Latest news with #wealthManagement
Yahoo
24-07-2025
- Business
- Yahoo
Morgan Stanley under probe for wealth management client vetting issues
Morgan Stanley is currently facing an investigation by the Financial Industry Regulatory Authority (FINRA) concerning its wealth management client vetting processes related to potential money-laundering risks, as reported by the Wall Street Journal (WSJ). The inquiry is examining the firm's client risk assessments and related practices from October 2021 to September 2024. This investigation adds to existing scrutiny from federal authorities regarding Morgan Stanley's anti-money-laundering protocols. FINRA has sought extensive information about both domestic and international clients within the firm's wealth-management sector and its trading operations. Among the specific details requested by the regulator are records pertaining to politically exposed individuals, which include senior foreign political figures and their close associates, as well as the Morgan Stanley representatives managing these accounts. The investigation is part of a comprehensive review by FINRA, which, while not a governmental body, oversees broker-dealers and has the authority to impose penalties for regulatory breaches. Morgan Stanley has been addressing concerns raised by the Federal Reserve regarding its client-screening processes. The firm has reportedly closed numerous accounts, scaled back its operations in Venezuela and other Latin American countries, and tightened its criteria for accepting new clients. Previous reports have highlighted significant deficiencies in Morgan Stanley's due diligence, particularly in attracting clients from regions associated with financial misconduct and drug trafficking. A document from 2023 indicated that many accounts in its wealth-management division exhibited characteristics associated with money laundering and tax evasion. A spokesperson for Morgan Stanley told the WSJ that the firm has invested heavily in its anti-money-laundering and client-vetting initiatives, which have had a positive impact on its operations. The spokesperson also noted that the ongoing examinations by regulators are standard practice and do not necessarily reflect issues within the firm's business operations. FINRA's investigation is particularly focused on the risk profiles of clients for whom Morgan Stanley has managed or executed trades, including inquiries about clients on its digital trading platform E*Trade, its private banking services, and its institutional securities group. Morgan Stanley has received multiple requests from FINRA for large volumes of data, including recent requests for organisational charts related to its anti-money-laundering and financial-crimes teams. Internal concerns have been raised regarding the completeness of the information provided to FINRA, prompting the firm to submit additional data following feedback from the regulator. In addition to the FINRA investigation, the Justice Department and the Treasury Department's Financial Crimes Enforcement Network are also looking into the bank's anti-money-laundering practices, particularly within its wealth-management division. Some federal investigations have reportedly found that Morgan Stanley retained clients despite clear indications of risk, such as media reports suggesting involvement in illegal activities. On a more positive note, the Federal Reserve has reportedly approved the client identity verification processes of E*Trade and the deposit-taking arms of the digital trading platform. However, the Office of the Comptroller of the Currency has identified that many wealth management accounts lacked sufficient enhanced due diligence. By late last year, Morgan Stanley acknowledged having clients that did not conform to its internal risk-appetite guidelines. As part of the ongoing FINRA investigation, information has also been requested regarding the firm's risk-scoring tool for clients, which was not activated for E*Trade clients until early 2024, following a prior deactivation after the acquisition of the trading platform. "Morgan Stanley under probe for wealth management client vetting issues – report" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
04-07-2025
- Business
- Associated Press
Planning for Succession and Inheritance Taxes in Spain for Expatriate Residents
07/03/2025, Paphos 8035 // PRODIGY: Feature Story // Spain remains one of the most popular destinations for UK expatriates, with an estimated 275,000 British nationals currently living there and a consistent number of families, professionals, and retirees relocating each year. As with any overseas move, expatriates must consider the long-term financial implications of a change in tax residency. This includes those who have been resident in Spain for some time but have yet to review their estate plans and the significant tax burdens that beneficiaries may be exposed to. Chase Buchanan Private Wealth Management, the global financial advisers and wealth managers with a long-established presence in Spain and across Europe, have put together a concise guide to explain why succession planning is so important and why it matters for expats of any age. An Overview of Succession Planning for Expats Living in Spain Succession planning is a key aspect of financial management for every family, but it is also something we often find overlooked, particularly for expatriates who aren't yet approaching retirement age. However, putting plans in place sooner rather than later may be key to long-term generational wealth protection. In brief, succession planning isn't solely about calculating inheritance tax liabilities. It is about who you would like to inherit your assets and wealth in all jurisdictions, and implementing strategies to ensure you can pass on wealth to your selected beneficiaries tax-efficiently. This can be a complex area of financial planning, given that when we start putting together succession plans, we need to consider a broad range of assets and circumstances, from property portfolios and investments to life insurance products and assets. Without a plan, some families find out too late that they have sacrificed control over nominating heirs or are subject to significant tax liabilities they had not planned for. This is wholly relevant for expats in Spain since forced heirship rules apply, something many UK nationals are unfamiliar with, but a set of regulations common in most European countries. These rules set out which direct relatives have a protected inheritance entitlement and also set out specific allowances. Understanding Inheritance Tax Rules and Rates for Spanish Tax Residents As in the UK, Spanish tax residents are usually subject to inheritance tax on their worldwide assets and wealth. That said, complications can arise where the estate owner has any ambiguity about their tax residency position or could be considered a tax resident in two places. Assuming an expat lives primarily or only in Spain, the Spanish inheritance tax rates will apply. The tax is payable by the beneficiary, regardless of whether or not they are also Spanish residents. Double tax treaties may apply, and professional advice is essential to ensure these are applied and claimed correctly. For instance, if the adult child of a Spanish tax resident inherits a property located in the UK, there may be scenarios where this is considered subject to both UK and Spanish tax. In this case, the treaties mean the largest liability will usually 'cancel out' the other to avoid a situation where the same inheritance could be taxed twice. Another complication is that inheritance tax rates vary within Spain. Each localised municipality has autonomy over the allowances and rates it applies. Generally, inheritance tax rates in Spain start at 7.65% for assets valued up to €7,993, with a top rate of 34% on inherited assets worth €797,555 or more. However, regions like Andalucia, Madrid, Murcia, the Canary Islands, and the Balearics, to name just a few, have allowances of as high as 99.9%, which all but eliminate inheritance taxes, depending on the category the recipient falls into, determined by their relationship to the deceased. Familial Inheritance Tax Allowances in Spain While noting that these do not apply in all Spanish jurisdictions, the most generous tax allowances apply to heirs in groups one to three. Group I includes children under 21, Group II applies to adult children, spouses, and parents, and Group III includes siblings, aunts or uncles, cousins, stepchildren, nephews and nieces, and in-laws. Group IV applies to all other beneficiaries, including unmarried partners in some municipalities. This excludes those within a region governed by rules that mean partners are treated the same way for tax purposes as spouses, including Valenciana and Andalucía. This means that the inheritance tax liabilities associated with your estate will depend on who you would like to receive your assets, where you live, the location of your assets, and how your wishes align with the forced heirship rules we mentioned previously. Spanish succession law applies forced heirship rules that generally state that children have a protected entitlement to receive two-thirds of the estate. This means that without advance planning, it might be impossible for a tax resident to leave the entirety of their estate to a spouse. Thus, consulting an experienced succession planning adviser who can factor in all of these considerations is essential, working with a professional who can advise if there are contrasts between the forced heirship rules and how you'd like your estate to be distributed. Why Strategic Succession Planning is Key for Spanish Expatriates Understanding the varied allowances, exemptions, tax liabilities, and the treatment of estates owned by a Spanish tax resident and inherited by an heir outside of Spain is potentially very complex. This is why detailed succession planning and accurate, up-to-date wills that are legally valid in Spain are essential aspects of financial planning. It's also worth pointing out that, under the recently revised residency rules introduced by the UK government, expatriates who divide their time between Spain and the UK or who haven't lived in Spain permanently for at least ten years are more likely to be exposed to challenges around their exposure to UK inheritance tax. Tailored succession planning isn't only focused on calculating accurate inheritance tax obligations, factoring these into finances, and deciding how best to manage an estate; it's also about gaining clarity over long-term financial tax burdens and making informed decisions without time pressures, which can pay dividends in the years to come. Read more about Chase Buchanan- Chase Buchanan Wealth Management Achieves Status as the Only Global Expat-Focused CII International Professional Partner About Chase Buchanan Private Wealth Management Chase Buchanan is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, UK and the Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15. Source published by Submit Press Release >> Planning for Succession and Inheritance Taxes in Spain for Expatriate Residents
Yahoo
02-07-2025
- Business
- Yahoo
Couples warned to ‘keep clear records on source of wealth' following landmark divorce ruling
A retired banker who gave his wife nearly £80 million to avoid paying inheritance tax will not have to split that money with her equally following a divorce, the Supreme Court has ruled. Five justices unanimously agreed that because most of the money had been earned prior to the marriage, Clive Standish, 72, was entitled to keep the largest share. He had transferred the multimillion-pound assets to his wife Anna Standish, 57, in 2017, to take advantage of the Australian's non-dom status and allow more money to benefit their two children. Mr Standish, being domiciled in the UK, was worried about paying around £32 million in inheritance tax if he died with the assets in his name, Lords Burrows and Stephens explained in their ruling on Wednesday. Sam Longworth of Hudson Sandler and the lead partner for Mr Standish said: 'The Supreme Court has also provided essential guidance as to when assets which do not have an originating connection to the marriage partnership should be considered marital. 'This guidance will give the courts a clear framework to ensure individuals cannot benefit from running false arguments as to whether they had or had not agreed to share certain assets during the currency of their relationship.' Claire Reid, a partner at Hall Brown Family Law, said the ruling was more 'goalposts being moved' than a 'paradigm shift', adding that other spouses 'looking to manage their wealth to minimise their tax bills' should be 'very circumspect in how they do so'. She said: 'Given the recent changes to the inheritance tax rules announced by the Government, there are likely to be many individuals undertaking the kind of estate planning that Mr and Mrs Standish were. 'Wealthier spouses will now be alive to the need to formalise the terms of any transfers of cash or other assets even more clearly to avoid falling into the same complicated situation.' Sarah Norman-Scott and Victoria Walker, family law partners at Hodge Jones & Allen and Moore Barlow respectively, said couples should keep clear records on the source of their wealth. Ms Walker said: 'Going forward, families will need to keep tighter records to demonstrate that transfers were executed for specific purposes. 'That said, if spouses cannot meet their respective needs from the pool of available assets, the court will still draw on non-matrimonial funds to ensure fairness. 'However, for high value separations where plenty of wealth is available, Standish delivers a clear message: intent is everything.' Yael Selig, a family law partner at Osbornes Law, predicts a 'a surge' in prenuptial and postnuptial inquiries following the Supreme Court's decision. She said: 'Whilst such agreements are not yet considered the norm, they are becoming that way and particularly for couples where there are significant assets involved, although the court's decision will always be grounded in making sure that the financial needs of both parties are met.' Lucy Stweart-Gould, second partner for Mr Standish at Hudson Sandler, said owning money or assets at the time of the divorce, known as having title, is not enough to claim ownership; what matters is how that property is intended to be used. She said: 'Title alone is insufficient evidence to permit a party to share in a non-marital asset. 'What is required is an intention to share and treatment of the asset as shared; on the proper analysis of the facts of this case there was neither.' Jennifer Dickson, family law partner at Withers, agreed. She said: 'The judgment makes clear that non-matrimonial property should not be subject to the sharing principle and matrimonial property should ordinarily be shared 50/50, but that non-matrimonial property can be 'matrimonialised' depending on the couple's intention and treatment of that wealth during the marriage. 'Had the tax planning exercise been designed to benefit Mrs Standish, rather than their children, it may well have been a different story.'
The Independent
02-07-2025
- Business
- The Independent
Couples warned to ‘keep clear records on source of wealth' following landmark divorce ruling
A retired banker who gave his wife nearly £80 million to avoid paying inheritance tax will not have to split that money with her equally following a divorce, the Supreme Court has ruled. Five justices unanimously agreed that because most of the money had been earned prior to the marriage, Clive Standish, 72, was entitled to keep the largest share. He had transferred the multimillion-pound assets to his wife Anna Standish, 57, in 2017, to take advantage of the Australian's non-dom status and allow more money to benefit their two children. Mr Standish, being domiciled in the UK, was worried about paying around £32 million in inheritance tax if he died with the assets in his name, Lords Burrows and Stephens explained in their ruling on Wednesday. Sam Longworth of Hudson Sandler and the lead partner for Mr Standish said: 'The Supreme Court has also provided essential guidance as to when assets which do not have an originating connection to the marriage partnership should be considered marital. 'This guidance will give the courts a clear framework to ensure individuals cannot benefit from running false arguments as to whether they had or had not agreed to share certain assets during the currency of their relationship.' Claire Reid, a partner at Hall Brown Family Law, said the ruling was more 'goalposts being moved' than a 'paradigm shift', adding that other spouses 'looking to manage their wealth to minimise their tax bills' should be 'very circumspect in how they do so'. She said: 'Given the recent changes to the inheritance tax rules announced by the Government, there are likely to be many individuals undertaking the kind of estate planning that Mr and Mrs Standish were. 'Wealthier spouses will now be alive to the need to formalise the terms of any transfers of cash or other assets even more clearly to avoid falling into the same complicated situation.' Sarah Norman-Scott and Victoria Walker, family law partners at Hodge Jones & Allen and Moore Barlow respectively, said couples should keep clear records on the source of their wealth. Ms Walker said: 'Going forward, families will need to keep tighter records to demonstrate that transfers were executed for specific purposes. 'That said, if spouses cannot meet their respective needs from the pool of available assets, the court will still draw on non-matrimonial funds to ensure fairness. 'However, for high value separations where plenty of wealth is available, Standish delivers a clear message: intent is everything.' Yael Selig, a family law partner at Osbornes Law, predicts a 'a surge' in prenuptial and postnuptial inquiries following the Supreme Court's decision. She said: 'Whilst such agreements are not yet considered the norm, they are becoming that way and particularly for couples where there are significant assets involved, although the court's decision will always be grounded in making sure that the financial needs of both parties are met.' Lucy Stweart-Gould, second partner for Mr Standish at Hudson Sandler, said owning money or assets at the time of the divorce, known as having title, is not enough to claim ownership; what matters is how that property is intended to be used. She said: 'Title alone is insufficient evidence to permit a party to share in a non-marital asset. 'What is required is an intention to share and treatment of the asset as shared; on the proper analysis of the facts of this case there was neither.' Jennifer Dickson, family law partner at Withers, agreed. She said: 'The judgment makes clear that non-matrimonial property should not be subject to the sharing principle and matrimonial property should ordinarily be shared 50/50, but that non-matrimonial property can be 'matrimonialised' depending on the couple's intention and treatment of that wealth during the marriage. 'Had the tax planning exercise been designed to benefit Mrs Standish, rather than their children, it may well have been a different story.'
Bloomberg
01-07-2025
- Business
- Bloomberg
Odd Lots: Robinhood's CEO on the Plan to Tokenize Everything
Robinhood, the company known for first introducing commission-free trading, has now become a behemoth with all kinds of different business lines including credit cards, savings vehicles, crypto, and wealth management. This week it's announced further expansion with news that it's launching its own chain, as well as tokenized stock trading (that for now is only available in the EU). On this episode, we speak with founder and CEO, Vlad Tenev, about its new endeavors, as well as the legacy of the 2021 meme stock mania, the evolution of the YOLO traders, the changing regulatory environment, and when we can expect to have 24/7 on-chain stock trading in the US.
