- Jan. 3, 2020
-- With the Conservative party having won yesterday's UK general election with a landslide victory, the way is now clear for policies to be put in place which once again favour London as a global financial destination for international families, thinks ZEDRA Group.
Bart Deconinck Deputy Global Chairman of ZEDRA Group believes that "the impact of Brexit is likely to be felt far beyond the current narrow debate between Great Britain and the EU". Deconinck points to discussions which are underway in Europe to introduce new forms of taxation for wealthy residents. "In a week where the EU Commission has unveiled their European Green Deal, which will certainly lead to more regulation, more spending, more taxes, more protectionism and more top-down control. What can possibly go wrong?" he asks.
ZEDRA is a rapidly expanding global specialist in trust, corporate and fund services with offices in thirteen countries, a factor which helps to give it a broader view of trends in global wealth flows. The company is briefing clients that, as a culturally open and highly deregulated society, the UK will be well positioned to create a global niche for business and thus become the Singapore of Europe, irrespective of its future relationship with the EU.
Deconinck continues, "Here at ZEDRA, we are constantly monitoring changes in transnational taxation and regulatory policy direction. Our clients, who typically tend to be successful international entrepreneurs and families, have a direct interest in how the global regulatory and taxation systems are evolving and changing to meet new revenue planning objectives. Clients are mobile, as is their wealth, so if they choose to move from one jurisdiction to another, that might be as a result of a wealth preservation or growth strategy, or it may be because of a concern over political stability or a combination of both."
ZEDRA's international approach to administering client assets, a concept it calls "active wealth", is ideally suited to these new, fluid times. It is an approach which is deliberately designed not to try and be all things to all people. Under an umbrella it calls 'Active Wealth', ZEDRA is able to provide a single point of contact for the administration of a wide range of assets for families who tend to have diversified investments. ZEDRA supports clients globally with the administration of the relevant structures they require, including their corporate investment ventures, single-family offices, or private funds for various family members.
One thing is certain. With Brexit and the UK election now more clearly defined in terms of outcomes, Europe's wealthy families now need to look carefully at the changes which are on the horizon and consider new strategies to preserve wealth, which will almost certainly involve a substantial global relocation of assets.