To provide for the unique international wealth diversification needs of our ultra high net worth (UHNW) clients, FNB has created Global Wealth Solutions. Since the establishment of its branch in Guernsey during the course of last year, FNB is able to present a complete offshore value proposition to its clients. Global Wealth Solutions serves for you as an individual on all elements of moving money and investing offshore.
The continued volatility in both the local and international markets reinforces the fact that diversification is key in the creation and preservation of wealth. This especially speaks to individual business owners, as well as corporate executives.
With this in mind, a specialised cross-border unit within FNB Financial Advisory is available to provide guidance to you on the current regulatory environment, specifically relating to investing abroad. In particular, the team is able to assist clients who are looking to make use of their individual foreign investment allowance of R10 million with their tax clearance applications. It is a demanding and coveted market in which to operate, and hinges on delivering solutions of the highest calibre.
The Cross-Border Advisory team takes a holistic approach to guiding you on investing offshore, encompassing individuals and entities and the various mechanisms available to them. Thus showing that there are no limits, and we work hard to make this true for you. Getting this right starts with a deep understanding of the regulatory environment and how we can effectively solve within that framework.
Navigating the world of foreign investment necessitates a complete view of your needs. This means taking all the moving parts into consideration and seeing how they fit together - from individual allowances to institutional investments, as well as trusts and company holdings, where more complex regulatory issues come into play.
Considerations like the annual R1 million Single Discretionary Allowance and Foreign Investment Allowance of R10 million available to resident individuals over the age of 18, have become a useful and important tool for clients looking to diversify their asset base offshore, particularly in the wealth space. No tax clearance is required when using the Single Discretionary Allowance for investment purposes. This simplifies the process of transferring money offshore. Similarly, you can easily open a Global Account and save for international travel or unforeseen events requiring quick access to foreign funds.
Where moving funds offshore becomes more complicated is in the UHNW arena, where serious investors require our expertise in obtaining tax clearance certificates for amounts of R10 million in foreign allowance, or more.
The Cross-Border Advisory team within FNB Financial Advisory has been extremely effective here and, in May 2016, we achieved the milestone of obtaining tax clearances to the value of R1 billion for clients in this financial year - a significant achievement.
The tax clearance service allows us to add huge value to your portfolio, simultaneously eliminating the stress of navigating the online SARS portal for tax clearance yourself. The key to a successful application hinges on the source documentation and, together with our tax practitioner, we are able to put our insights to work for you, interpret input and ensure that the process runs smoothly and swiftly.
Flows offshore are picking up due to political and economic uncertainty around the rand and the state of the economy in general. The combination of individuals, companies and trusts looking to diversify more offshore is, however, dependent on navigating the regulatory framework and understanding the implied limits which the authorities work with when issuing tax clearances.
Forward-thinking families are increasingly pooling their individual allowances and building significant wealth bases offshore by making use of international trust structures. With more than 40 years of experience in Guernsey, FNB International Trustees (FNBIT) is seen as an industry leader in offshore trust and company administration and advisory services. We see our clients' wealth and legacy management as a journey to creating a life-long legacy. Using our insight into your wealth and legacy objectives, our experience and broader resources, we will design the most appropriate fiduciary solutions for you.
However, for UHNW clients seeking to take out large sums, FNB Financial Advisory can also offer you access to institutional investments. These are available to any South African resident, entity or individual and work by allowing institutions like Ashburton and FNB Securities to invest a percentage of assets under management offshore. By harnessing the ability of both FNB Securities and Ashburton to take out funds for you, we are able to truly match our claim of 'no limits' with action.
Coupled with an impressive track record and notable competency in this area, FNB Financial Advisory's Cross-Border Advisory team works to make offshore investing simpler for you by offering solutions that work. We also don't charge for our tax clearances, rather seeking to entrench relationships with you and further ensure there are 'no limits' to our service offering.
Contact us
For more information on our global wealth solutions offering and ways to help you diversify your wealth, speak to your Private Banker.
Private Wealth
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