Number 19

ISSUE 19

IN REVIEW: MUMBAI

ON THE HUNT FOR TOP 10 INFLUENCERS RESPONSE TO COVID-19 PCD GOES DIGITAL

David Bell, founding director.

05 March in London

Welcome to Number 19 WELCOME TO THE LATEST ISSUE OF

for sponsors and members as we enter

PCD’S DIGITAL MAGAZINE.

this new environment.

You might notice something different

PCD Club hosted events in 21 global

about the content of this issue. Gone

cities in 2019. Our agenda for 2020 in

are the pictures of me in a sunhat in

January was equally international. We

Cayman or hobnobbing in Singapore

have had to respond to the COVID crisis

or Cape Town. The COVID-19 crisis has sent a shockwave through the global economy and has hit certain sectors particularly hard. The owners of hospitality businesses face financial ruin as they are unable to

by rescheduling our

Our mission remains clear and we will relentlessly pursue the creation of value for sponsors and members as we enter this new environment.

carefully constructed agenda, to push events to September or later. Following the challenge of making new arrangements for events, we have given serious thought to how we continue to create

utilise the staff and

value for our members

assets that they have

and sponsors.

painstakingly built over the years.

The motto of PCD is #newcontacts Fortunately, this is not the case for

#newideas #newbusiness. In an

PCD Club, as our inherent value is in

environment where we can’t deliver

networking, knowledge sharing and

live events, we can still create value by

business development for leading

combining professionals online, and we

professional advisors in the private

have spent the last two months coming

wealth sector; those who need our

up with new models and formats that

services now more than ever. Our

we will set out in this magazine. The

mission remains clear and we will

private wealth industry has been slow

relentlessly pursue the creation of value

to adopt technology solutions that are 3

W E L CO M E F R O M DAV I D B E L L

available. Usually, professionals enjoy

In this brave new world, PCD can be

the opportunity to travel and meet

your Sherpa, friend and guide.

industry contacts in person; it is the best way to build trust and rapport.

We are testing all the best platforms

But if that route is not available, we need to establish new behaviours.

The technology is there to be used; it is simply a matter of habit,

and methods to bring

PCD is at the forefront of sharing ideas and best practice for the benefit of the whole community.

orientation and using

people together online.

We are launching interesting content programs to keep members engaged and to provide a sophisticated way for sponsors to

formats that are effective. The more you

communicate their message to a

use webinar and video tools, the more

global audience. PCD is at the forefront

relaxed and prepared you become.

of sharing ideas and best practice for

Finding solutions via technology

the benefit of the whole community.

to replace travel carries numerous

We hope you will stick with us on the

benefits; it will prove more time and

journey ahead.

cost efficient, lower global emissions and extend the opportunity to spend

The future is digital and the time is

more time with family and friends.

now.

We would love to hear from you: Email members@pcd.club Book a call with me directly by clicking here (https://calendly.com/davidbell/)

4

PCD responds to COVID-19 2020 HAS COMMENCED WITH

business travel and communications are

UNPRECEDENTED MARKET TURMOIL

restricted, we are seeking to create digital

AND ECONOMIC DISRUPTION CAUSED

channels which are valuable for our

BY THE COVID-19 VIRUS. MANY

members and sponsors.

SECTORS OF THE GLOBAL ECONOMY ARE BEING HIT BY THIS CRISIS,

Whilst our events program is postponed,

INCLUDING EVENTS BUSINESSES SUCH

we are working closely with our members

AS PCD CLUB.

to facilitate connections. We continue to work to deliver new contacts, new ideas

We are inviting all members to join us for

and new business - just via a different

an interactive webinar where we will set

medium.

out in detail how we are responding to this challenge. The first webinar on this

We are anticipating a minimum of 6

topic will be on Friday 3 April at 12:00

months' disruption to our events program

BST London time.

(our revised event calendar for later this year is available here). Since the first evidence of the scale of the crisis, we have been exploring new ways to connect

CLICK HERE TO JOIN US FRIDAY 3 APRIL

professionals in an environment where international travel and even local events are not possible to execute. Members will be able to use the dinner allocation

It will be recorded and replayed on our

in their packages without penalty by

website if you are unable to attend.

extending their membership term by as long as necessary based on the latest information.

Given the global nature of our calendar, which connects the top private wealth professionals with their counterparts

We are offering our members a powerful

around the world, we have built a vast

online marketing package until our live

network. In the current climate, where

events can resume.

5

P C D R E S P O N D S TO CO V I D - 1 9

3) Access to thewealthnet &

Digital Offer for Members

e-privateclient.

PAM Insight will offer all existing PCD members (excluding existing

1) Membership Directory &

subscribers) three months' free access

Referral Requests.

to thewealthnet (click here) and

Since face-to-face meetings have

e-privateclient (click here) (whichever

become more challenging and HNW

you choose), together with either 20%

client needs continue to evolve, we

off any new subscription passing the

are seeing more requests from our

full saving onto our members. Details

contacts and members for referral

on how to access this important

recommendations of service providers

industry news source will be sent to

in certain locations. We are channeling

members shortly.

these opportunities consulting our member directory; please check

4) International Pods.

that your member profile is accurate

Members of PCD will be able to

and complete so we can find you

join a Pod focused on a specific

or consider your services should

geographic market. These Pods will

opportunities come through our

meet once a month online on a video

network.

conference platform, where we will invite two speakers to present some

2) Private LinkedIn Group for

ideas to those assembled and discuss

Members.

afterwards in a Q&A. One speaker will

We have created a private group

come from the region itself and one

exclusively for PCD members to share

from offshore. We are interested to get

referral opportunities, commercial

feedback from potential sponsors and

ideas and industry knowledge. This

members on which regions they are

will become an increasingly important

interested in, but we plan to launch the

source of leads and market intelligence

following regions initially:

as conditions settle into a new normal and clients start to become active

z Middle East.

again. To request to join, click here.

z Greater China, including Hong Kong & Singapore. z US & Canada. z LATAM. z East, West, South Africa.

6

P C D R E S P O N D S TO CO V I D - 1 9

5) UK Pods.

We have set up a group for our

Reflecting the fact that we also have

NextGen community (typically

a large number of members in the

with less than 5 years' professional

UK, where we are based, we will be

experience). This group will share best

offering a Webinar Pod program for

practice for working at home, online

UK members and interested parties

training opportunities and business

offshore covering a range of topics:

development tips to keep their skills sharp and engaged. To request to

z Estate Planning

join the NextGen group, click here or

z Philanthropy & Social Impact

forward to colleagues.

Investing

Social Media & Digital Marketing Services

z HNW Family Law & Divorce z Entrepreneurs & Exit Planning z UK Real Estate z Regionally focused sessions on Bristol, Manchester, Leeds and Edinburgh

1) Social Media Optimisation.

In the current environment, digital

6) Digital Magazine.

marketing channels for clients and

We have been publishing monthly

contacts becomes more vital to keep

magazines for our members, which

your business moving forward. LinkedIn

have mainly previewed our live events

is the most popular B2B marketing

(click here). We are now able to

channel for professional contacts,

turn over more of this magazine to

which is also used by clients who are

thematic issues which highlight the

business owners & entrepreneurs. PCD

skills, competency and trends that

can help you optimise your own social

our members are observing in this

media profile and guide you on ways to

new environment. Members will have

promote yourself online.

the opportunity to contribute to the magazine and benefit from learning

2) Webinar Design & Execution.

new ideas from others.

PCD has spent the last few months working out how to design, produce

7) Private LinkedIn Group for

and broadcast content via an online

NextGen Members.

webinar platform. We are able to help

Managing younger staff in these

members create interactive online

new conditions is a huge challenge.

7

P C D R E S P O N D S TO CO V I D - 1 9

content for their clients and contacts.

wealth sector. We have launched a

Our specialist knowledge and tools that

questionnaire which will go to all

we have developed can help you look

our contacts, which we will report

more professional and forward-thinking

back to members. This will help you

online.

understand and implement the best ideas into your business. Some regions

3) Bespoke Campaign on Social

are ahead of the curve on COVID-19 so

Platforms.

the local offices have adopted practices

PCD is able to collaborate with

that could be useful to others. It will

member firms to design and deliver

include ideas on how teams function

impactful campaigns on social

best when working remotely and how

platforms to drive your business

client interaction is dealt with in an

forward. We can work with your

efficient manner.

marketing teams to create content and raise your profile when you are unable

Please find a link to our industry wide

to travel. Basic campaigns can be done

questionnaire here.

without additional cost for members, but bespoke content and features could be arranged under an agreed budget.

4) Online Courses.

We are currently developing a Social Selling course that will be delivered online, qualify for CPD and help you understand and capitalise on the opportunities available in digital marketing. This course will be available to PCD members at a discounted rate, which will be announced shortly.

COVID Knowledge Hub for BCP & WFH PCD has a substantial global reach that can be used to gather best practices on business operations in the private 8

Manchester Webinar: Relocation and Mobility in the North West ALL WAS NOT LOST BY POSTPONING

Economic Development who joined us

THE MANCHESTER NETWORKING

to talk through the issues raised in two

DINNER ON THE 19TH MARCH AS

case studies around relocation.

WE INSTEAD HOSTED A GREAT PANEL SESSION AS OUR VERY FIRST

The results of polls during the webinar

WEBINAR.

showed that 63% of the audience had directly dealt with clients moving to

With thanks to our panelists:

the UK in the last 6-12 months - most

Craig Brown, Managing Director of

of those moving here were primarily

IQ-EQ (Isle of Man), Robert Wilson, Tax

coming for business reasons (48%) with

Manager at ETC Tax and Nick Preskey

education coming in second (30%).

from the Isle of Man Department for

WATCH THE WEBINAR

9

PCD Club Webinars: How To How do I register? Go to our website and register as you would normally do for an event. Any issues? Email tickets@pcd.club

What next? To run our webinars we are using the BigMarker platform.

You will receive an email from BigMarker with the login details you will need to enter the webinar.

What do I need? The latest version of Chrome, Firefox, Safari, Edge, Internet Explorer 11 (a plug-in is required), or Opera.

A stable internet connection: This can be challenging when you are working from home. We set up the webinar to use the lowest possible bandwidth but you may still find that your connection pauses or some of the video clips will not play.

This should be temporary (particularly for a WiFi connection) and should selfrectify. After the webinar is finished we will be publishing the video on our website so you can always catch up on anything you may have missed.

What can I expect? Inside the webinar room you will have access to a chat functionality which you can use to write comments that the group can see. You can also message presenters directly and submit questions for any Q&A sessions. If you are experiencing any technical issues inside the webinar room do flag it to the presenters via the chat function and we will try to resolve them as soon as we can.

During the webinar you may be asked to answer some questions - polls will pop up. You do not have to answer if you would prefer not to - the message will drop from your screen when the poll closes. All poll answers are completely anonymous.

10

P C D W E B I N A R S : H O W TO

Troubleshooting:

.

I cannot access BigMarker on my work laptop This will be due to firewall restrictions put in place by your company. Do test this in advance if you are able to. If have a network firewall enabled, you may see a black video screen or a “Connection Can’t Be Established” message. To update your firewall settings you will need to contact your IT department and send through the link provided by BigMarker here. Alternatively you can use your own personal computer, tablet or phone to access the BigMarker platform.

There is a dial-in code so you can listen to the webinar over the phone if problems persist.

When can I log in?

15 minutes before the webinar starts a waiting room will open so you can login slightly early if desired. You will enter the webinar as soon as it starts. In the waiting room there may be some video clips played so do turn your sound on/off as you wish.

Further assistance: If you have any queries or need any assistance please email us at tickets@pcd.club.

CLICK HERE TO JOIN US ON FRIDAY 3 APRIL

11

MEET OUR MEMBERS

Meet Our Members: Nicola Saccardo What do you love most about your role?

The international nature of the cases that I follow is the aspect that I like more about my profession. Living and working in an international city like London allows me to deal with very interesting cross-border issues regarding the private clients and the wealth management area.

Why did you join PCD? The main reason why I decided to join PCD is to network with international What do you do for Maisto e Associati?

professionals operating in the private

I am a partner at Maisto e Associati, a

client and the wealth management

leading independent Italian law firm

industry.

specialized in Italian tax law, and I head My top tip for networking is...

the London office of the Firm.

Share my experience, my expertise and My practice focuses on private clients

brainstorm with peers!

and private wealth. I am retained by Italian and international high-net-worth individuals, trusts, financial institutions and family offices to advise them on the Italian tax law in relation to trusts, estate planning, generational transfer of wealth, succession planning, structuring

Read Article Online

the purchase of Italian assets and relocations to Italy.

12

PCD Club Top 10 Influencers PCD CLUB IS ON THE HUNT FOR THE

traditional client base of the industry

TOP 10 INFLUENCERS ON LINKEDIN IN

is shifting towards younger, tech-savvy

THE PRIVATE WEALTH SECTOR ON A

customers, who want to see their

GLOBAL BASIS.

advisors active online. By increasing visibility with clients online and sharing

The wealth management industry

timely & relevant information through

has typically been slow in its adoption

the news feeds, they are able to build

of new trends in online marketing.

stronger relationships and attract new

However, a growing number of

ones.

professional advisors with a substantial

41% of millionaires use LinkedIn

following online are using social media platforms to drive their business forward.

A 2018 study shows that 41% of The private wealth sector is seen as

millionaires use LinkedIn ranking

providing a very private and discreet

second only to facebook.

service for high net worth clients. The

13

P C D TO P 1 0 I N F L U E N C E R S

A crucial aspect of marketing in this industry is not pitching directly to the end customer, but via an intermediary who are gatekeepers, which these clients will rely on. LinkedIn is the B2B networking platform and has all the tools to develop new contacts and share the latest information with contacts to drive new introductions.

LinkedIn is responsible for 80% of the B2B leads from social media.

Not only does LinkedIn have a high visitor-to-lead conversion rate, but this network also attracts 80% of all B2B social media leads. Twitter ranks second, drawing 12.73% of all social media leads, while the percentage of social media leads coming from Facebook is 6.73%.

We are seeking nominations... of professional advisors to high net worth clients in a range of sectors: tax; law; accounting; banking; wealth management; property; fiduciary; finance; insurance.

14

The top 10 will be judged on their Linkedin connection / follower numbers and the impact that social media presence has generated for their business. We will publish our findings this summer, including in-depth interviews with our featured professionals discussing: z Why they started building a LinkedIn following; z What are their tips for success on LinkedIn; z What tangible business results has it delivered; z What is the future of marketing on LinkedIn.

In order to nominate a contact, email members@pcd.club with a recommendation.

Professionals are signing up to join LinkedIn at a rate of 2 new users a second.

15

PCD Club International Pods THE OUTBREAK OF COVID-19

Q&A. One speaker will come from the

REMINDS US ALL OF HOW RELIANT

region itself and one from offshore.

PRIVATE WEALTH PROFESSIONALS ARE ON INTERNATIONAL TRAVEL

We are interested to get feedback from

AND EVENTS FOR OUR BUSINESS

members on which regions they are

DEVELOPMENT PLANS. IT IS HARD

interested in, but we plan to launch the

TO BEAT THE IMPACT OF MEETING

following regions initially:

HIGH QUALITY PEOPLE IN THE RIGHT ENVIRONMENT TO HELP ESTABLISH

z Middle East.

TRUST AND RAPPORT. PCD EVENTS

z Greater China, including Hong Kong

HAVE RELIED ON THE INTERNATIONAL

& Singapore.

MIX OF OUR DELEGATE LISTS TO DRIVE

z US & Canada.

SPONSORSHIP AND MEMBERSHIP

z LATAM.

OVER MANY YEARS.

z East, West, South Africa.

During the next 3 to 6 months, many

The video conference calls will be

companies have imposed travel bans,

attended by approved members of PCD

which will severely limit the ability of

and a guest list will be circulated to all

professionals to build and maintain

participants so it is known who is on the

their networks. As a response, PCD

call and to create an opportunity to open

is developing a new concept of

a dialogue with them to follow up. The

membership “Pods”.

call may have 30-40 regular participants so will provide a trusted forum for

Members of PCD will be able to join a

intelligent discussion from your desk or

Pod focused on a specific geographic

boardroom.

market. These Pods will meet once a month online on a video conference

Once the travel problems ease, our

platform, where we will invite two

members will have spent the time in the

speakers to present some ideas to those

office in a useful manner and have new

assembled and discuss afterwards in a

contacts to meet in their target region.

16

MEET THE TEAM

Meet the Team: Sophie Bell ideas and looking at how to improve what we do. The thing I enjoy the most is working with our team to deliver the best experience possible to our sponsors, members and guests.

Best vacation you’ve been on? I’m going to cheat slightly and say a trip to New York via Bermuda. It was a lovely contrast to go from one to the other as they couldn’t be more different! Top tip for New York if you go with younger kids - a visit to the Children’s Museum of Art. Where are you from? I grew up in Radlett - a village in Hertfordshire just

If you could do another job for just

down the road from Elstree Studios

one day, what would it be? Before PCD

and the Arsenal training ground!

Club I worked as a forensic accountant at the Charity Commission where I

What’s your role at PCD Club and

completed an introductory course in

where are you based? My role is

Foot Surveillance (AKA ‘spying’). It was

Director of Finance and IT so my main

really challenging and certainly got the

responsibility is to keep things going as

adrenaline pumping - I would have to

unnoticed as possible! I am based in St

say Spy for a day!

Albans where I live with David and our Motto or personal mantra? “It’s all

two children.

good!” is particularly useful on the What aspect of your role do you enjoy

busiest of days and will be handy over

the most? There is never a dull moment

the coming months as we learn to

at PCD HQ - we are always trying new

juggle home schooling and work!

17

M A K E YO U R L I F E E A S I E R

Make your Life Easier But team members - as recipients of those directives – are not called on to think for themselves.

They have no sense of ownership or responsibility and are not being challenged in their work. It’s not very satisfying. In fact, it’s rather dull.

But change is afoot as businesses increasingly look to instil a coaching culture designed to create a more dynamic working environment.

To get there often requires a flexible Your future success, as a leader, is

and patient mindset and an investment

largely driven by the quality and

in time and energy. But time and time

engagement of the teams you run.

again it proves to be a very worthwhile investment.

How will you best deploy the team’s collective strengths, motivate them

Your objective is for your team to have

to push for success and create the

clear goals, well-defined mandates and

environment for them to flourish?

flexibility in how they get there. They will be told ‘what’ they should achieve

Historically leaders lead from the front.

not ‘how’ to achieve it. You trust them

All knowing and wise, they tell their

to do the right thing. And just watch

people what to do. They have depth of

their sense of worth and ...

knowledge and experience and make better decisions than their juniors. It is

Read Full Article

expected of them and feels right - to them at least.

18

CHINA NOW: EPISODE 2

DURING THE COURSE OF 2019, PCD CLUB PRODUCED A NEW 3 PART DOCUMENTARY AIMED TO PROVIDE INSIGHT ON CHINA FROM LEADING PROFESSIONAL ADVISORS IN THE PRIVATE WEALTH SECTOR. IN THE SECOND EPISODE, WE EXPLORE CHINESE APPETITE FOR INVESTMENT AND RESIDENCY IN THE UK, WITH CONTRIBUTIONS FROM:

Charles Wang, Partner & Head of China Desk at Rosenblatt LLP in London James Heathcote, Associate Director at Lancaster Knox in London Ian Gatt QC, Partner at Stewarts in London James Price, Partner at Stewarts in London Despite the impact of COVID-19 on Chinese society, we believe the fundamentals of the country’s economy remain strong. The observations our contributors made last year are just as relevant at the moment and as the economy reverts to full steam ahead. The challenges of succession, governance and diversification of investments remain prevalent in the many HNW and UHNW families building their wealth in China today.

WATCH EPISODE 2 HERE THE EMERGENCE OF CHINA 19

In Review: Mumbai WEDNESDAY 19 FEBRUARY

Panel 1: Relocation & Mobility for

ST REGIS HOTEL, MUMBAI

HNW Indian families.

PCD RETURNED TO MUMBAI FOR

Kuntal Dave, Owner of

ITS SECOND ANNUAL NETWORKING

Nanubhai Desai & Co,

DINNER AT THE MAJESTIC, ST

opened the first panel

REGIS HOTEL. THE EVENT OPENED

with a summary of

WITH TWO FASCINATING PANEL

some of the key statistics and trends in

DISCUSSIONS ON TWO KEY TOPICS OF

international migration. He noted that

RELOCATION & MOBILITY FOR HNW

in 2019, the UN found that India had

INDIAN FAMILIES AND INTERNATIONAL

272 Million people resident outside their

ESTATE PLANNING. THE DISCUSSION

home country (out of a global population

WAS ABLY CHAIRED BY KUNTAL DAVE,

of 7.7 Billion) which is a substantial

OWNER OF NANUBHAI DESAI & CO,

number. Of all the destination countries,

WHO ARE THE KNOWLEDGE PARTNER

the US is the number one designation for

TO PCD CLUB FOR THIS EVENT.

migrants, with other countries attracting smaller numbers.

David Bell interviews Kuntal Dave regarding upcoming panel discussions 20

IN REVIEW: MUMBAI

Cyprus introduced the Cyprus

families. More than a passport which

Investment Program which allows

eases travel restrictions, such as St Kitts

individuals to get Cypriot citizenship,

& Nevis options, the primary benefit of

but doesn’t feature in the Top 10

the Grenada passport is the ability to

destinations for migrants. Its attraction

reside in the US via an E2 Visa. Since

is growing among HNW investors,

the closure of the popular EB5 Visa

entrepreneurs and families but total

scheme, this route has become even

numbers able to access the program

more valuable to investors.

are capped at 700, so will always remain a niche option in terms of

Mohammed Asaria,

global mobility.

Vice Chairman of Range Developments

Following Brexit, we are seeing Cyprus

noted he has a team of

established as the only common law

four covering India, which is growing

country of the EU, which is the closest

since the demise of the EB5 option. He

EU country to India with a three

said that for Indian families, the options

hour flight time to UAE, with strong

for family members to travel and access

legal infrastructure for Funds and

opportunities in the US is a key driver

other regulated investment vehicles.

for looking at Grenada passports. It

It has a strong shipping industry,

is the only option that can grant

with a skilled labour force, ideal for

residency rights within six months.

operating the headquarters of an international business from. It is an

Kuntal Dave noted from

“Onshore� jurisdiction with substance,

his research that 5,000

low levels of taxation and robust

HNIs (net worth > $1M)

regulation. The higher education

per annum are leaving

sector is well established and creates

India, which is a substantial flow. Dubai

well trained graduates and investment

is a popular destination, which is

opportunities.

safe, well connected and very familiar to Indian families. However, recent

Grenada is a small Caribbean island

changes in the Indian budget will

economy that is seeking to promote

pose challenges to those who plan to

investment into local infrastructure in

maintain business interests in India but

exchange for a passport that can grant

to become non resident by changing

its holder access to the US and other

tax residency to the UAE.

destinations that are attractive for HNW 21

IN REVIEW: MUMBAI

Present Rules

Proposed Rules Finance Bill, 2020

Resident • Physical presence > = 182 days in current PY; or • Physical presence > = 365 days in last 4 PYs & 60 Days in current PY • For Citizen of India/PIO: • Being outside India; • Comes on a visit to India in the current PY, 60 days to be read as 182 days

Resident • Physical presence > = 182 days in current PY; or • Physical presence > = 365 days in last 4 PYs & 60 Days in current PY • For Citizen of India/PIO: • Being outside India; • Comes on a visit to India in the current PY, 60 days to be read as 120 days.

Resident but not ordinarily resident • Non resident in 9/10 preceding PYs, or; • < 729 days /7 preceding PYs

Deemed to be resident • An individual, being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature.

Resident but not ordinarily resident • Non resident in 7/10 preceding Pys

The proposed Indian Finance Bill of 2020 contained seismic changes that will have a major impact on the plans of internationally mobile entrepreneurs. If Indian HNIs become non resident anywhere, they will be deemed resident in India. This could with the UAE where individuals are not liable to tax there, they will be taxed in India.

Mohammed Asaria noted that this proposal has sent a shockwave through the NRI community. The Indian government tried to reduce concerns with a memo but the intention is clear. It is very topical among the high echelons of society. Grenada has no 22

IN REVIEW: MUMBAI

agenda to tax investors coming under

she has seen the LRS allowance being

the citizenship program. They have no

used to build up offshore trusts, which

requirement to raise huge tax revenues.

can be invested with flexibility and if

An important consideration is the

allowed the compound, can build into

impact of LRS and how families

a substantial fund for the family.

legitimately fund citizenship applications. The US & UK investor

Hemang Parekh,

scheme require investments well above

Partner at DSK Legal

the $250,000 annual limit. Questions

noted that a lot of HNI

could be asked later about how funds

children reside abroad,

were made into the schemes with

so many remittances are made to

requirements above this limit. Grenada,

fund family members abroad. The

on the other hand, falls within the

next generation offer donâ&#x20AC;&#x2122;t want to

annual allowance with a required

run the family business back home so

investment of $220,000.

this represents a wealth transfer with an emotional basis, rather than Indian HNIs seeking investment opportunities abroad.

Panel 2: International Estate Planning

Kuntal Dave moves the conversation into the Family Office field, where

The second panel of the Mumbai event

Bijal Ajinkya, Parnter

was on the topic of International Estate

at Khaitan & Co noted

Planning. Kuntal Dave opened out this

that it is very common

new discussion with some key statistics

to see Indian families

to set the scene: $13 Billion per annum

creating structures outside the country.

is leaving India under LRS and top

This gives increased flexibility and

destinations for these remittances are

reflects the mobility of the family. Many

Singapore, US & UK.

entrepreneurial families consider the Family Office set up at an early stage as

Hetal Sanghvi, Partner

they take a successful Indian business

at Edwin Coe in

into new markets. The family members

London, agreed that

decision to relocate is driven by an

international investment

opportunity to take the business into a

is part of the landscape for HNI Indian

new market.

families. On a more modest scale, 23

IN REVIEW: MUMBAI

Hemang noted that the

Hetal had seen a number

family office set up is

of Indian families using the

often linked to protection

UKâ&#x20AC;&#x2122;s Sole Representative

of IP in a robust legal

Visa to establish a London

jurisdiction. Being located outside of

family office, which is a useful exemption

India reduces fears of being found to be

for professional staff required in the

non compliant at a later date.

UK. For HNIs who wish to move to the UK as part of the Family Office, they

Bijal noted that there

should consider the Remittance Basis of

is a surge in creation of

taxation for pre-existing wealth.

Family Offices driven by the next generation of

There are a number of steps that need

the family seeking to monetise and exit

to be taken prior to arrival in the UK

a family business. The trust structure is

to ensure capital can be enjoyed in

the core of a family office, with a variety

the UK after arrival. Without such

of entities underneath, providing tax

planning bringing money into the UK

efficiency and asset protection for the

can generate substantial tax liabilities.

family.

Consideration should be given to offshore investments, where using Indian When working closely

Mutual Funds that can generate offshore

with families, Michael

income gains, which are taxed in the UK

Powell, Director at

on remittance at a penal rate. Offshore

Hawksford noted the

trusts in locations like Jersey are useful

need to be able to say no. The trustee

vehicles for those with existing wealth to

will work closely with tax and legal

protect when moving to the UK.

counsel to ensure the structure doesnâ&#x20AC;&#x2122;t create liabilities for the family. Once the

Bijal discussed the

structures are established, the trustees

difficulties of offshore

require emotional intelligence and

trusts being controlled

consider all the necessary processes to

from India; this will bring

protect the family. A tension arises when

the entire structure into the scope of

a client wants to retain control but also

tax in India. Settlers must understand

have asset protection; there is often a

the limitations of such structures.

trade off between these two concepts.

Consideration must be given to the likely destination of beneficiaries in the future.

24

IN REVIEW: MUMBAI

Panelist Bios Kuntal Dave. Kuntal is an experienced Chartered Accountant with over 24 years of experience in the matters of Corporate Finance, advising clients on tax, attestation, foreign exchange and valuation matters.

He is actively involved in assisting and advising clients on various aspects of cross border transactions affecting international tax, commercial laws and regulatory compliances.

George Campanells. George Campanellas is the Director General of Invest Cyprus and the Vice President of the Cyprus Investment Funds Association (CIFA). He has nearly twenty years of professional experience in Cyprus and abroad, working with the DG Competition in Brussels and directly with the Cypriot Ministers of Health and Energy, Commerce, Industry & Tourism.

Mohammed Asaria. Mohammed Asaria is Managing Director and Board Member of Range Developments, an international luxury hospitality development company that develops luxury resorts in the Eastern Caribbean under Citizenship-by-Investment programs. Born and raised in England, Mr. Asaria has a dual background in law and investment banking.

A graduate of Trinity College, Cambridge, he began his career at Lovells, the international law firm.

An interest in structured finance and investment banking led him to move to HSBC prior to founding Range Developments, the company that has grown to become the leading Citizenship-by-Investment developer in the Eastern Caribbean.

25

IN REVIEW: MUMBAI

Hetal Sanghvi. Hetal is a Partner at London law firm Edwin Coe who has worked extensively with Indian families and advisors, managing pre arrival planning and cross-border succession. She is a qualified Chartered Tax Advisor and achieved distinctions in her ATT qualification. She was also voted Top 35 Under 35 for 2015, 2016 and 2017 by eprivateclient.

Michael Powell. Michael is a Client Director at Hawksford in Jersey who is well-respected, skilled personal adviser and trustee with over 30 yearsâ&#x20AC;&#x2122; experience of working with families, young entrepreneurs and the inherited wealthy. He has built lasting relationships with clients, their advisers and intermediaries during his 30 year career.

Bijal Ajinkya. Bijal Ajinkya is a Partner at Khaitan & Co in the Direct Tax, Private Client and Investment Funds Practice Groups in the Mumbai office. With over 19 years of experience, on the tax side, Bijal primarily focuses on international tax, structuring of inbound and outbound investments, M&A tax negotiations, providing opinions on complex tax issues on international tax, GAAR, POEM, PE, MFN, etc.

Hemang Parekh. Hemang is a Partner at DSK Legal in Mumbai and transaction lawyer and advises clients on their investment and strategic decisions in the areas of corporate laws, commercial laws and other related laws. He has significant transactional experience in transactions of diversified M&A and private equity sectors. He has extensive experience in advising various multinational and domestic companies and private equity funds in the areas of corporate laws and other related laws.

26

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27

THOUGHT LEADERSHIP

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