HSBC International deals with hundreds of enquiries a week, here are some of the most frequently asked questions with some answers.
1. What exactly is offshore investing?
In the financial sense, ‘offshore’ means a jurisdiction other than the one in which you live. Established offshore centres such as Jersey, Guernsey and the Isle of Man have laws which may offer financial benefits when you bank and invest with them.
These laws currently range from no or low-tax liability locally (on all savings and investment income regardless of the residence of the investor) – to local tax exemptions for non-residents of that jurisdiction.
2. What are the benefits of investing offshore?
If you’re living and working overseas, investing offshore may save you tax. All returns on offshore investments are currently paid without the deduction of tax.
You may also be able to reduce your tax liability in your home country by transferring savings and investments to an offshore bank. In addition to the tax savings, offshore banking offers confidentiality, security and global access and convenience.
3. Who can benefit from offshore investing?
Anyone living and working overseas for at least one full tax year may be able to save tax by investing offshore.
4. So, if I have to pay taxes, what is the advantage of investing offshore?
There are many other reasons to invest offshore, over and above the tax benefits.
Besides providing a legitimate way to minimise your tax liability, other important reasons to consider investing and banking offshore include asset protection, estate planning, confidentiality, and potentially good returns.
5. If I ‘m unsure which offshore investment may be best for me, can I talk to someone?
Yes! Simply click on the Call Me button on the website address below and fill in the Call Me form with your contact details. We’ll give you a ring within one working day.
And don’t forget, our advisers can offer help & guidance on everything from investments to life cover, including saving for the future, estate planning, mortgage protection, retirement & estate planning.
6. Does HSBC sell investments offered by other reputable companies?
Yes we do. Our investment advisers are able to offer you a choice of investments from a wide range of well-established and reputable companies.
We aim to ensure that any investment we recommend meets your requirements in terms of investment performance, financial stability and service.
Just click on the website’s Call Me button and fill in the Call Me form with your contact details. We’ll give you a ring within one working day.
7. Is it easy to invest with HSBC?
We try to make it as easy as possible! Once you have decided which fund you want to invest in, all you need to do is complete an application form and send it to us by post together with your payment.
You can either download an application form for your chosen fund from our website or you can ask us to send you a brochure and application form by post if you prefer.
If you need any help in completing an application form, or you have a query about any of our funds, just send us an e-mail. Alternatively, call us 24 hours a day on +44 1534 616 111.
8. What is the minimum amount I have to place offshore to make it worth my while?
This depends on the type of account or investment you wish to apply for. Our Offshore Bank Account is usually the first account people open with us as it offers savings account rates along with all the facilities of a current account – the minimum balance for this account is £/US$/€5,000.
Lump sum investments in our HSBC offshore funds can also be made from just £/US$/€5,000. However, if you prefer you can make regular investments into an investment plan from just £/ US$/€250 a month.
9. What charges will I have to pay if I invest in an HSBC offshore fund?
There is an initial charge for all new investments. This is reflected in the difference between the offer price at which you buy shares and the bid price at which you can sell.
The difference between the offer and bid prices is commonly referred to as the ‘bid – offer spread’.
The initial charge for each of our funds is as follows:
US Index Fund – 1% (for investments via our web site)
Sterling Income Fund – 3%
Freedom sub-funds – 5.25%
International Select Fund – 5.25%
Capital Secured Growth Funds – the charges are contained within the brochure published for each launch.
There is also an annual management charge to cover investment management and administration costs. This fee is calculated on a daily basis and deducted from the capital value of the fund.
The annual management charge levied varies between different funds and fund classes. Details of the annual management charge for each fund are contained in the fund brochure and prospectus.
10. Rather than making a lump sum investment, could I make regular smaller investments into an investment plan?
Absolutely. It’s up to you how you invest. If you want, you can build up your investments through a series of small, regular monthly payments that over time, can accrue into a substantial investment.
Contributions can be made direct from your account by standing order, eliminating unnecessary administration on your part.
11. Can I use the Internet to view my offshore accounts and investments online?
Yes, you can. HSBC offers customers an Internet Banking service that is convenient and easily accessible from anywhere in the world. You can use it to view all your account details and the latest value of your HSBC investments.
You can also give instructions to top up, sell or switch many of your investments without the need to complete any time consuming paperwork.
12. If I decide to invest in an HSBC offshore fund how will I be able to monitor the price of the investment?
You’ll find the latest share prices on this web site. We’ll also send you an update about the performance of your investment every six months.
If you are an Internet Banking customer you can monitor the value of your investments online.
Source: www.offshore.hsbc.com
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