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Ensuring you get the best advice at home and abroad.
Managing an investment
portfolio overseas is a major challenge for expats and getting professional
advice is crucial.
David Elms, chief
executive of IFA Promotion, suggests almost any lifestyle change, such as
moving abroad, should prompt the use of a financial adviser.
The wealth of information
on the internet helps many Britons abroad keep in touch and means some
financial decisions can be made without even lifting a telephone.
However, modern
technology also carries a danger of "information overload", warned
Chase de Vere adviser Julia Whittle.
"If they are not
aware of all the relevant issues, there is a danger they will end up with lots
of information but no knowledge," Ms Whittle said.
"Sometimes it's
important to speak with an adviser to make sure you have all the relevant
information, and also to give an objective viewpoint. It is often very
difficult to look at your own financial circumstances clearly."
Professional advice
offered by UK-based IFAs has a layer of protection because of their supervision
by the Financial Services Authority. "That means the advice the IFAs give
is heavily regulated in the first place," Mr Elms said. "Secondly, if
something does go wrong, you've got access to compensation schemes that the FSA
has got in place."
However, Britons who
decide to invest in their host country must recognise that there are limits on
what their UK adviser can do, while local laws may affect their role.
"Often we can only give guidance. We can't give investment advice on
products that are sited in that particular country," says Ms Whittle.
Having a local adviser
not only helps ensure you have information about investment opportunities, it
can also help steer you clear of tax pitfalls. "It makes sense to have an
IFA at home and abroad who understands the host country's rules and
regulations," Mr Elms said.
However, Patrick
Connolly, of John Scott and Partners, said many of his expats have no need for
a second adviser.
"If all they hold in
the country of residency is a house, we have the expertise to advise on basic
tax issues involved. But once it gets more complicated, for example issues such
as inheritance tax, or where their domestic investments are more extensive, a
local adviser will be needed"...
...As for finding an
adviser in your country of residence, your UK adviser might be a starting
point. But if this is not the case, Mr Connolly advises: "Talk to other
expats and work through the recommendation of someone who has been through the
process themselves."
Expats should check a
local adviser has domestic registration and qualification requirements, as well
as his expertise and experience, his fee structure, and whether he is tied to
certain products.
With separate advisers
overseeing different aspects of your portfolio, communication is also important
and often it will be up to the investor to ensure that this happens.
Based on an adapted article by
Carolyn Batt for the Expat Telegraph
(Filed: 22/02/2005)
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