. Conduct Authority,
ices centre. companies based in Dubai Friends Provident Inter- which will replace the
Events were continuing are increasingly targeting national (FPI) has also FSA, in September.
to unfold as IA went to the non-resident Indian identified the NRI market
press, because a settlement population as they seek to as a growing client base.
offer announced in May diversify their client base Matthew Waterfield, IFIA planning to open
by the BoV to buy back away from UK expats. general manager Middle five new offices
shares in the beleaguered Firms such as Mondial East and Africa at FPI, said: The Irish Funds
fund from the investors, at Financial Partners and “There are key differences Industry Association is
a price of €0.75 ($1.07) a Holborn Assets have been in the way the NRI market to open representative
share, was due to expire actively recruiting advisers looks at financial planning offices in the US and
on 30 June. from Indian and Pakistani Waterfield: ‘key differences’ compared to Westerners,” the UK in a joint
Many investors were said backgrounds to target he said. “For example, venture with IDA
to be reluctant to accept these areas of the market. Asian. Within this it is esti- extended family is impor- Ireland, the Irish
what they regarded as an According to official mated that around half tant to Indians, so our pro- government’s inward
inadequate price for their estimates, around 85% of are from India and just tection and saving products investment agency.
shares, particularly while the population of Dubai over 15% are Pakistani. In will be attractive to them.” The association will
full details of the findings of is made up of expats, of comparison, Westerners See Country Profile on have representatives
an MFSA investigation into which around 70% are make up around 3% of the page 25-26 on the ground in New
the BoV fund were only York, Boston, Chicago,
just beginning to be made Atlanta and London.
available, although only to
certain investors. This was
Fund managers ‘unprepared’ for FATCA Vistra Jersey acquires
an about-face by the MFSA, Fund managers and invest- said, in unveiling its find- the Foreign Account Tax Herald funds
which initially said it would ment managers are largely ings last month. Compliance Act (FATCA),
Vistra Jersey has
only publish the conclu- unprepared for the impact The new law is also while 45% of fixed income
acquired funds under
sions of its investigation. of new US legislation that going to cause some inves- funds and 42% of equity
the administration of
Following its inves- will oblige non-US finan- tors to sell out of their US funds refused to rule out
Herald Fund Services,
tigation, the MFSA said cial services firms to regis- holdings, the report finds, the possibility of leaving a member of the
last month that it was to ter with the US tax authori- although exactly how the US market as a result Herald Group in
fine the BoV and Valletta ties if they have US clients many or on what scale has of the legislation. Jersey. Existing clients
Fund Management or assets, a report from yet to be seen. FATCA, which will and Herald’s fund
€347,816 for regulatory KPMG has warned. Some 6% of the fund require details of US cli- administration staff
breaches in connection Only one-third, or 32%, promoters across 12 coun- ents with assets in excess will join Vistra in July.
with the fund, which, of fund managers sur- tries who were interviewed of $50,000 to be passed to
though not significant by veyed, expect to be ready by KPMG’s researchers the US Internal Revenue
For the current and all
international standards, in time for the deadline, said they definitely would Service, comes into force
previous editions, with
was said to be the largest “and a significant 42% have disinvest from both the US on 1 Jan, 2013. full news archive, go to
fine ever imposed by the not yet assessed the time equity and fixed income The survey may be found at www.international-adviser.com
MFSA in such a case. needed to comply”, KPMG markets as a result of www.kpmg.com.
JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 3
5. NEWS
NEWS
HMRC gives nod to Isle of IN BRIEF
Man’s QROPS legislation UK and China sign
double tax treaty
BY HELEN BURGGRAF at this point had already effectively halted. A new double taxation
received letters saying that At that point, just one treaty has been agreed
HM Revenue & Customs they had been accepted, 50c scheme, Boal & Co’s by China and the
has signed off on the Isle and giving them a QROPS Trinity Plan – which was UK. This replaces
Batty: pensions unit relaunch of Man’s 50c QROPS legis- number. initially registered in the existing treaty
lation, allowing companies Among these schemes October 2010, shortly after that was signed in
John Batty is that had schemes awaiting
the regulator’s acceptance
is the Baker Tilly Isle of
Man QROPS Sipp, and
the 50c-enabling legislation
was passed – had made it
July 1984. One of
the main changes is
named head to begin to market them
to clients.
IoM-based pension pro-
vider Sipp Specialists’ Sipp
onto HMRC’s all-important
list of QROP schemes.
that withholding tax
on dividends from a
The formal notification Specialists 2010 Scheme. Pre-existing Isle of Man Chinese company is
of pensions at that HMRC had completed The Isle of Man unveiled QROPS, which had been reduced to 5%, as long
a review, announced in its new 50c QROPS legisla- set up before the legis- as the recipient is a
BW Oakfield December, was received at tion last year, but after lation was approved that UK company owning
at least 25% of the
the end of last month. HMRC announced its made the 50c QROPS pos-
Isle of Man-based BW However, a number review, the registration of sible, were not affected by shares. Previously the
Oakfield Group has of Isle of Man companies any new 50c schemes was the review. withholding tax rate
appointed John Batty as was 10%.
head of pensions, a new
position, as the company New Zealand’s FMA issues warning to pensions Global Benefits
looks to expand its pen- promotes Macdonald
sion operations. provider SuperLife Trustees over sales practices Angela Macdonald
For the last two-and-a- is to head up sales
half years, he has been BY SIMON DANAHER investors to be wary of need to make an informed in Africa for Global
business development “unacceptable” sales prac- decision. Benefits Group,
manager for the insurance The New Zealand Financial tices being used by unreg- The FMA said it is also the London-based
and pensions sector at Isle Markets Authority has told istered KiwiSaver sales rep- concerned about the dis- international group life
of Man Finance, the island’s QROPS and pension pro- resentative Patrick Diack. tribution practices of and disability insurance
financial services business vider SuperLife Trustees According to the FMA, the SuperLife KiwiSaver specialist. The position
promotional office. to “overhaul” its sales Diack’s sales approaches Scheme, a registered is a new one and was
Prior to this, he was practices for its KiwiSaver included soliciting mem- QROPS. created in response
technical manager at Axa products. bers of the public out- Hughes said: “From 1 to recent growth in
Isle of Man, and before FMA chief executive side Work and Income July, FMA will monitor the company’s Africa
that worked for HSBC Sean Hughes said he is (employment centre) offic- compliance by KiwiSaver business. She has been
Insurance in Dubai. seriously concerned about es, offering clients money providers with their working for Global
Batty’s appointment a number of matters to join a KiwiSaver scheme obligations under the Benefits for the past
comes a few months after regarding SuperLife’s sales and signing clients up to Financial Advisers Act. four years.
BW Oakfield, a division practices, potential non- scheme membership with- We will not hesitate to
of UK-based Kreston Inter- compliance with the law out providing them with take enforcement action ML Capital readies
national, merged with EIS and “apparent poor moni- the investment statement against KiwiSaver provid-
Advisors, an Isle of Man toring of the activities of its – the disclosure document ers who fail to ensure they Skyline Ucits Fund
accountancy firm. sales force”. that provides investors comply with their legal ML Capital is poised
BW Oakfield is a corpo- The FMA also urged with the information they requirements.” to launch a Ucits fund
rate services provider that that will feature on
manages and administers the Montlake Ucits
more than 600 trusts and
corporate entities, with
Three firms roll out platforms this month platform and begin
trading on 1 Aug,
underlying assets worth Continued from page 1 with its new, multi-currency Pershing Adviser Solutions, subject to regulatory
more than £2bn ($3.2bn). Instone described the plat- offshore platform, has been according to Paul Bayliss, approval. The Skyline
At BW Oakfield, Batty form as an equity- and fund- approved. Once it is, it will the firm’s head of adviser Ucits Fund will
will head up the compa- focused, open-architecture be all systems go, accord- and retirement solutions. operate a global long/
ny’s pensions unit, which facility that is intended for ing to John Martin, MD of Although the new plat- short mandate with
is being relaunched under use by IFAs, wealth man- Præmium’s London-based form is UK adviser/wealth a particular focus
the Kreston International agers and execution-only UK operation. manager-focused, it accom- on emerging markets.
brand. clients. The Præmium Discre- modates offshore funds, ML Capital expects
the launch to be the
BW Oakfield group As International Adv- tionary Platform Service is and has “already engaged
largest to date on
managing director Stewart iser was going to press, intended to be accessed with a number of clients in
the Montlake Ucits
Davies said Batty’s “signifi- Australia-based plat- by discretionary managers Ireland”, Bayliss said.
platform.
cant contacts worldwide” form provider Præmium looking to provide services He described Pershing’s
would help the firm to was awaiting word from for adviser firms as well target audience as “growth- For the current and all
increase its international Jersey’s Financial Services as their own client base, oriented, advice-based previous editions, with
trust services business. Commission that its appli- according to Martin. firms [which look after] full news archive, go to
See Isle of Man marketing cation for an asset manage- Pershing is also poised clients with complex fin- www.international-adviser.com
story on page 6 ment licence, in connection to formally unveil its new ancial lives”.
JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 5
6. NEWS
CySec warns
investors about
Equity Trust appeals against Redemptions
suspended on
unregulated
asset manager
HMRC ruling on Singapore Centurion TLP
Continued from page 3
BY SIMON DANAHER “window” of between 10 lated by the Singaporean Centurion has given
The Cypriot investment reg- Nov, 2011 and 12 March, pension regulator, when in investors until between
ulator is warning investors Equity Trust last month 2012 in which to be heard. fact it could have been, also late June and early July to
not to use asset manage- filed an appeal against a Equity Trust’s Singapore- as required under QROPS decide whether or not they
ment company Plaza Capital High Court ruling which based Recognised Overseas rules. Equity Trust has wish to redeem.
as it is not authorised. decided in favour of HM Self Invested International consistently refuted these In addition to creat-
The Cyprus Securities Revenue & Custom’s deci- Pension (ROSIIP) had its arguments. ing the side pocket, the
and Exchange Commission sion to remove the QROPS QROPS status removed The ruling, if it stands, company is to change its
(CySec), which licences status of one of its schemes. in 2008 after HMRC could pave the way for the pricing model from the
Cypriot investment firms, As International Adviser decided that it did not Revenue to tax the more mark-to-model, whereby
released a statement last was going to press, no satisfy the criteria set than 100 investors in that the fund’s value is dictated
month warning inves- hearing date had been out in the Finance Act 2006 scheme up to 55% of the by actuary assumptions on
tors that the company is given. for QROPS. amount they had trans- life expectancy, to mark-
not permitted to provide After Equity Trust filed On 20 May, a High ferred into ROSIIP. to-market, meaning the
“investment and ancillary its appeal, both it and Court judge decided that Panthera managing price is dictated by the
services” in Cyprus. HMRC had 14 days in ROSIIP was not open to director Bethell Codrington rate it can be sold at on
CySec said Plaza Capital which to submit a skel- Singaporean residents, as said he could not comment the market.
has never been authorised eton case to the Court of required under QROPS on the case because it was Centurion said it
in Cyprus as an investment Appeal. The case has a rules, and was not regu- ongoing. believes it is the first traded
company, bank or coop- life policy company to do
Isle of Man marketing shake-up unveiled
erative to provide invest- this, and said it is able to
ment services. It added do so using the values
that it has not been con- given to it by investment
tacted by any other EU BY HELEN BURGGRAF the new strategy. banks on a monthly and
member state regulator to AND MARYROSE FISON The IoM expects to quarterly basis.
confirm that Plaza Capital announce an appointment Director of the fund
has any form of investment The Isle of Man govern- on 21 July, the spokesman David Rawson-Mackenzie
authorisation. ment has unveiled a radi- said. said: “We are giving our
According to its web- cal shake-up in the way it The creation of a new investors the opportunity
site – which offers trans- promotes its financial serv- strategic body, consist- to remain in the fund and
lations from the original ices and related industries, ing of between 12 and 20 benefit from the continu-
Greek into both Russian which will involve the industry representatives, is ing maturity of policies and
and broken English – Plaza creation of a new “public also planned, to help drive an expected upturn in the
Capital provides asset man- private sector promotion the strategy forward as it is life settlement market.
agement and cash depos- model”. Spellman: market changes cited rolled out. “As a fund manager, I
it services to individuals This new promotional John Spellman, spe- did not want to make all
and “trustees”, although its model will provide for the The new initiative will cial adviser to the Isle of of our investors pay for the
definition of trustee is not sharing of resources and start with the island’s fund Man government, said the decision of some, which is
given. funding between all par- management and admin- government was react- why we have decided to
The website, which has ties, the IoM’s Department istration industry, with ing to changes in the create the side pocket to
the slogan “based on expe- of Economic Development other island industries set marketplace. protect the assets.”
rience, racing the time”, said in a statement. to follow. Allan Bell, the island’s He added that a major
claims that the company The total budget for Among the first actions Economic Development reason the market discount
is a leading investment financial services promo- expected to be taken minister, said the IoM’s rate for policies has reached
bank and lists addresses in tion will be more than £2m include the recruitment new promotional strategy current levels is the forced
Cyprus and Russia. and less than £5m, spread of direct marketing rep- seeks to employ what he selling of around $6bn
In its warning letter, over two years, an Isle of resentation in London for has always regarded as worth of assets by Belgian
CySec urged investors to Man spokesman said. He the funds sector, and the one of the Isle of Man’s bank KBC last year. Many
consult companies’ web- added that this is a marked appointment of a head of strongest attributes, “the of the assets were of “dubi-
sites to confirm whether a increase in the budget com- financial services develop- close working relationship ous origin”, which forced
business is regulated prior pared to last year, but did ment, whose job it will be between the public and policy sellers into discount-
to using its services. not provide details. to manage and coordinate private sector”. ing heavily in order to sell.
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6 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
7. T R U S T E D H E R I TA G E A D VA N C E D T H I N K I N G
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8. NEWS
Kleinwort completes its Irish Life Int’l boosts range
buyout of Close Offshore
Kleinwort Benson has
completed its acquisition
Sally Tennant, chief exec-
utive of Kleinwort Benson,
of funds on its Select List
of Close Offshore Group. said: “The acquisition of BY SIMON DANAHER Conor McCarthy, head
The acquisition, which Close Offshore Group fol- of sales and marketing,
was announced in March lows our strategy of devel- Irish Life International is said: “The development of
this year, is for a cash oping our offshore capabili- increasing the number the new suite is in response
consideration of £26.4m ty. This strategic acquisition of funds accessible via to market demand for a
($42.3m), subject to post- adds scale to our banking its insurance products quality-focused range of
closing adjustments, and and fiduciary businesses through a new fund range internal funds. The prod-
comprises Close’s private and will enhance our client called Select List. ucts now offer the best
banking, fund administra- offering with the addition The Dublin-based life of both guided and open
tion, fund management, of innovative products and insurance company said architecture.”
trust and asset manage- new distribution channels. the new range, which In February, SEB Life,
ment businesses across The combined business will is available through its McCarthy: ‘market demand’ a subsidiary of the SEB
Guernsey, Jersey and the have strength and depth in Portfolio products, will Group, a large, publicly-
Isle of Man. terms of its people, services “significantly” increase the Global Investors/Gartmore, traded Stockholm-based
Kleinwort said the and systems.” number of funds available BlackRock, HSBC Global bank and financial services
acquisition will increase the Kleinwort Benson is to clients. Asset Management, Mor- provider, announced it had
size of its private wealth a wholly-owned subsidi- ILI said there will ini- gan Stanley Investment agreed a purchase of ILI
assets under management ary of RHJ International, tially be 80 funds available Management, JPMorgan from its parent, Irish Life
by £1.6bn ($2.5bn), and a Brussels-based holding on the new fund platform Asset Management and & Permanent Group hold-
extends its offshore reach firm. It was sold to RHJ in from across all the main Schroders. ings, for €26m ($37.5m).
into South Africa and 2009 by its previous owner, asset classes offering inves- ILI said Select List will The deal, which is
the Isle of Man. It is also Germany’s Commerzbank, tors geographical and man- be made available first in expected to complete this
expected to strengthen the which gained it when it ager diversification. Belgium and Spain, with month, is currently await-
firm’s banking proposition acquired Dresdner bank The range will include the new fund options ing regulatory approv-
in terms of liquidity and in 2008 from German funds from asset manag- being rolled out to other al by the Central Bank
capital. insurer Allianz. ers including Henderson jurisdictions at a later date. of Ireland.
QROPS from a provider you trust
With an ever increasing number of QROPS providers in For further information, please contact:
the market place, identifying bona fide schemes can be
Clive Barton, Senior Partner
a problem. With Moore Stephens, you can be assured that
Tel: (0)1534 880088
our Guernsey based QROPS is a fully regulated and HMRC
E-mail: info@moorestephensqrops.com
recognised pension scheme. With over 600 offices located
in 98 countries, Moore Stephens is well placed to offer a
fully integrated service for all your clients’ needs, including
the most commonly overlooked aspect, the tax treatment
of the QROPS in the client’s country of residence.
www.moorestephens-jersey.com PRECISE. PROVEN. PERFORMANCE.
Moore Stephens is regulated by the Jersey Financial Services Commission in the conduct of Trust and Company Services Business and Fund Services Business.
9. If you’re looking for tax-efficient
An offshore solutions for your clients’ finances,
bond that has AEGON’s Wealth Management Portfolio
is packed with an array of features
all the answers to make the most of their money.
in one place Guide your clients to the right destination for their money,
with an offshore bond offering them tax efficiency,
tax-planning solutions, investment solutions, a 5-star
Defaqto rating...
Plus, a new European portability option, developed based
on advice from Deloitte PCS Ltd, allowing your clients
to move to France, Italy or Spain (now or in the future)
and maintain full income-tax efficiency.
So, if your clients are looking for an offshore bond
with so many features in one place, look no further
Investments can go down as well as up and your clients
than our Wealth Management Portfolio. Find out more
may get back less than they invested. This information at www.aegon.ie/wmp
is based on our understanding as at April 2011 of the tax
legislation for the UK, Republic of Ireland, France, Italy and
Spain, which may change. Your clients should always seek
professional tax advice.
For financial advisers only — not for private customers
Pensions Investments Protection
AEGON is a brand name of AEGON Ireland plc. AEGON Ireland plc, registered office: 2nd Floor IFSC House, Custom House Quay, Dublin 1, Ireland.
Registered in Ireland (No. 346275). Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Services Authority.
Details about the extent of our regulation by the Financial Services Authority are available from us on request. An AEGON company. www.aegon.ie
10. HMRC QROPS
QROPS has only one face Approved
Offshore Bond
The Close Guernsey Personal Retirement Plan links to major life
companies
The ideal offshore pension for UK expats
Key benefits for you the Advisor
Advise on your clients’ pension assets,
wherever they live
Upfront commissions & ongoing quarterly
remuneration
A Blue Chip pension provider
Competitively priced
Key benefits for your clients
Pension income paid without the deduction
of income tax (excluding Guernsey residents)
No capital gains tax or income tax charged
on the assets within the Plan
Consolidation of UK pensions in an offshore
structure
No cap on value of transfer(s) or contribution(s)
Multi-currency – £, e, US$
Tax, estate, domiciliary & succession planning
Competitive pricing
Diverse investment choice
Experienced administrators
Established since 2006
Well regulated jurisdiction
Contact us today for full product details and
specialised broker promotional support.
Adrian Flambard – Managing Director, Business Development
Tel +44 (0)1481 726014. Email qrops@closeam.com
www.closeqrops.com/ia
This is a financial promotion and is not intended as investment advice.
For Professional Advisors only and not for distribution to retail clients.
Close Trustees Guernsey Limited is licensed under the Regulation of Fiduciaries, Administration Businesses and
Company Directors etc. (Bailiwick of Guernsey) Law, 2000 and regulated by the Guernsey Financial Services
Commission. Its registered office is at Trafalgar Court, Admiral Park, St Peter Port, Guernsey, Channel Islands,
GY1 2JA, registration number 5737. Close Trustees Guernsey Limited is a subsidiary of Kleinwort Benson
Channel Islands Holdings Limited, the ultimate parent of which is RHJ International S.A. which is listed on the
Brussels Stock Exchange. BW_5734_V4_13062011
11. NEWS
Brewin Dolphin to
acquire Tilman AM Adviser group removes EEA
for up to £31.5m
Brewin Dolphin is to pur-
chase Irish asset manager
fund from its approved list
Tilman for as much £31.5m BY SIMON DANAHER because it aims for the list cerns on research conduct-
($50.5m), as it looks to to be as risk-averse as pos- ed by WL Consulting.
capitalise on investors’ dis- Adviser group AES sible and, pending a suffi- EEA marketing director
satisfaction with banks and International has removed ciently reassuring explana- Peter Winders denied that Smith: ‘particular expertise’
other institutions. the EEA Life Settlements tion from EEA, it felt it ViaSource – while serving
Brewin will pay an initial
£18.3m ($29.3m) upon
Fund from its list of
approved funds, after rais-
prudent to remove the fund
– something it said it does
as the fund’s US-based spe-
cialist investment adviser – Nigel Smith to
completion of the deal,
with a further £13.2m
ing concerns with the
fund’s manager, EEA Fund
“all the time” with funds,
along with adding them.
valued the fund, and added
that he was disappointed head deVere’s
($21.1m) payable in Dec-
ember 2014, dependent on
Management.
The fund’s managers
Among its concerns,
AES said, was the relation-
the fund had been removed
on the basis of a report he international
the performance of Tilman
to September 2014.
said AES’s concerns were
unfounded, and the infor-
ship between ViaSource,
the US-based company
understands was commis-
sioned by a competitor and technical team
The entire consideration mation on which it made responsible for valuing the which he said was “factu- Nigel Smith has joined the
is payable in Brewin its decision was based on assets of the traded life ally incorrect and arguably deVere Group as global
shares, with Tilman to be inaccurate research. policies fund and EEA, misleading and biased”. technical manager, a new
renamed Tilman Brewin AES said the fund was which it said left open the “We pride ourselves on position that the company
Dolphin. primarily removed from its potential for a conflict of transparency and welcome said was created to support
The rationale behind list of approved funds interest. AES based its con- calls,” he said. its international expansion
the deal centres on the plans while offering more
opportunity created by cli- services to its clients.
ents “moving from banks
and other institutions,
US adds to expatriate tax reporting rules Until the end of last year,
Smith, who is based in
which were dominant in BY HELEN BURGGRAF pliance Act approaches. than $50,000 will have to Malta, had been head of
our field” as a result of For years, US citizens begin filing a new docu- wealth management
the Irish financial crisis, The US Internal Revenue with offshore bank ment, known as “new (Middle East) for Friends
Brewin said. Service has added to the accounts have had to file a Form Number 8938”, Provident International
“We are excited about information it requires from Foreign Financial Account according to David Treitel, (FPI), the Isle of Man-based
the prospect of capitalising US citizens who have over- Reporting (FBAR) form, tax director at US Tax & international arm of
on what we perceive as a seas banking and invest- annually, whether they live Financial Services, a Resolution’s Friends Life
big opportunity in Ireland,” ment accounts – including in the US or abroad. London-based company Group.
said Jamie Matheson, exec- those living abroad – while Some individuals also which specialises in look- At FPI, Smith has been
utive chairman of Brewin bowing to pressure to have to inform the IRS ing after the tax matters of succeeded by Alan Loader,
Dolphin, a London-based amend its latest tax amnesty about any investments they expatriate US citizens. whose title is technical
private client wealth man- programme, criticised for may have in so-called pas- The first of these to be manager, and who had
ager with AUM of £25bn being particularly tough. sive foreign investment filed by US taxpayers will been technical and devel-
($40bn). The latest measures companies (PFICs), foreign report on assets they have opment manager in
Tilman had funds under come as the 1 Jan, 2013 companies, foreign part- held since 1 Jan, 2011 and individual and corporate
management of £807m start date for the imple- nerships and foreign trusts. the potential penalties savings at Zurich
($1.2bn) as at 30 April, 70% mentation of the US’s However, beginning in for failing to file this new International Life.
of which are managed on a increasingly controversial 2012, those with foreign form “are substantial”, Smith is a 25-year vet-
discretionary basis. Foreign Account Tax Com- financial assets of more Treitel said. eran of the industry and
has particular technical
expertise in the areas of
Bank deposits in Crown Dependencies flatline in Q1 taxation, trusts and finan-
cial planning matters,
The total value of deposits cation of light at the end of according to deVere.
Crown Dependency bank deposits Q1 ’11
held in the Crown Depen- the tunnel”. But he noted At deVere, he will be
dencies’ banks collectively Crown Bank assets end ’10 Bank assets % increase/ that it would be wrong to involved in supporting
rose a scant 1.4% in the dependency (% up or down from end March ’11 decrease in overstate the gain, coming financial advisers on the
end ’09) first quarter
first three months of 2011, as it did after three quarters technical issues involved in
as savers looked beyond Jersey £161.6bn (-2.2%) £166.49bn +3% of contraction. developing wealth man-
deposit accounts for better Guernsey £111.03bn (-5.4%) £112.9bn +1.7% Guernsey’s end-of- agement business with
rates. IoM £50.23bn (-5%) £48.13bn -4.2% March total deposit figure high net-worth expatriates,
Philip Marr, director of is 28% off the peak, deVere said.
Total £322.86bn (-3.8%) £327.52bn +1.4%
banking at the GFSC, noted reached at the end of 2008, Smith is an associate of
Source: JFSC, GFSC, IOMFSC
that the first-quarter story of of £157bn ($251.7bn). the Chartered Insurance
Guernsey’s banking indus- “There were no clear cut Finance chief executive, Jersey’s data showed Institute and a member of
try was one “of an increase trends, with mixed move- added that Guernsey offi- that deposits from Middle the Personal Financial
in the volume of deposits” ments in balance sheets, cials were hopeful that Eastern savers have grown Society and the Society of
that was mostly reduced in including contractions and Guernsey’s 1.7% rise in as a percentage of the total Trust & Estate Practitioners.
sterling terms by foreign expansions,” Marr said. quarterly deposits, the first to 12.1% from 10.4% at the He has won a number of
exchange effects. Peter Niven, Guernsey rise in a year, was “an indi- end of March 2010. industry-sponsored prizes.
JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 11
12. IF OUR FIRST TEN
YEARS ARE ANYTHING
TO GO BY, YOU WON’T
WANT TO MISS THE
NEXT TEN.
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ago, little did we realise the challenges
that would face us! But just as fine steel
is forged in fire, so it is with a great
company. VAM Funds hasn’t merely
10 YEARS DELIVERING OUTSTANDING RESULTS
survived the most torrid financial crisis
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since the Great Depression, we’ve
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Adapting to a changing economic climate, all VAM’s funds It allowed us to test our mettle - to ensure
are now invested in liquid strategies or asset classes that are our funds are the best administered,
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and among the most rewarding funds
VAM’s roots in the financial adviser industry give us a better
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thrive during the tough times, imagine
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Visit www.vam-funds.com today.
looking ahead
For further information on VAM Funds please contact VAM Marketing on + 230 465 6860 or
email us at info@vam-funds.com. Alternatively visit our website at www.vam-funds.com
This financial promotion is published by VAM Funds (26 Avenue de la Liberté L-1930 Luxembourg). For professional investors only. Authorised by the Financial Services Authority (UK). This
is not an offer to purchase shares, which may only be bought under the terms of the prospectus. The value of shares may go down as well as up. Changes in the rate of currency
exchange may cause the value of the investment to go down or up. Past performance is no guarantee of future results.