Foreign elements in private wealth management

Private wealth management (PWM) has in recent years become a trendy concept quite familiar to almost everyone. Few high-net-worth individuals have assets located solely in their home countries or have no plans for their overseas assets. With the implementation of the Common Reporting Standard (CRS) aimed at facilitating the exchange of tax information among countries, foreign elements are now indispensable factors to be considered in PWM. As such, what are the most common foreign elements in PWM?

Foreign elements of the subject. PWM may cover many family members, and it is inevitable that some of them may have obtained or plan to take up permanent residency elsewhere, or have become citizens of other countries or settled there. So, it is necessary to focus on the changes in the tax status of such people due to changes of identities. Also, when drafting legal documents related to PWM, it is worth noting the influence
on validity of the agreement due to the laws of different jurisdictions.

In some situations, clients actively seek foreign residency when aiming to pursue PWM. Among the common circumstances are the following:

1. As most countries have restrictions on identity for specific assets or investments, some family members have to obtain nationality or permanent residency elsewhere in accordance with relevant regulations when allocating assets globally to overcome such restrictions;