Need assistance on investment strategy

[eddiep]

Hi all

 

I have some savings that I want to work harder for me.

 

I was made redundant from my job and luckily for me achieved a pretty generous payout. I decided to hedge against currency risk by putting half of the money in GBP in my UK bank and half banked locally with CBA. Both tranches are sat in saving accounts with low interest rates

 

I now want to invest this money sensibly into some balance portfolios of fixed terms deposits and stocks. The challenge that I am having is that I want to be able to work with a supplier that can help me invest both the UK cash and the AUD. I tried my banks (HSBC and CBA) and they were worse than useless - they will only deal with their local market stuff.

 

Any advice much appreciated. Naturally I want to make this as tax efficient as possible.I am a 457 visa holder.

 

Thanks in advance

[Ken]

The problem the banks have is that there are very tight regulations around the provision of financial advice in both the UK and Australia. HSBC is licensed to provide Financial advice in both countries but that advice has to be provided by individuals None of the individuals in Australia will be licensed in the UK and so are prohibited by law from advising on UK investments with you. None of the individuals in the UK will be licensed in Australia and so are prohibited by law from advising on Australian investments with you. Even if you consider yourself a savvy investor and don't want any advice they still can't help you because they've been bitten by the law in the past when they've had to compensate investors in that situation.

[eddiep]

Thanks for the clarification Ken. What would be best for me to do then. This will presumably be the case for all IFA's?

[Andrew from Vista Financial]

Ken is spot on eddie.

 

You will require an Australian Adviser to give you advice in relation to Oz investment products and vice versa for the UK.

 

Some options/food for thought:

 

 

• Get an Adviser to give you strategic advice in one or the other countries, let them recommend the investments in that country and you choose the investments yourself in the other (if you feel able/confident/experienced to);
  
• Engage Advisers on both sides to give strategic and investment product advice (perhaps where there is a relationship between the Advisers so that with your consent they can share information);
  
• Consider investing all funds outside of Oz (given your visa it would seem that this could be a tax advantage (tax advice required), I understand you wish to hedge bets on currency however it may be possible to invest in assets in Australian Dollars outside of Australia (potentially even in a country with favourable tax treatment).
  

 

 

 

Ways in which we (I/Vista Financial Services) can assist are:

 

 

• We have a relationship with an International Advisory firm (UK regulated Advisers) who provide advice to UK expats and they can provide investment advice on UK/EU and US products.
  
• We are regulated to give strategic investment advice and Australian product investment advice.
  

 

 

Please let me know if you wish to consider our assistance.

 

Kind regards

 

Andy