Phil Billingham on advising ‘world residents’

Skilled Monetary Planner Phil Billingham launches a brand new column for Monetary Planning As we speak Monetary Planning shopper subjects, planning alternatives and views of the occupation.

Decide up any e-book on Monetary Planning, or learn any FCA doc, and it’s extremely clear that they’re written with a selected shopper profile in thoughts. One born, dwelling and dying within the UK, with the occasional two week vacation ‘overseas’. The truth is just not that straightforward.

In accordance with the Workplace for Nationwide Statistics, the 2021 census figures confirmed that in 2021, 10 million (16.8%) of the standard residents of England and Wales had been born outdoors of the UK.

Should you add within the numbers of UK passport holders dwelling overseas (completely, or as ex-pats) – estimated at between 3m and 5m individuals – then that could be a vital quantity of people that don’t match the shopper profile above.


By chance – a protracted story – I spend plenty of my time working with individuals in these teams, and I’d wish to share a few of the joys, challenges, the bear traps and a few of the alternatives:

The fun: Lots of the individuals I take care of are extremely profitable, attention-grabbing and on this planet round them. They are often good firm and engaged within the planning course of. They are usually threat hostile of their private monetary dealings, wanting readability somewhat than the highest performing fund of the final 20 minutes or intelligent tax schemes.

The challenges: Too many of those individuals have encountered the sharks earlier than they met me. In order that they have been scarred by enormous fees, fly by evening salespeople and unfulfilled guarantees. And QROPs. A lot of QROPs. As well as, getting data from German, Swiss or Dubai primarily based schemes is tougher than extracting blood from stones

The Bear Traps: Before everything, don’t, ever, assume that what the UK does applies elsewhere.

  • ‘Tax Free Money’ might not be tax free wherever they’re dwelling.
  • US residents / residents / Inexperienced Card holders are a problem.
  • UK pensions payable to South African residents could – could! – be tax free. In South Africa…
  • Pension switches could also be a taxable occasion for Canadian tax residents.
  • You may be requested to present recommendation on monies or property arising in different international locations – it’s extremely unlikely that regulation permits you to do that legally.
  • East / West time variations are a ache!

Briefly, be very cautious of the phrase ‘usually’ and get tax recommendation within the nation on the different finish of the dialog.

Most UK suppliers should not as arrange for these shoppers as they might be – it requires some cautious due diligence to make sure they can’t solely obtain the property and settle for the shopper however that they’ll additionally pay out advantages and supply correct shopper service.

The alternatives: We reside in an more and more related world, with an estimated 200 million individuals world wide who’ve some type of connection – maybe a couple of generations in the past – to the UK, it implies that UK primarily based Monetary Planners are in a singular place to work with attention-grabbing shoppers who’ve – with honourable exceptions – usually been badly served by monetary providers basically.

It requires care, and a capability to place planning forward of product and a willingness to work in collaboration with different professionals. That ought to match most Monetary Planners’ enterprise constructions very properly.

Phil Billingham FPFS CFP Chartered Monetary Planner, Chartered Fellow (Monetary Planning). He’s a Monetary Planner and a director of Perceptive Planning, a Chartered Monetary Planning agency primarily based in London and Essex.

Biography: Phil joined the trade in 1982 and is a previous director of the Institute of Monetary Planning (IFP) and the Society of Monetary Advisers (SOFA). He’s a previous member of the Monetary Planning Requirements Board (FPSB) Regulatory Advisory Panel. He’s a specialist in serving to advisers deal with regulatory change and has labored with advisers, planners and regulators within the UK, Europe, USA, Canada, South Africa and Australia. Phil is an Affiliate of the Chartered Insurance coverage Institute (ACII), a Fellow of the Private Finance Society, a Licensed Monetary Planner (CFP), a Chartered Fellow – Monetary Planning and a Chartered Monetary Planner. Phil will probably be writing usually for Monetary Planning As we speak.




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