Picture the scene. Mrs Smith, a longstanding client, has just announced she’s moving to Japan.

What do you do? Wish her well and wave sayonara, or continue to manage her investments?

I’m sure most of you will be wondering why on earth you would give up a successful relationship – but have you considered the implications of acting for someone residing outside the UK?

Advising in Europe

Since we left the EU, the ability for UK-based firms to advise clients who live in other countries has essentially been removed.

However, if your client is an EEA/EU resident, there are a couple of exemptions you may be able to utilise to continue to act on their behalf:

1. UK soil exemption: Your client may live abroad but if your advice and the regulated activity takes place exclusively during visits to the UK, the exemption is permitted. You need to keep clear records of the client’s location during any contact, as even an email or phone call made while the client was outside the UK could be considered cross-border activity.
2. Reverse solicitation: A less common and, in some cases, riskier option is to cite reverse solicitation, which, when used correctly, it is valid under EU and UK law. British firms have every right to provide services to EU clients that act exclusively on their own initiative to seek financial advice. However, this exemption has limitations and seeking legal advice is recommended before proceeding on this basis.

An option for clients moving overseas temporarily is to consider giving a trusted person living in the UK power of attorney. The donor decides who to appoint and when it can be used – for example, only for the provision of financial management when they are living or working overseas.

The regulatory position

While the FCA may regulate the product you want to provide the client, if they live outside the UK, they are not within its jurisdiction in relation to your advice.

Therefore, you need to consider if the service can be justified, in terms of the cost to your firm and the client, and the effort required to comply with local legislation.

The problem is that the ‘characteristic performance’ of the service determines where the activity is seen to be undertaken. For discretionary investment management firms, it is slightly easier, as decisions are made by you in the UK, but advisers act on the instructions of the client and, for regulatory purposes, these activities are determined by the client’s location at the time the advice is given.

As a general rule, you cannot market or solicit for business outside the UK unless:

• You have written evidence of exemption from the host state
• You have been granted the relevant local authorisation

Practical considerations

You may be thinking the need to gain overseas authorisations is a mere technicality, but are you prepared to take the risk? Would you have PI cover if a complaint from an expat was to arise?

Although the chances of being caught may be low for one-off or irregular work, the FCA would hold a dim view of firms knowingly operating overseas in breach of local regulations.

There are other aspects to consider, too. For example, if you are providing an ongoing service, can you meet your Consumer Duty obligations? What would happen if you needed to make an urgent change and the client couldn’t come back to Britain? You really need to consider the outcomes for non-UK clients and whether they will receive fair value when judged against your wider target market.

Do your research

If you find yourself in the unenviable position of having to decide whether to continue acting for an emigrating client, it might be worth seeking the opinion of a solicitor or the financial regulator in the country concerned.

They will be able to confirm if there are local exemptions or if authorisation is needed. You also have to track down providers willing to facilitate an investment for clients without a UK base.

If you determine advice has been provided outside the UK, without the local regulatory permissions, you may need to consider making a declaration to the FCA. You may also need to check if your PI insurer will cover the transaction.

For precise details about serving clients overseas, it is always worth consulting the FCA’s handbook or seeking legal advice.

Vicky Pearce is a director at B-Compliant 

SEETHING neighbours have hit out against a homeowner for erecting a skyscraper-style extension in their area.

Locals slammed builder Danny Dare after Bolton council approved the proposal for the Horwich gaff – with one dubbing it a “monstrosity”.

5

5

Advertisement

5

But builder Danny laughed off the complaints, claiming that concerns from residents over an invasion of their privacy are absurd.

He told The Sun: “I’m a builder myself and build dormers all the time.

“I’ve never had any problems until I wanted to build one on my home.

“But at the end of day, the council have approved it. So I don’t see what the problem is.

“I can’t understand what people are complaining about.

“They say it’s a privacy issue and it’ll mean we can see through their windows. But that’s not the case.”

Another resident defended Danny’s extension – arguing the add-on will make little difference to privacy concerns.

One woman said: “I know it’s upset some of my neighbours but I’ve got no objections to it at all.

“I can’t see there’s any loss of privacy because the top windows of the house already overlook our gardens anyway.

“And, as far I’m concerned, the house is some distance away from my home.”

Despite being shockingly compared to a hotel, Danny’s dormer is only 9.4m wide and will give his two-storey property just one other level.

However, Walter Gent, 64, who lives in a nearby bungalow, said he objected to the plans due to four criteria: the loss of privacy, it not keeping with the character of the road, over-development and the impact on parking.

He said: “I feel let down by Bolton Council.

“Initially, the plans were turned down by Horwich Council but they then passed into to Bolton, who took a complete different view.

“They approved it because other dormers had been built in the area – but how can they compare it to ones built three streets away.

“I’ve already had to put up a 14ft high hedge in my back garden, but the dormer will mean less privacy because it will overlook my house and bedroom.

“It’ll feel like were living next to a hotel or a skyscraper.”

Councillor Ryan Bamforth echoed that sentiment, and hit out against the council for greenlighting the extension.

He said: “Another concerning aspect was the home-owner’s decision to start building and then seek retrospective planning permission.

“I was extremely upset it was granted.

“If councillors roll over to builders and developers every time there will be constant development because they will know retrospective applications will be approved.

“They should have the moral fibre to stand up for what is right and wrong.”

5

Advertisement

5

When used wisely, credit cards can be very useful financial tools. This includes knowing what to use your credit card for and when to just use your cash. While credit cards offer convenience and the potential for rewards, they also come with risks, including high interest rates and the potential for debt accumulation. So, deciding whether to put those big purchases like rent, a new car, or even mortgage payments you should explore whether this is always the smartest option. 

Is it a good idea to use your credit card for large purchases?

Paying your larger purchases on a credit card may seem like a safe idea but this is often how people fall into debt they can’t come back from. Paying for things like rent, cars, mortgage payments – recurring expenses means that each month you have to pay this back in full or watch as it tips over and builds up each month. 

Often, landlords will charge extra fees for credit card payments or won’t accept them at all. Also, with higher interest rates this could make your rent higher overall.

When buying a car or financing a car you could earn points by putting these large purchases on your credit card, however many car dealerships limit how much you can charge or you could pay a higher interest rate. If you need help, then traditional car loans often come with lower rates. 

Mortgage lenders may charge processing fees for credit card payments, and, given the size of mortgage payments, failing to pay off the balance could lead to high interest charges. Moreover, many mortgage companies do not even accept credit card payments, making this option impractical for most.

When using your credit card for any of these large purchases you have a higher chance of building debt and having to pay credit card late payment fees, high interest rates and additional payments. 

What should a credit card be used for?

Credit cards can be useful and can help you manage your finances but making sure you know when not to use it will be equally helpful to maximise the benefits. Below is a list of uses your credit card should be used for.

You can find various credit cards that offer rewards points or cashback for purchases. With this, using your card for planned and manageable expenses, like groceries or petrol can help you accumulate these benefits without stretching yourself too thin. 

Most people use their credit card in order to build a good credit score and report as this will help when you are ready to get a mortgage or other loans. When you use your credit card effectively and pay off your balance on time, in full each month you show lenders you’re a responsible borrower. 

While it is not ideal to rely on your credit card for emergencies and it would be best to have a personal savings account for this, you can use your credit card if needed. 

The Negatives of using a credit card for big purchases

• Building up debt: Large purchases can quickly max out your credit limit as well as lead to a build up of debt. They will be more challenging to pay off in full every month and you are more likely to get yourself into debt you can’t pay off.
• High interest rates: If the above does happen then your debt will also have higher interest rates than other forms of borrowing such as loans. 
• Potential for overspending: People can often get carried away with a credit card as they see it as unlimited funds. This can be dangerous very quickly as you can start spending money you can’t pay back. 

If you need help with how to pay off credit card debt then contact your bank and use these guides. 

When to avoid using your credit card?

• When you are paying large, recurring expenses
• When you can’t pay off the full balance in time
• When there are additional fees

By following this guide about using your credit card you will be able to use the financial tool effectively. You can make sure you can build up a good credit score and avoid large interest fees and debt accumulation.

OVER 50 Primark locations across the UK are set to get a new service that will help shoppers dodge queues this festive season.

The budget fashion brand is rolling out click and collect to 54 new stores before the end of the year.

The service, which allows customers to order clothes online and pick them up in-store, was first introduced in November 2022.

There is no fee to use click and collect but you must spend a minimum of £10.

It means shoppers can avoid the disappointment of arriving in stores and not being able to find the product they were looking for.

Fashion-lovers can also skip the queues and choose the day you would like to collect their items.

Unlike traditional online shopping, you must come into a Primark store to pick up your items as they will not be delivered to your home.

It is currently only available across 57 of Primark’s 191 stores in the UK.

However, once the service is fully rolled out before the end of the year some 111 sites will have the feature.

The exact date that customers will be able to use the new click and collect service in stores has not yet been confirmed.

Primark has also increased the number of products customers can buy via click-and-collect to include men’s and homeware products.

This is in addition to women’s and children’s clothing which was first introduced as part of a trial.

Click and collect is not the only new feature which has been spotted in Primark stores.

The budget fashion and beauty brand has also introduced self-scanners at a handful of its locations.

Around 20 Primark stores have the feature which lets shoppers scan and bag items themselves.

However, the service is kept separate from the main tills.

It is also protected by a security door which only opens when you scan a receipt.

The fashion retailer has also set up cafes within ts stores, including a Shrek-themed diner.

A number of the retailer’s stores now have a Shrek Far Far Away Cafe themed on the green ogre.

Locations across Manchester, Cardiff, Birmingham, Glasgow and Edinburgh now feature the fairytale-themed food and drink spot.

However, if you are keen to check it out you will have to be quick because the collaboration is set to end this November.

How does Primark’s click and collect service work?

The service works very similar to online shopping, but instead of getting the items dropped off at your home, you pick them up in-store.

Primark has over 3,000 products available to shop via its website, including menswear and homeware.

To place an order select a click and collect store, choose the size of your items to add to your bag and head to the checkout.

You can also select a date you would like to visit the store to pick the item up.

Click and collect can be cheaper than a home delivery as many retailers do not charge a fee for the service.

It is always worth looking online to see if your retailer has the option, but make it is at a store which is close to you.

Despite a drop in assets under advice in its UK business, Kingswood’s UK and Ireland division reported a £200m uptick in the first half of 2024 thanks to the completion of its BasePlan acquisition and “positive market movements”.

In its unaudited interim financial results for the half year ended 30 June 2024, the group said it had experienced AUA outflows in its UK business following the departure of some wealth advisers.

A “swift, diligent recruitment process” has replenished its wealth advisory team, it said.

This includes the addition of a fourth regional manager to support growth across the London and Southeast region.

Kingswood completed the acquisition of Dublin-based advice firm BasePlan in February this year. The acquisition added €130m (£108m) AUA to the group.

UK and Ireland AUA at the period end stood at £6bn and assets under management were £3.7bn. Meanwhile, US AUA was £3.2bn.

Group revenue from continuing operations in the period was £40.6m, an increase of 14% on the restated prior-year figure of £35.6m.

UK&I revenue increased by £300,000 to £23.4m, or 1%, compared to the restated period last year, of which 81% is recurring in nature.

US revenue increased by £4.8m to £17.2m, a 38% rise compared to the restated period last year, driven by growth in authorised representatives.

Kingswood said further progress had been made across the UK&I in “driving organic growth”.

This included onboarding six new IFA firms to IBOSS, in line with 2023 levels over the comparable period.

The group also flagged three new appointments made to the executive team in H1.

In the period, it brought in Bryan Parkinson as managing director of wealth planning, Vinoy Nursiah as chief financial officer and Peter Coleman as chief executive.

“The combination of the new joiners with the incumbents of Rachel Bailey, chief people officer, Paul Hammick, chief risk officer and Lucy Whitehead, chief commercial officer, has already demonstrated its effectiveness and capability,” the report said.

The executive team has delivered in-person presentations of the next strategic phase at all UK locations and overseen the delivery of a major project to enhance regulatory performance and efficiency.

It has also run the design and implementation of a new service operating model to improve client and adviser experience and created five fundamental focus areas to align efforts across the group.

Additionally a major finance transformation project commenced in July and is on track to complete as scheduled in Q4.

Coleman said he is “particularly pleased” with the firm’s strong revenue growth and in particular the growth in recurring revenues.

This, he said, demonstrates that the group’s acquisitions are “beginning to mature”.

“Quite rightly our focus is on providing a first-class experience to all of our clients, with the use of our excellent advice community, technology and range of award investment propositions,” he added.

“In particular, I am pleased with the ongoing development of our IBOSS range of model portfolios and our in-house DFM, both of which continue to flourish within the group.

“Our operating profit continues to grow, enabling our continued investment in people, propositions and processes all focused on delivering a market-leading proposition for our clients.

“In UK&I we continue to be acquisitive with the addition of BasePlan, and we will continue to identify opportunities that enhance our growing business in this market.

“In the US, we continue to expand with the momentum of adviser recruitment and banking growing exponentially.”