Americans Expats and U.S. Connected Persons Face Investment Challenges Across the Globe

Expats face unique financial challenges living outside their home country. Americans & U.S. connected persons face even tougher challenges with regard to their investments – many financial institutions in their new local country no longer allow U.S. connected persons to hold investment products and increasing numbers of U.S. financial institutions are closing brokerage accounts for U.S. connected persons with overseas addresses. Additionally it is not possible for those living outside the United States to invest in U.S. mutual funds.!

The U.S. Foreign Account Tax Compliance Act (FATCA) has paved the path for subsequent and more global regimes, notably the Common Reporting Standard (CRS). Providing an investment solution to expats including an American or U.S. connected person was difficult in the past, not any longer thanks to new solutions on the market. The recent increase in renunciation of U.S. citizenship by wealthy citizens living abroad is likely a result of dual taxation and excessive U.S. expat taxes assessed on U.S. citizens’ worldwide income. Complex and changing tax reporting regulations limit the investment options for these undeserved individuals.

In considering investment options American & US connected persons need not only to consider the investment returns and the quality of the investment manager but also factors such as the liquidity of the investment (from daily stocks to pensions where benefits may be taken until retirement), the standing of the country that regulates the investment, and the ability to correctly report for taxation purposes.

If you want to know more about solutions that are available for expats, including Americans & US connected persons, then please contact us and we will connect you with a cross-border financial adviser.


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