Chapter 17 -  What You Need To Know About Real Estate & Terrorism Risk

Chapter 18 -  Solutions To New Regulatory Burdens and Risks
Case Study # 10 Inadequate Due Diligence
Case Study # 11  Be Careful When Banking Offshore

Section Five - How To Build Safe Protected Wealth

Chapter 19 - New & Enhanced Post 9/11 Wealth Planning & Protection Techniques

Chapter 20 - How To Choose an Investment Or Wealth Planning Advisor 

Chapter 21 - The Swiss Inner Circle

Chapter 22 - Other Global Consultants, Publications & Organizations 

Section Six - You’ve Protected Your Wealth Now Restore Your Liberty 
 
Chapter 23 -  Back To The Articles: Restoring the Republic With the Swiss Confederation Institute     

Chapter 24 – FreedomFest: Where Free Minds Meet  

Chapter 25- Don't Delay: Start Today To Preserve Your Wealth & Liberty  

Chapter 26 - Are You Willing To Pay the High Price For Freedom?  

Case Studies  

Resource Guide  

About the Author  

THE SWISS Preserve SOLUTION
How To Preserve What Is Yours!  Ron Holland's politically incorrect guide to defending your wealth & liberty
from internal and external threats in our new 21st Century 

Chapter 19 - New & Enhanced Post 9/11 Wealth Planning & Protection Techniques

Requirement For Strict Offshore Financial Provider Interpretation of U.S. Solicitation Rules

       It may come as a surprise to many American investors but there are no laws prohibiting U.S. citizens from investing offshore. However there are some strategically placed regulations to make sure certain offshore investment products are unattractive either from a tax or regulatory standpoint. For example, the U.S. tax code really makes the direct purchase of foreign mutual funds a very negative tax situation and other requirements affect the diversification requirements of offshore variable annuities.

       U.S. regulations take direct aim at offshore financial institutions and product providers by creating a financial "iron curtain" around the United States which prevents these offshore institutions from marketing their products and services into the U.S.  For example, offshore financial products which aren't registered to do business in the United States are generally prohibited from advertising, mailing materials, sending marketing e-mails or using the fax machine to promote their services.  Fines and penalties can be levied against firms who do not follow these rules and, more importantly, offshore financial firms with companies or affiliates in the states often find their U.S. counter parts held hostage by the regulators when they run afoul of American investment marketing restrictions. If you are considering investing offshore remember that using a firm without offices in the U.S. can often be beneficial. 

 No Marketing By Mail, E-mail, Phone, Seminars or Personal Meetings In Jurisdictions Where Prohibited

       For American investors, I suggest you keep your distance from non-registered offshore financial firms with high profiles in the U.S. or those that directly market and solicit inside the U.S. by mail, e-mail, seminars, phone or personal meetings.

       Be aware that the American regulatory prohibitions exist, so they say, to protect investors from unregistered and unregulated offshore products and firms but there are loopholes for sophisticated, accredited and high net worth investors as the regulators feel they have the net worth and investment experience to have access to investments that the average American does not. This is an important avenue for high net worth investors to review information and have access to offshore investments denied to the general investing public.

Choose A Fresh, New Client Start & Legal Approach

       Your offshore approach should be totally compliant, reportable when necessary and transparent with none of the old style hide, re-title and do not report aspects of earlier flawed asset protection strategies. It must be legal and designed to meet all current regulatory demands and reports. Be sure that all prospect and client access is controlled by technology in order to prohibit any marketing, sales or communication activities that might run afoul of tightening sales and distribution regulations. The new strategy may be structured to be tax-deferred depending on your home nation or jurisdiction until distribution or time  to repatriate the funds back to the client's home country.

       For offshore investors who have made innocent mistakes in the past, the right legal course of action is to contact the tax and regulatory authorities in your home country, find out what filings, reporting or tax regulations you might have missed and get right with the regulations and authorities of your country. Then, start over with a totally compliant and legal strategy, which is designed to defend your wealth rather than increase the risk of confiscation, fines and penalties if you have made mistakes in the past.

Become Free Of US Regulatory Risks To Foreign and America Based Clients

"A bureaucrat is the most despicable of men, though he is needed as vultures are needed, but one hardly admires vultures whom bureaucrats so strangely resemble.  I have yet to meet a bureaucrat who was not petty, dull, almost witless, crafty or stupid, an oppressor or a thief, a holder of little authority in which he delights, as a boy delights in possessing a vicious dog.  Who can trust such creatures?"                                                                      -- Cicero  

Outside the American Financial Provider Snitch Program

       Since 9/11 your America based stockbroker, banker or financial and accounting consultant is now forced to report any suspicious activities by clients or perspective clients to the appropriate regulatory and tax authorities.

Beware the American Rogue Broker Revenge Syndrome

       Most investors change advisors, stockbrokers, investment managers and financial planners on a regular basis. Studies show that 15 to 20 percent of a financial salespersons client base leaves each and every year in good years and bad. This is why your professional is always asking for referrals and the referral request usually starts just after you've opened an account for obvious reasons.  Often, the financial salesperson has come to depend on the commission revenue and has become complacent with your account, performance and service has suffered and the move often ends what has appeared to be a long-standing friendship from the clients point of view. Financial salespeople are trained to realize that developing and maintaining a personal relationship with their major high net worth clients is far more important than investment performance, service or glossy reports and one-on-one client dinners and social events. In the past, friendships ended and that was that. Now thanks to 9/11 and the confidential snitch program, you can imagine the potential problems for American clients if you are dealing with an unstable and vindictive American broker.

Case Study #12  The Snitch Factor

       John with the stockbrokerage firm of Churn'em & Burn'them has been dealing with a moderate sized client for a few years now.  John had convinced the client of his ability as a stock picker and the client commissions have over time become a large portion of the stockbroker's annual income. The problem is the account is now down to less than half what it was due to poor performance, combined with high and frequent churning of the account.

       The client is now considering moving the account and has discussed his future plans with the stockbroker. Now the stockbroker who was unstable to begin with is outraged because he has always spent more than he makes in order to look successful to his clients. Now, stuck with payments on the big home in the suburbs, kids education, the apartment in the city for the mistress and other bills, the broker is vindictive and out to get back at the client who he blames for his own mistakes. It will only take one phone call or written report to compliance and a mention of the client talking in private about hiding money or an offshore account and this will eventually result in the client being audited and hounded by a regulatory agency. The fact that all of this is just a lie doesn't matter as the wheels of injustice and harassment will cost the client much time, effort and money before he is cleared of wrongdoing possibly including full audits going back for years. Now if John's guess, happened to be true, then there might be more problems on top of the above harassment.  

       The only realistic solution to this risk is to have your investment funds and account outside the United States. There is not as much good news here as in some other situations.  The only way to decrease the risk of the above American rogue broker behavior is to choose your financial professional wisely if you must have a U.S. advisor. Second, work with professional advisors only on a fee basis rather than a commissioned sales agent. The good news is with the a new asset protection strategy at least your foreign financial affairs would be legal, transparent and fully disclosed therefore this might cause the authorities to cut short their audit.

Escape the Wall Street Excesses & Reporting Scandals

       Although the Wall Street financial establishment would have you believe that the many regulations and prohibitions concerning offshore investments are in place to protect you from offshore crooks, charlatans and excesses in less developed markets, this is total propaganda. What jurisdiction had the Enron situation, the accounting firm problems, the Martha Steward outrage, the recent mutual fund disclosures starting but not ending with Putnam funds or the $100 plus million retirement package the head of the NYSE created for himself? My point is scam artists and financial crooks are all over the globe and nothing about Wall Street is a paradigm of virtue. In the U.S. the regulatory environment does little to protect the average investor while keeping out much of the offshore competition. These Wall Street excesses are another reason why hundreds of thousands of American investors are heading offshore while they still legally have this opportunity.

For Additional Reading, Research & Essay Links Regarding This Chapter:

Ron Fact, Book & Video Recommendations For This Page:
Although a minimum level of regulations can be helpful and provide some level of protection both at home and in foreign jurisdictions, most only exist  to protect vested financial interests and generate revenue for the regulatory agencies. - Ron Holland

 

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