Less regulatory distinction brings complication

offshore

FSA rules introduced this February via its COLL rulebook have made an increasingly slender distinction between onshore and offshore worlds in terms of fund type and investment strategy, and for the adviser there are now several comfort levels to be derived from FSA regulations on funds.

On an increasingly crowded island non-UK domiciled funds, or offshore funds, continue to play a major role in people's financial planning, but increasingly the tax benefits are harder to sustain than has been the case in the past. In some ways the onshore vs offshore debate is already an outdated one as many international groups have fund ranges in a variety of jurisdictions. While the vehicles may differ from location to location, they may well be managed by the same fund manager to the same investment objectives. Techniques such as cloning and pooling, permit fund management houses to...