A New Brand of Financial Management Sweeping the United Kingdom
The Department of Justice has issued several indictments, the Department of Treasury is busy negotiating one bilateral information sharing agreement after another, the IRS is poised to start tracking noncompliant US Persons across the globe, and all these measures in the name of FATCA (Foreign Accounts Tax Compliance Act) have resulted in US Citizens and Green Card Holders being denied foreign financial accounts in foreign banks everywhere.
While many foreign banks are closing their doors to US Citizens and Green Card Holders, there are a few financial firms in the United Kingdom that recognize this New World Order as an opportunity to capitalize on American funds rather than being put off by additional reporting requirements imposed by FATCA.
Foreign Banks Deny US Account Holders
There are a variety of banks in the UK including HSBC, UBS, Brewin Dolphin, and more that are either currently refusing service to Americans or plan to once FATCA guidelines have been implemented. Like many financial institutions in other parts of the world, these banks have decided not to bother with FATCA imposed reporting requirements on American account holders. This decision, though, could be the very catalyst that allows small, independent, foreign financial firms to compete with large and small banks like never before.
Since banks are turning their backs on US Citizens and Green Card Holders to avoid FATCA compliance, there are literally hundreds of thousands of dollars worth of assets in the UK and other foreign countries that are owned by American Expats and being thrown to the wayside – thus creating a wide variety of opportunities for smaller firms to offer tailor-designed services to US Expats.
Financial Services with the US Expat in Mind
Two of the most difficult challenges faces US Expats in foreign countries are:
- Understanding expat taxes and developing a strategy for maximum savings, and
- Being able to ascertain sound international investment advice from foreign consultants.
By offering quality consultation to American Expats living in the UK, this small group of financial managers is capitalizing on funds that were once left untouched in foreign banks and creating a new expectation for wealthy US Expats living in the United Kingdom.
To get the full story please see the FT article.