Why our dual registration status is so important

06/01/2023

As you read about in the introduction, Charlton House Wealth Management (CHWM) recently won “Best Adviser Firm (established under 3 years)” at the 2022 International Adviser awards for both our UK and Hong Kong businesses.  They now sits in our trophy cabinet, alongside the best practice award that we won in 2021. Well, they will be once we receive them in the post and we buy a trophy cabinet.

As with all awards, there were strict entry criteria including a detailed written submission answering questions about our business.

One of the key points we took pains to stress in our entries was our dual registration and why it’s such an important feature of our client proposition.

Although we obviously weren’t privy to their discussions, we’d like to think that this unique point helped sway the judges’ deliberations in our favour.

Below I discuss why I believe dual registration is so important when it comes to delivering financial planning services to our clients.

Dual registration is a key component of our business proposition

CHWM launched in 2020 with businesses in both Hong Kong and in the UK.

Nearly three years on, we have established a high-quality, professional service, advising clients across both jurisdictions and providing independent insights for clients that are tailored to their needs.

All clients have access to a dual advice enabling you to seamlessly build and transfer your wealth between Hong Kong and the UK.

Business practices differ in the UK and Hong Kong

I’d previously worked in Hong Kong and developed a deep understanding of the type of challenges you can face when it comes to your financial plan.

Business practices can often be less than ethical in Hong Kong financial services, something I have witnessed first-hand.

In contrast, UK financial services can be overregulated and overcautious. But sometimes that can be a positive advantage.

Yes, there can be ethical issues in the UK, but the differences between the ways financial services are conducted in the UK and Hong Kong can be stark.

The importance of dual registration when it comes to financial advice

Being authorised to give financial advice in both the UK and Hong Kong means we can support you at both ends of your journey if (or when) you decide to relocate. As you’ll be aware, the direction of flow is clearly from Hong Kong to the UK at present.

It also means that, all the time you’re living in Hong Kong, you can enjoy the services of an experienced advice company with a strong presence in the UK.

Furthermore, you can benefit from valuable longevity and continuity in your relationship with Charlton House. In a previous article we touched on why this is so important, and it’s well worth a read.

Our dual advice service means we can create a client journey for you that is consistent and repeatable.

The problem of 2 different tax jurisdictions

One of the most concerning issues for many of our clients is having financial assets in two different countries with very different tax regimes.

This becomes an increasing concern if you’re planning to relocate from a low-tax jurisdiction in Hong Kong to the high-tax one in the UK, for both personal and corporate assets.

There’s a great contrast between the taxation regimes of Hong Kong and the United Kingdom, and we look to reflect these differences in our advice.

Having a first-hand knowledge and understanding of both can be an invaluable asset when it comes to helping you manage your money in a tax-efficient manner.

Relocating to the UK

One of the best ways to illustrate why our dual registration could be so important for you is to consider the example of a CHWM client. He is currently living in Hong Kong and is set to relocate to the UK this year.

We’ve previously helped him put together a robust investment portfolio that has enjoyed healthy returns.

Under normal circumstances, his move to the UK would entail having to switch to a new adviser authorised to work in the UK.

Such an adviser would not have the in-depth knowledge of his investment affairs, including his attitude to risk, goals, or the details of his portfolio. So, there would be a real danger of mistakes, and him not getting the best advice.

Instead, our dual registration means he will benefit from the continuity of advice we provide, potentially lowering the impact of his relocation on his wealth in both the short and long terms.

We looked at this in a previous article when we outlined some of the key considerations if you’re planning to relocate yourself.

Having the same advice firm at each end of your relocation journey could make all the difference to your financial future.

Get in touch

If you have any queries regarding the issues you’ve read about in this article, please get in touch.

You can contact us by email or, if you prefer to speak to us, you can reach us in the UK on +44 (0) 208 0044900 or in Hong Kong on +852 39039004.

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