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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
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
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
Financial Strength Rating
  A
  M   BEST
       B++ Good
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
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
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




                                                           Tuned                    into local knowledge
                                                                                     The faster the pace of change, the more important it is to keep an ear to
                                                                                     the ground at the local level.
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For Professional Investors or Advisers Only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise. Issued in June 2011
by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 2015527 England. Authorised and regulated by the Financial Services Authority. w40023
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.
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...
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                                                                                                                                 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
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
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
IF OUR FIRST TEN
                                                          YEARS ARE ANYTHING
                                                          TO GO BY, YOU WON’T
                                                            WANT TO MISS THE
                                                                     NEXT TEN.
                                                                                                 When VAM Funds started up ten years
                                                                                                 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
    13 funds fully regulated in Luxembourg - UCITS III
                                                                                                 since      the     Great       Depression, we’ve
    From one small cap equity fund to a full range of US and global                              actually thrived!
    equity funds, bond funds and multi-asset funds.

    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,
    either daily or, at the most, weekly dealing, meaning our clients
                                                                                                 the most secure, the most efficient,
    always have access to their capital.
                                                                                                 and among the most rewarding funds
     VAM’s roots in the financial adviser industry give us a better
                                                                                                 available. If VAM Funds was able to
    insight into what IFAs need in terms of service and support.
                                                                                                 thrive during the tough times, imagine
                                                                                                 how well we will do when the boom
                                                                                                 times return.



                                                                                                 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.
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Investors Trust Ad

  • 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
  • 4. Financial Strength Rating A M BEST B++ Good
  • 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. Stephen Grasso Head of production Mark Jennings Head of online Keeley Parsons Circulation manager SUBSCRIPTIONS T +44 (0)20 7065 7571 T +44 (0)20 7065 7562 T +44 (0)20 7065 7578 subscriptions@lastwordmedia.com or go to www.international-adviser.com E stephen.grasso@lastwordmedia.com E mark.jennings@lastwordmedia.com E keeley.parsons@lastwordmedia.com PUBLISHER Helen Burggraf Acting editor Dean Andrews Production editor Emily Proctor Head of event operations Tom Porter Manager director (Asia) Last Word Media (UK) Ltd, 4th Floor, T +44 (0)20 7065 7568 T +44 (0)20 7065 7570 T +44 (0)20 7065 7561 T +65 9781 3401 120 Moorgate, London EC2M 6UR, UK E helen.burggraf@lastwordmedia.com E dean.andrews@lastwordmedia.com E emily.proctor@lastwordmedia.com E tom.porter@lastwordmedia.com Last Word Media (Asia) Pte Ltd Simon Danaher Senior online reporter Ben Wiseman Associate publisher Victoria Parker Senior event coordinator Level 25, North Tower, One Raffles Quay Jamie Hinchliffe Publishing director Singapore 048583 T +44 (0)20 7065 7577 T +44 (0)20 7065 7573 T +44 (0)20 7065 7564 T +44 (0)20 7065 7572 E simon.danaher@lastwordmedia.com E ben.wiseman@lastwordmedia.com E vicky.parker@lastwordmedia.com E jamie.hinchliffe@lastwordmedia.com PRINTING Ian Allan Printing Ltd, Hersham, Dylan Emery Editorial director Giles Whittingham Sales executive Elspeth Campbell Events assistant Rod Boulogne Managing director Surrey KT12 4RG; Tel +44 (0)1932 266600 T +44 (0)20 7065 7565 T +44 (0)20 7065 7579 T +44 (0)20 7065 7583 T +44 (0)20 7065 7560 E dylan.emery@lastwordmedia.com E giles.whittingham@lastwordmedia.com E elspeth.campbell@lastwordmedia.com E emily.proctor@lastwordmedia.com 9,898 July ’09 – June ’10 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 Tuned into local knowledge The faster the pace of change, the more important it is to keep an ear to the ground at the local level. With a team of 34 emerging market investment specialists based in 8 countries1, spanning the world from São Paolo to Shanghai, Schroders has the global reach and local perspective to uncover the most exciting opportunities in emerging markets, wherever they are. If you’re looking to capture the full diversity and potential of the world’s most dynamic economies, Schroder ISF* Global Emerging Market Opportunities is the ideal fund. Schroder ISF Global Emerging Market Opportunities www.schroders.com 1 Source: Schroders, as at March 2011. *Schroder International Selection Fund is referred to as Schroder ISF. Morningstar rating as at 31 May 2011, rating is for A accumulation share class. For Professional Investors or Advisers Only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise. Issued in June 2011 by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 2015527 England. Authorised and regulated by the Financial Services Authority. w40023
  • 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. When VAM Funds started up ten years 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 13 funds fully regulated in Luxembourg - UCITS III since the Great Depression, we’ve From one small cap equity fund to a full range of US and global actually thrived! equity funds, bond funds and multi-asset funds. 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, either daily or, at the most, weekly dealing, meaning our clients the most secure, the most efficient, always have access to their capital. and among the most rewarding funds VAM’s roots in the financial adviser industry give us a better available. If VAM Funds was able to insight into what IFAs need in terms of service and support. thrive during the tough times, imagine how well we will do when the boom times return. 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.