Committed to US clients.
As my job as Head of MASECO Institutional involves working with financial advisers, wealth managers, private banks and Trust companies I have been in the right place to observe a growing phenomenon which has caused a great deal of inconvenience and concern to US taxpayers in the UK – that is the trend amongst financial service providers, banks and investment managers to close accounts for US taxpayers and to ask them to take their business elsewhere.
The latest in a long line of firms to do so was announced by The Times newspaper last Thursday – National Savings & Investments (NS&I) – the home of Premium Bonds. According to The Times, NS&I is closing the accounts of 3,000 investors who are US nationals, citizens or residents. This is noteworthy in that NS&I is not just another investment company but is the UK’s state owned savings bank and is in effect a government department1.
The enhanced reporting and compliance requirements of US legislation such as FATCA is often cited by firms as the reason for their exit from the US client space with others noting the financial risk and the huge fines such as the $2.6 billion levied recently by US authorities on Credit Suisse as the reason that they feel US business is too “risky” for them2.
For clients who find themselves “orphaned” and abandoned by their current providers there are often limited options unless they know about specialists such as MASECO.
Against this back drop MASECO is looking to increase our capabilities to assist US tax payers and their advisers. We have announced that we plan to increase considerably our head count over the next five years which will allow us to continue to do what we do but hopefully to do it even better and maintain our quest to deliver a phenomenal client experience.
Head of MASECO Institutional