In terms of the long-term maintenance of existing mandates – fiduciary, asset management, custody, etc – which are crucial to institutions dealing with internationally mobile clients, BVL’s pan-European proposition gives IFAs greater scope to support clients where financial planning requirements extend beyond consideration of just one tax regime.
When an insurer operates compliantly in so many jurisdictions, its systems and resources can be trusted to support advisory and service mandates over the longer term and across generations.
BVL’s IT systems output in eight European languages and it looks to support policyholders throughout the life of a bond.
What type of clients does the company target and how do its solutions leverage BVL’s experience across Europe?
The Luxembourg regime for insurance provides some base parameters.
BVL policies may have a minimum of €25,000 ($26,993) but to access a Targeted Investment Strategy, where an external discretionary fund management manages a segregated account, Luxembourg regulations, in most circumstances, demand at least €250k is invested.
The ability of these accounts, under Luxembourg laws, to invest in the full range of permissible assets, including unlisted equity and debt, is only possible once the client invests greater than €2.5m.
While holding unlisted securities may not be relevant to UK residents, it can be important in other markets.
In fact, the ability to widen and narrow a policy’s investment scope under foreign regimes is another key differentiator.
Consider a UK practitioner ensuring clients arriving in the UK with a foreign law policy adapt the policy to UK rules prior to the policy year end.
Those practitioners might also consider widening or narrowing the investment scope of a bond if a client is leaving the UK.