Estate planning and wealth management services providers typically utilize one or a combination of several products to meet the needs of their clients. These needs broadly include wealth preservation, tax optimization and inheritance/estate planning. The products used to achieve these needs include tax exempt (“offshore”) companies, private foundations, trusts and various types of policies issued by insurance companies, sometimes collectively referred to as “Insurance Wrappers”.

In recent years we have observed drastic changes to the global financial services regulatory landscape. The estate planning and wealth management industry has been particularly affected. Global standard setting bodies such as the Organization for Economic Cooperation and Development (“OECD”) continue to drive policies, which are aimed at reducing the use of various primarily cross-border structures to mitigate what the proponents of such measures feel are “unfair” tax advantages or are somehow avoiding the spirit of domestic tax laws. Countries continue to adopt more policies aimed at tackling these cross-border structures such as Controlled Foreign Corporation (“CFC”) rules, residency based taxation and particularly onerous and uncertain provisions relating to “general anti-avoidance” of tax.

While the changes in the global legal and regulatory landscape have impacted and in some cases nullified the benefits offered by trusts, private foundations and offshore companies, Insurance Wrappers continue to provide excellent legitimate and legal benefits.

An Insurance Wrapper refers to a long-term insurance policy, issued by a registered long-term insurer, “wrapped” around the policy owner’s investment portfolio that is registered in the name of the insurer and also controlled and administered by the insurer. Insurance Wrappers offer asset protection as well as tax planning to the policyholders.

PKF Capital Markets (Seychelles) Limited is a registered Introducing Investment Broker of Solid Oak, a licensed long term insurer in the Seychelles.