deVere Group delivers results to expats investing money – and those customers show their thanks by staking their cash and recommending the company to other expats.
The business model is simple.
deVere Group says to expats we’ll look after your money and help you with financial planning, and if we do a good job, we’ll ask you to refer us to some friends or colleagues.
That’s how the company started out in 2002, and that’s how the company works now – 80,000 customers later.
Customers giving that number of word-of-mouth referrals and handing over more than $10 billion to deVere Group to invest on their behalf shows some level of satisfaction and trust.
Expats fell through a gap in the market
Chief executive Nigel Green saw the gap in the market while working overseas as a financial adviser and decided to concentrate on helping expats with their finances by forming his own company.
The premise was expats fell through a hole in the market and that they needed skilled help with their financial planning that was not available from local advisers.
Most IFAs train to service local customers, but expats who are on the move in fast-paced careers did not stand still long enough for local companies to build relationships and research the market for suitable pension, saving, investment and insurance products to service their needs.
So, thought Green, set up a worldwide network of offices to give advice to customers wherever they are and source the products and services they need from global providers.
That network has mushroomed to more than 50 offices with more than a thousand staff, including hundreds of IFAs.
United nations of financial services
Now, expats are never that far away from a deVere Group office or adviser wherever they from Australia to Zimbabwe.
“I was a financial advice for another company and when my boss retired I set up my own IFA firm. After gaining some experience in advising abroad I realised that what was needed was a company offering advice exclusively to expats,” said Green.
He explained deVere Group’s main focus was British expats, but over the years, the client base has swollen to include many other nations, including Americans, Germans, Swedes and the French.
With the rise of the Middle East and a shift in wealth to the Asia Pacific, deVere Group has expanded to cover the needs of expats in these places as well.
“I suppose we are a true united nations of financial services,” said Green. “What we want is to look after clients wherever they are, so we want to give best advice on a global scale.”
Coping with Brexit uncertainty
That caveat between satisfied clients and deVere Group becomes even more important for expats following the Brexit referendum vote for Britain to leave the European Union.
The result has injected uncertainty into expat finances, not only in Europe but the world over as economies are braced for the impact of Britain building new trade agreements with partners new and old.
Expats need to guard their finances and make the right decisions to protect their wealth and pensions while facing risks and opportunities that are yet to present themselves.
To find some calm in turbulent seas they need to have financial advice that is reliable, considered and tailored to their plans for the future.
Plunging Pound drives QROPS transfers
The Qualifying Recognised Overseas Pension Scheme (QROPS) is one avenue many expats are considering as one safe haven for their wealth.
QROPS allow British expats and retirement savers from other countries who have contributed to a UK pension scheme to switch their funds offshore to one of close to 50 financial centres.
deVere expects to see a surge of expats looking to QROPS to protect their retirement savings.
The driver is the plunging Pound.
Expats living in a non-Sterling country see their spending power fall as the value of the Pound weakens against other currencies.
The prospect for those approaching retirement on a fixed income is the disposable income they were expecting diminishes, placing anyone with a pension paying in Sterling at a disadvantage.
Protecting pension spending power
QROPS allow expats to easily change trains from a UK to offshore pension that can be dominated in a foreign currency of their choice, offering a buffer from volatile exchange rates.
“Other associated benefits of QROPS is that monies can be passed on to heirs after death after five full years of non-UK residence,” said Green. “They also offer greater investment flexibility and freedom while there’s a possibility of dispelling UK income tax or death charges of as much as 45%.
“Another major factor why demand for QROPS is set to skyrocket, is due to the anticipated increase in expat numbers.
“This is mainly down to the fact that while Britain is still a full member of the EU people who are considering retiring to locations such as Spain and France, wont hang around too long.
“These individuals will want to move their lives and money while it is still relatively straightforward to do so. The impact of Brexit will make moving to other EU countries far more difficult for Brits after the UK has formally left.”
What will happen to QROPS on Brexit
Green also explained that Brexit has highlighted the status of QROPS in Europe.
“QROPS began under EU law, but there are now separate agreements in place between the UK and individual jurisdictions, Malta for example, in relation to pension transfers,” he said.
“As such, when the UK officially leaves the European Union, such agreements will be upheld. So the pension funds set up in these jurisdictions will still fulfil the criteria in order to be recognised as overseas pensions schemes under UK legislation.
“Therefore, it’s safe to say that the global financial advisory sector, in which deVere is truly dominant force, is set to begin a stage of colossal activity and growth in the aftermath of the Brexit vote.”
Expat clock is ticking
Green also points out that when Britain triggers Article 50 to signal the start of negotiations to uncouple from the EU is important.
Prime Minister Theresa May wants her negotiating ducks in order before pushing the exit button and has hinted this may not happen until early 2017.
For expats, the date could be crucial as British government is offering all legal EU expats in the UK the right to stay, but will not give the same right to those arriving after the Brexit trigger date to stave off a rush for citizenship.
The same is likely to apply to British expats wanting to relocate to the EU, which means the clock is ticking.
Don’t forget healthcare and inheritance tax
Expats have to consider more than just financial planning when making decisions about how to invest their money.
That’s where a company such as deVere wins again.
Expat financial advice is about more than understanding pensions and investments.
A good adviser needs to know about life cover, private healthcare, estate planning and the vagaries of how cross-border tax can impact on expats living anywhere from Afghanistan to Zimbabwe.
Brexit brings issues like pensions, healthcare and inheritance tax to the fore as the rules are likely to change in Europe, depending on which country an expat lives in.
deVere has a team of experts whose job is keeping up with ever-changing global tax and financial regulation to make sure clients have the most up-to-date and relevant information available for making those important life decisions which can shape their futures for years to come.
Best of British financial advice
Green and deVere Group regularly win awards for the quality of their advice to clients from industry peers, but the accolade for the UK arm of the firm from the Chartered Insurance Institute trumps many of them.
The UK branch of the group now has chartered status that reinforces the focus on providing the best of British advice to expats.
To gain chartered status, deVere has had to meet a number of tough conditions from the board down.
One is the Best Advice Team, tasked with ensuring ongoing improvement in standards and best practice which includes linking with professional lawyers, investment managers and tax specialists.
Commitment to clients
“There are many factors that set deVere United Kingdom apart from its competitors in recent times,” said Mike Coady, managing director of deVere United Kingdom.
“The award of corporate chartered financial planner status illustrates our continual commitment to raising standards and expertise, providing the highest quality advice backed up by world class service and support for our clients – who are our most valued asset.
“Our focus on continual development is recognised by this achievement and helps to set us apart from our competition.
“We set our sights high in order to achieve corporate chartered status, to demonstrate that we can provide the highest possible planning service to our clients by proving that we meet stringent criteria, regarding professional qualifications and ethical standards.”