Unforeseen government policy shifts can disrupt even the most meticulously crafted investment strategies. This is a major concern for affluent investors, as these policies, while intended to promote a stable financial environment, can have a complex impact on individual investment plans.
Further complicating matters, the financial environment in Nigeria is constantly changing due to shifting economic and regulatory conditions that influence financial activities. These include ever-changing foreign exchange policies and evolving Know-Your-Customer (KYC) legislation, adding layers of complexity or confusion.
For High-Net-Worth Individuals (HNWIs) and Politically Exposed Persons (PEPs), navigating the intricacies of wealth management regulations can be particularly challenging. Given the complexity of the regulatory landscape, would a competent wealth manager be valuable in helping you achieve your financial goals?
- Do not get lost in the Regulatory Maze
Wealth managers possess the expertise to understand and comply with government policies concerning wealth creation, taxation, and succession planning. They can help you navigate regulatory hurdles and even turn policies into opportunities. For example, special tax breaks and exemptions exist for certain sectors and investments.
As a case study, Nigeria offers tax benefits for export-oriented businesses through Export Processing Zones (EPZs) and Free Trade Zones (FTZs) with tax exemptions and relaxed foreign exchange controls. Additionally, companies outside these zones can enjoy a three-year tax holiday if fully export-oriented.
- Make Investments Beyond Borders
HNWIs often have portfolios spanning across borders, requiring adaptive strategies that align with diverse regulatory frameworks. Accredited wealth managers can ensure adherence to these diverse regulatory frameworks across territories. Just as the Securities and Exchange Commission (SEC) regulates the Nigerian capital market, so do other countries have their own regulatory bodies with unique structures and consequences for non-compliance.
- Enjoy Access to the Best Wealth Management Tools
To ensure seamless compliance across borders, these advisors leverage their extensive network to collaborate with tax consultants, risk mitigation experts, and other specialists. This comprehensive approach optimizes your wealth management practices. In practice, an advisor could bridge the gap and provide the investment guidance you need in any country of your choice.
- Be One Step Ahead of Market Volatility
In volatile markets, wealth managers leverage their up-to-date market intelligence and robust risk mitigation strategies to guide your investment decisions. This ensures your portfolio remains protected even during economic fluctuations, giving you peace of mind. But achieving financial security goes beyond short-term market movements.
- Innovative Solutions to Monitor Policy Changes
Peace of mind also comes from navigating the ever-changing regulatory landscape. Regulatory technology (RegTech) is playing an increasingly important role in this area. These tools empower more people to access and navigate complex policy or multi-jurisdictional technology-driven environments.
- Beyond Compliance, Investing with Impact
Wealth managers go beyond just ensuring compliance. They understand the growing desire for Socially Responsible Investments (SRI) that align with your values. By offering SRI options and advocating for sustainable practices, wealth managers contribute to a more equitable and transparent financial system.
In today’s dynamic global assets management, a competent and accredited wealth manager is an invaluable partner. They ensure compliance with ever-evolving regulations, and also foster sustainable growth within your portfolio, aligning your financial goals with your values.
Speak to a Private Banker today
Contact us: pbg@coronationmb.com,
www.coronationmb.com,
02012797640, 02012797641
Ifeyinwa Uwefoh
Group Head, Private Banking
