6 Mar 2019
Many financial advisers have preconceived ideas when it comes to offshore bonds and the type of clients they may be suitable for. However, the changing landscape and new breed of bond solutions are opening up greater opportunities, helping build renewed interest and traction in this market.
The points below shatter some of these preconceptions, helping you see offshore bonds in a new light:
1. Offshore bonds can help a wide variety of client needs, not just top-end clients with sizeable lump sums to invest.
The landscape is shifting, and more clients could benefit from investing in offshore bonds. Here are some key examples:
Old Mutual International’s new Select Bond has an initial premium of just £20,000 and has been specifically designed to appeal to a wider customer base.
2. Greater understanding and simpler solutions are helping offshore bonds shake off their reputation as being complicated.
Offshore bonds can help simplify client holdings and provide simple ongoing administration:
3. Offshore bonds are more cost effective than ever before.
Increased transparency and market forces have had a positive impact on charging structures, and new breed solutions, like Old Mutual International’s Select Bond, takes this a step further; it has one simple competitive charging structure, no initial charge, no asset dealing charge, and no quarterly admin fee applied to the bond.
4. Offshore bonds enable clients to benefit from tax-efficiency and are not tax avoidance schemes.
In today’s climate, clients want more reassurance that they are investing in legitimate, well-regulated investment solutions. Offshore bonds are a far cry from the complex and aggressive offshore tax avoidance vehicles that can be used by companies and individuals to hide their money and not pay tax due.
Tax evasion is both illegal and morally wrong, and should not be confused with legitimate ways of making personal finances more tax-efficient. Offshore bonds do not avoid tax, but offer investors control and flexibility around when tax is paid.
With tougher sanctions in place if an adviser is found guilty of enabling a tax avoidance scheme, there is even more focus on advisers using legitimate tax-efficient schemes for their clients.
These are just some of the reasons why offshore bonds are becoming more attractive. For more information on whether offshore bonds could be right for your clients, please visit our website.