How risky is your US business?
Serving the United States market requires both understanding of US tax laws and compliance with US regulatory requirements. The risks of operating without this knowledge or proper compliance procedures are both business risks (i.e., satisfying client requirements) and legal/regulatory (including civil and criminal liability in certain cases). If your organization provides services to US clients, ask yourself the following questions to measure your risks relating to serving this market segment. Ultimately, however, a proper assessment of your specific business situation would require a one-to-one discussion:
US Tax law Risks
Is your client a US citizen according to US tax law?
Does your client have family ties to the USA?
Has your client invested in a US business?
Does your client have a second home in the USA?
In the past, have all earnings been declared properly as required by US tax law?
Has your client submitted the necessary tax and regulatory forms?
Does your client’s portfolio include PFICs (Passive Foreign Investment Companies)?
If structures (trusts, foundations, etc.) have been used for succession and tax planning, has proper account been taken of the client’s current situation and has an analysis been performed as to whether these structures are tax efficient?
Do you know how US tax law treats different types of investment instrument?
Regulatory law (SEC)
- Do you offer asset management services for residents of the US?
- Do you communicate with your clients in the USA about their financial investments (by e-mail, fax, telephone, post)?
- Do you visit your clients in the United States?
- Do you use asset management products that are not allowed for US citizens?
- Do you purchase and sell securities for US residents?
If the answer to any of the above questions is yes, you should operate with an understanding of the tax and regulatory consequences for you and your clients.
Kaiser Partner Financial Advisors specializes in the provision of wealth management services for US clients; it is registered with the SEC in the USA as an investment adviser. Our specialist expertise and our business processes are shaped by legal requirements and client needs in the US market. We can help organizations in Switzerland service US clients in a variety of ways and can act as a knowledge resource to your organization.
