We get asked a lot about clients based overseas, and what advisers here in the UK can do in terms of providing advice.  

The question is normally, “Can I advise clients who aren’t in the UK?”

And the short answer is that from a regulatory perspective, you can. But should you? Well, the answer depends on certain things. Let’s explore.

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Regulatory considerations

Before we get into the ‘should you,’ let us cover the ‘could you’.  

There is no restriction on you, as an adviser, providing advice to someone who is a tax resident overseas and who does not therefore live in the UK. You do have to make sure you give this advice to the individual while they are in the UK.  

This means you cannot provide the advice at a distance. If you gave advice while they were present elsewhere, you would be doing so within the framework of that jurisdiction (meaning you are doing so when not authorised or regulated by that country).  

So as long as the client can come to the UK, you can provide advice while they are here, even if they live abroad.  

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What is the client looking to do?

Next thing is the ‘what ‘of advice. This is important as this is where competency will come in.  

For clients who have UK pensions that need attention or those with QROPs/QNUPs you may be able to provide advice such as fund/plan switching without having to worry about foreign tax implications. Moving funds to a QROPs to the country where the client now lives is a common scenario where you might provide advice.  

For clients who are accessing pensions, however, much more caution is needed. Concepts such as tax-free cash are not recognised in other countries (France as an example). In this scenario you may want to only deal with the structure of the pension, leaving access as something to be determined by the client or an adviser in the home country.

Investment accounts are also fraught with issue. Non-UK tax residents cannot contribute to ISAs and while they can invest in UK products (GIAs/Bonds) it is too difficult in your role to account for the tax in their home country.  

Ultimately anyone investing or taking out should be taking advice in their jurisdiction.

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What does your PI cover say?

Even if you wish to take on the advice, what does your PI cover say? There can be additional exposure that your cover will not permit and even a single piece of advice in this area could have future impacts on the premiums you pay.  

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Conclusion

There you have it. Can a UK financial adviser help a client outside the UK? With careful consideration of regulatory requirements, the area for attention, and your own PI cover the answer is likely to be yes.  

If you’re in any doubt, get in touch! Our team of Verve experts is well-placed to answer questions for firms and independent financial advisers. Explore more FAQs in our news section, and don’t forget to connect with us on Linkedin - we share regular insights there too.

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