Taxation Liability

Taxation Liability

Taxation Liability

Introduction

The independent financial adviser is a new professional normed by the European directive MiFID implemented in Italy in November 2007. This is a professional paid solely to plot (as a lawyer or a doctor), who studies financial markets and examine the best alternatives, explaining to the customer benefits, costs and risks of each alternative. The task of the independent financial adviser is to thoroughly understand the needs of the customer to choose the tools that have the highest likelihood of achieving the goals it puts the customer within the constraints of performance, risk and cost.

The Independent Financial Adviser can be only a natural person and cannot give any other investment service and is regulated by Article 18-bis of Decree Law 58/98 mentions that "the reserve of the activities referred to in Article 18 - or consulting activity does not affect the possibility for individuals, meeting the requirements of professionalism, integrity, independence and property set in a regulation.

High net worth individual

For most people, handling their own finances or choosing suitable investment avenues is a herculean task. Think how much more formidable it would be if the net worth runs into thousands of crores of rupees? Such ultra high net worth individuals (UHNIs) can fortunately fall back on an exclusive advisory service called the family office. It helps them avail of services beyond the routine investment advice doled out by wealth management companies.

For managing wealth, the high net worth individual with a team of professionals, which oversees his entire financial needs, including asset allocation, investment policy, cash flow management, performance reporting, plan execution, trust administration and succession planning. Some family offices also provide advice on philanthropic activities. This relationship usually stretches beyond the lifetime of an individual, extending financial guidance to several generations of the family. Usually, the minimum net worth of an high net worth individual; if you have a net worth lower than this, the services of a wealth management company will suffice. High net worth individual are those individuals who have high net worth in terms of money/ wealth. In banking world, HNWI has been defined as the investable people who can invest worth of money like excess of £1 million (€1.17 million) in financial assets excluding primary residence. In other words, person with large investable assets has investable assets of at £1 million according to the “World Wealth Report”. An asset that cannot be invested (e.g. residential property) is not to be added to investable assets. In Switzerland, some banks and asset managers set this limit at 5 million Swiss francs. Banks offer their customers individual HNWI wealth management services. Out of a total of 174 million-pound-plus donations made during 2009/2010, 60% of the money came from the very wealthy, said the study entitled The Million Pound Donors Report 2011.

This paper focuses on those clients who are high-net worth individuals and need to obtain advice how best to arrange their savings and investments to achieve maximum tax ...