IFAs should offer offshore solutions for the estimated £40bn in small companies’ bank accounts, says Scottish Equitable International.
The Dublin-based firm says offshore bonds can offer greater tax advantages, easier admin and more attractive returns than those offered by UK banks.
Figures from the British Bankers’ Association show that at the end of 2003, there were 4.5 million small business accounts with a total of around £40bn inv-ested in them. ScotEq International says IFAs will get access to this new market when advising companies on pensions and other benefits or when giving personal advice to controlling directors of small companies.
It has set up a marketing campaign for offshore funds, with adviser/client presentations and generic sales aids.
Head of marketing Ste-ven Whalley says the offshore market could provide a solution when the simplified pension regime starts in April 2006 for individuals who would previously have benefited from funded and unfunded unapproved retirement benefit schemes.
Whalley says: “We are helping IFAs determine the problem and solutions.”