On September 29th, members and guests of the French-American Chamber of Commerce gathered at member company HSBC for a Wealth Management Update for the International Professional.

Opening the discussion, Marlene Regalado, Vice President & Relationship Manager, Premier Corporate & Professional Services, HSBC, offered an overview of HSBC, one of the largest banking and financial services organizations in the world, present in 85 countries and territories. She also introduced the panel of experts.

Moderator Renee Caputi, Vice-President, Premier International Wealth Manager, HSBC Securities USA, provided an outline of the issues and explained that every angle of wealth management - tax, legal, insurance and financial – must matter to the international professional.

Discussing worldwide taxation for U.S. and foreign citizens, Christopher Hall, Senior Manager, Deloitte Tax LLP, emphasized that tax issues are “first and foremost for [wealth] planning.” He also explored U.S./foreign differences in tax investments, foreign pensions, and foreign mutual funds. Mr. Hall closed with some remarks on global mobility, and highlighted the need to consider all tax-related factors prior to a move, including employment, contracts, immigration, pensions, and banking concerns. The most advisable, he stated, is to first consult with legal and accounting experts.

Daniel Rubin, Partner, Trusts, Estate & Wealth Preservation Practice, Moses & Singer, explored the many legal considerations that surround wealth management in the United States. Providing an overview of U.S. estate, gift and income taxes, Mr. Rubin explained the benefits of being a U.S. citizen, and the important factors that impact foreign citizens. Mr. Rubin strongly advised attendees to “make a plan” and have a valid will, credit shelters, foreign trusts, and life insurance.

Turing to life insurance, Eric Thoby, U.S. General Manager, Crystal Finance, explained the concept of French assurance-vie, and how it differs from U.S. life insurance. He discussed the benefits of assurance-vie for French expatriates planning to return to Europe, which include no taxes on beneficiaries in case of death and lower taxes on capital gain if the insurance has been detained for over eight years. He closed by explaining the Luxembourg Life Insurance system, which is beneficial to foreign citizens managing their assets. This European law allows citizens to benefit from the French tax system upon return to France.

James Curtin, Vice President, Senior Financial Advisor, HSBC Securities, offered the financial angle to these complex issues. Exploring the current state of today’s volatile market, Mr. Curtin suggested that the U.S. dollar will remain weak for a while, as will the euro and the sterling. He recommended financial bonds based out of Latin America, especially Brazil. Stating that “you cannot go wrong with minerals”, he also recommended investments in gold, copper and zinc.

Market-Link Structured products have become an important tool in helping individuals protect their principal while still having access to Equity markets in challenging times. Mr. Curtin reviewed products offered by HSBC, including but not limited to S&P 500 Market-Linked Certificates of Deposit. These CD's offer the potential for market rate returns without the downside of principal exposure, when held to maturity, and are FDIC insured. According to Mr. Curtin, HSBC Market-Linked CD's also offer clients access to a wide range of markets, including U.S. and international equities, commodities, and foreign exchange.

An informative question-and-answer session with the experts concluded the event. The FACC thanks its member HSBC Bank USA for very generously sponsoring and hosting the event.