The world you inhabit as an IFA or a Wealth Manager is complex, filled with rocky roads and muddy waters. You help to guide your clients to their safe haven through expertly selected products and strategies, and avoid the potential pitfalls and chasms of popular yet unwise trends (what's the price of Bitcoin now?... And how about now?).
Yet when it comes to foreign exchange, it's often simply accepted that 'my client has this covered', or 'they use their bank'.
Imagine if this was the approach with all financial products!
No one to help a client select the best ETF, or build their SIPP, in fact we may as well just let everyone pick a couple of stocks and then leave the rest of their money in their bank for a lovely 1% annual interest!
I'm taking this to absurd levels of course, but the point stands.
If your client has a requirement to exchange currency, why not introduce them to a provider who can a) provide the best service to navigate their specific currency pair & transaction, and b) provide this service for an excellent rate.
So when is this relevant?
Key transactions or events we assist Private & HNW clients with include, but are not limited to:
- Foreign property purchases/sale: whether it's a holiday home or an investment property, the act of sellng or purchasing a foreign property entails a sizeable currency transfer. Even if a local mortgage provider is involved, the deposit will require converting to local currency.
- Extended holidays/short-term living abroad: many clients of ours spend winters in the sun, or summers abroad. These instances require living expenses and oftentimes accommodation expenses to be converted to local currency. Many clients have children who attend University or School abroad, which again entail regular currency transfers for subsistence, fees and rent.
- Permanent Relocation: The world is becoming smaller, and people move countries all the time. If your client relocates to another country, they're likely going to want to move a larger portion of their liquid assets.
- Divorce and Probate: Life, and unfortunately Death, happens. When beneficiaries of wills and trusts are abroad, estranged spouses relocate, or foreign assets are involved in said instances, a currency requirement appears. At a particularly stressful time, having an expert on hand to ensure it goes smoothly tends to be appreciated.
- Other Asset purchase/sale: if your client purchases shares in a foreign company, art from an international dealer, or sells their business to a foreign investor, a well selected currency partner can save material sums.
Allowing a client to utilise their retail bank will result in them being significantly overcharged, while in most cases they will be presented with an online-only single option service with no actual assistance.
Introducing them to a service provider such as Currencies Direct who focus solely on currency transfer will potentially save them up to 4% of the total transfer value in fees, while offering an expert handheld service to sail cleanly and clamly through those muddy waters. When it comes to a £1m+ property for example, you're talking about a material saving.
I don't ask for FX to become the main focus of advisers or managers, but I do suggest that it be treated as an important aspect of the management of private client finance. After all, saving 4% on a currency transfer is a pretty attractive additional return!
So, if you're interested in seeing how partnering with Currencies Direct can save your clients money and stress, while also earning you a additional revenue, get in touch with me at alex.sutherland@currenciesdirect.com or on 07549 212 557.
Having worked in Big 4 Accouning an Financial Services sales for a number of years, with an 'Entreprenuerial sabbatical', I'm currently building my network of valued partners whereby I can help them…
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