I often hold consultations with people to whom starting their own bank is the best option in their own individual circumstances and makes the perfect personal, investment and business sense.
There are three scenarios when starting your own bank makes financial sense:
1. Banking arrangements are no longer available for your wealth structure in the tax haven of your choice
Some of the tax havens and more fundamentally, the fiduciary industry is experiencing a lot of difficulties in starting and maintaining their banking arrangements.
Fiduciary structures do not work, unless these arrangements have banking relationships and suitable bank accounts and banking services necessary for these structures to function.
As the banking industry is tightening and the legal and regulatory framework is placing even more demands on the financial sector, some major banks chose to abandon this service offering completely.
Over the last couple of years several jurisdictions saw mainstream international banks exiting the industry altogether and abandoning the islands in question.
In the absence of the right banking relationships, the wealth structures became effectively redundant.
2. You want to start a bank as a business
You always wanted to start your own bank. It was your greatest and vision all along. If this is the case, then you will have to carefully consider what type of banking you prefer: high street, corporate, commercial, investment or private banking.
Your choices will be narrowed down as to exactly what you want your bank to do and which area of activity you find the most profitable or exciting.
3. You have substantial wealth and do not want to rely on the third party banks in order to manage your wealth
There is hardly a better solution to manage your own wealth by establishing your own bank. It gives you the privacy you require and an opportunity to manage your wealth on your terms.
This is one of the best ways to reduce your third party risks, which as we have all experienced in the last couple of years can be seriously detrimental.
Exploring your options as you are looking to start your own bank; book a consultation with me.
I specialise in tax, wealth management of ultra high net worth individuals’ assets and legal requirements for high net worth families, my sole purpose is to help you establish and set up a working investment vehicle or a bank.
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Saule Voluckyte, M.A.E.S, LL.B, FAIA
I have been working exclusively with UHNWI in Mayfair, London since January 2008. I built specialist knowledge and expertise required to serve ultra high net worth individuals investing, operating and relocating to the UK or Switzerland.
Within the industry, I am the single adviser who is able to traverse the different areas of expertise and bring a comprehensive approach across: global structuring, UK immigration, international taxation and FOREX to develop their global wealth strategy, while they build, grow and expand their wealth worldwide.
Previous experience as one of the senior advisors for the government, made me a go-to person when delicate and uncomfortable scenarios involving heads of state need to be handled with care and preserve privacy.