Investing through international providers has grown in popularity over recent years as investors seek out the benefits of gross roll-up and the wider range of investment options that can be available.
When considering a recommendation for a lump sum investment, not only does the adviser have to select a suitable tax wrapper and help create a suitable portfolio but they must decide whether to invest through a UK provider or through a provider based in another jurisdiction. If the latter is right for the investor, there is another decision – which jurisdiction to use, and there is a whole world from which to choose.
Many investors will want to use providers based in countries they are familiar with and not in countries located on the far side of the world. In these days of transparency and information-sharing agreements, the jurisdiction should also be seen as reputable. Nations that maintain a high degree of confidentiality can often be seen as suspicious and this may deter investors. Think of those companies and individuals who invested through Panama and whose names were leaked to the press. I am not sure the publicity was welcomed.
For these reasons, many UK-resident investors and advisers will select providers based on the Isle of Man or in the Republic of Ireland. These countries are geographically close to the UK and have developed into global financial centres over a number of years. Their governments have passed legislation that makes them attractive destinations for investors from other countries, including the UK, and financial services has become a key part of their economies.
Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland.