Blacktower’s Nexus Fund Reaches £100m Milestone

On many occasions, lay investors have a tendency to confuse banking and property revenues as useful gauges of the overall strength of the investment economy. But, however healthy (or unhealthy) these two sectors appear, this should not be allowed to cloud the investment opportunity available to you via your expat financial services manager.

This is why we should not be overly concerned that returns in banking investments currently sit below historical averages – what this potentially marks is simply the residual impact of the 2008 financial crisis and the fact that banking and the wider investment economy have evolved with the advent of new and disruptive players in the finance sector.

For example, a new piece of research by Accenture showed that in 2005 there were 24,000 firms operating in the worldwide banking industry; today this stands at around 15,000. But this alone cannot be seen as a true reflection of the current climate because during the same period we have witnessed the dawn of 600 FinTech firms, 1,900 payment institutions, 700 new banks, and 400 subsidiaries of existing banks – there has also been some consolidation in the area.

Research by the Alzheimer’s Society suggests that two-thirds of people who have sought financial advice have a lasting power of attorney (LPA) in place, but this, potentially, means a significant proportion of Brits do not have the protection that LPA offers.

Unfortunately, there is a common misconception among many expats (highlighted in a survey of UK expats conducted by Old Mutual International in 2017) that a spouse, child or financial professional can automatically sign documents and manage the welfare and monetary matters of a person who loses mental capacity. This is not the case; your family members could be left vulnerable should you become unable to manage your affairs without having LPA in place.

Good expat financial advice would generally advocate local legal advice to help ascertain whether or not an existing LPA, i.e. one that was drawn up in the UK, is valid in your location of residence. Generally speaking, however, common law jurisdictions will recognise a British lasting power of attorney, but it is always worth checking.