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 don’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
UK’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 doesn’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 years’ 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
Thought Leadership Prime or corporate member? Contact lucy@pcd.club to share your news or advertise.
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THOUGHT LEADERSHIP
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