The de Vere Group, the global independent financial advisor, gives advice on what people should do in the run-up to the start of the US FATCA Act and describes its own business plans.

Editor’s note: The deVere Group, a global independent
financial advisory firm that this publication's sister site reported on recently about its expansion
plans, has also commented on how the upcoming US FATCA Act legislation – taking
effect in stages from 2013 – has prompted a surge in client enquiries. (To view the article, click here.) A
controversial law, FATCA is designed, its framers hope, to stamp out offshore
tax evasion. Critics say the legislation typifies the oppressive nature of US’s
worldwide system of tax, contrasting with the territorial approach enacted by
most other jurisdictions. Whatever one’s views, FATCA is a big issue for the
global wealth management industry. This publication recently asked Nigel Green,
chief executive at the firm, for his views about the impact of FATCA.

You say the volume of
enquiry has gone up by 65 per cent over three months - is that compared with
the same sort of period last year?

There has been a 65 per cent increase in the volume of
enquiries in the last three months (April, May, June 2012) as an increasing
number of US citizens, especially high net worth Americans, begin to realise
the implications of FATCA.

What sort of
enquiries are you getting about FATCA?

People are asking our advisors questions including: How can
I be FATCA-compliant and still be tax-efficient? What preparations do I need to
make and do I need to make them now? What types of payments will be affected?
If my country of residence has a tax treaty with the US, am I exempt from the
implications of FATCA?

What sort of
problems/issues are people telling you about concerning FATCA?

Many of those enquiring are concerned about the lack of
available, public information, about reporting obligations, and about the
implementation time frames.

How many banks/other
institutions do you think are turning Americans away? How big a problem is this
proving to be?

Some of the major names in wealth management are now
refusing American clients as dealing with them, they feel, will prove to be too
costly and/or complex. I suspect this will continue as we approach 1 January
2013.

This is a major problem for US citizens who have foreign
accounts because FATCA is new legislation and they need to be advised correctly
from the start and there are fewer and fewer advisors willing to assist them.

However, the deVere Group is committed to ensuring our
valued American clients have a smooth transition into the FATCA era, and
beyond, and have, therefore, invested a lot of our resources in this area.

What sort of advice
do you typically give people?

The sorts of advice we give to each client varies
considerably as every one has different circumstances and financial goals. And
for these reasons, it’s imperative that ahead of the implementation of FATCA,
Americans who live overseas or have dealings with foreign financial
institutions speak to an independent financial advisor who has experience in
expatriate financial planning.

Over what sort of
time-frame do you see this sort of heightened enquiry continuing to exist?

We fully expect this heightened level of enquiry to
continue, and indeed increase, as we approach the 1 January 2013, the date from
which all US
citizens will need to start reporting their worldwide earnings to the IRS.

Are you thinking of
hiring more people to deal with FATCA?

As a direct result of soaring demand from US citizens, we’re
recruiting leading industry professionals to ensure we deliver a world-class
service to our existing and potential American clients.