personal financial management

AXIS provides financial advice to international investors worldwide. Our advice is totally independent, and is reflected in the number of various international institutions with whom we hold agencies.   Our sole aim is to provide a comprehensive, professionally packaged solution to satisfy the diverse requirements of international investors.

portfolio managed service

A tailored portfolio management service, the portfolio may include stocks, shares or fixed interest securities quoted on the major stock exchanges. Many of our security transactions are carried out on beneficial terms with investment houses worldwide. We also obtain competitive prices and stock broking commissions on purchases, with substantial discounts on unit trusts, both onshore and offshore.

unit trusts/mutual funds

A wide range of funds is available to clients, providing access to some of the world's leading investment specialists with consistent records of sound investment performance. In addition, 'Guaranteed Profits Funds' protect client investments against falls in the markets.

managed currency funds

Given the cyclical effects often felt by the equity and bond markets, a managed currency fund service serves those clients preferring a diversified portfolio.

medical care wherever you are in the world

You need the peace of mind that comes from knowing you'll be well covered for your medical needs, anywhere in the world, on holiday, on business or at home. And it is only natural that you should want the very best care available, at a hospital you've chosen. We work together with Bupa International who can offer you reassurance wherever you are in the world. For further information, read our A-Z guide to buying personal health insurance.

expatriate house purchasing service

Expatriates considering buying property abroad benefit from access to our international banking arrangements. With particular reference to France, our service for expatriate house purchase is designed to make this complicated process as easy and straightforward for clients as possible.

retirement programmes

A wide range of retirement plans allow clients to invest over the medium and long term in top performing international funds. These programmes are fully portable, flexible in the choice of funds and thus ideal for highly-mobile expatriates and professionals. A comprehensive guide to international retirement plans is discussed in our article solutions to the pension problem.

asset protection

We provide Estate Planning and Asset Protection services in the form of trusts and life assurance products to safeguard your financial future.

the A-Z guide to buying private health insurance

Everyone should have health insurance, but finding the right coverage can be a painstaking task. In this article we guide you through the various policy types and their pitfalls.

you should be thinking about private health insurance

if:

• you're not covered by group health insurance
• you're covered by a national health system or some other universal health system
• you'd like to have the option of private care where you currently live
• you'd like to be able to go for treatment for a specific problem to another country.

the basic features of private insurance

Private health insurance policies generally offer one or two major levels of coverage:

• a comprehensive coverage, including in-hospital care and services as well as the services of doctors, lab tests, x-rays and other scans, etc. in a non-hospital setting
• a basic coverage which is limited to all care and services relating to an in-patient hospital stay only.

The common variables within these policies are various limits on reimbursement; a choice of deductibles; and any differences or limitations based on where the care is provided.

But beyond this, there may be some traps waiting for you unless you look carefully at what is offered.

applying for a policy

As the name suggests, it's easy to get coverage from guaranteed-issue policies - just answer a few easy questions and pay your premium. Beware though, when you submit a claim, you may be asked for proof that the problem you just treated wasn't a "pre-existing condition" at the time you applied for the policy.

A pre-existing condition generally means a medical condition, which is currently being (or was previously) treated and any condition associated with it.

Just for clarification, "treated" means:

• doctor's visits, tests, taking medication, or even a special diet for that condition within the past one year, two years, five years, or anytime in the past (each policy has its own time frame)
• a condition which a "prudent person" would have had treated, even if you didn't, or, in some policies, even if you didn't know about it but they feel you should have.

"Any condition associated with it" means a medical problem that they deem to be an outgrowth or result of the original pre-existing condition. For example, a broken leg could be deemed to be the result of brittle bones caused by cancer treatments.

If the insurer decides it is a pre-existing condition, they may deny the claim. Always remember, the larger the claim the more carefully they're going to examine it. Which is not what you want to go through when you have just incurred a claim for $10,000.

Fully-underwritten policies ask very detailed health questions on the application form and may even ask for doctors' reports. Based on all the information they receive, the insurance company may decide to:

• accept you with no exclusions or conditions
• accept you with an increased premium
• accept you with an exclusion for a specific medical condition
• reject you.

It always makes good sense to disclose pre-existing conditions on your application form even if the application doesn't ask about them. Then, the insurance company will find it harder to deny a claim for a pre-existing condition if they didn't exclude it when they approved your application.

your age

Some insurers automatically reduce benefits, charge extra premiums, or even discontinue your coverage when you reach a specific age.

For example, at 60, 65, or 70, the maximum annual limit under the policy drops from $1 million to $100,000 or they may add 25 percent extra to the premium.

policy exclusions

travel

Some policies exclude travel if it's specifically to get medical care. Others exclude care if you travel "against the advice of a physician" or "while you are on a waiting list for treatment". In that case, treatment for that specific condition may not be covered while you're traveling.

pregnancy and childbirth

Some policies exclude pregnancy and childbirth completely while others exclude them only for the first 12 months of the policy. Even if the pregnancy and birth are covered, some policies automatically exclude the first 15 days of a newborn's life - while others cover only the first 14 days of life. In these cases, the baby must then apply as a separate person. Because many policies exclude birth defects, and congenital and hereditary illnesses, that baby may be refused coverage. Such policies may not be appropriate if you're in the childbearing years - take a long, hard look and ask questions before you sign up for such a policy.

chronic illnesses

Some policies specifically exclude or limit the coverage of conditions which are, or become chronic, after you purchase the policy. An asthma attack (acute) may be covered but not ongoing asthma problems (chronic).

limited coverage

Some policies limit coverage for any single accident or illness to, for example, the first 12 months of treatment following the onset of that accident or illness.

organ transplants

Some policies exclude such procedures, some offer it as an additional benefit, and some include it as a part of the regular coverage.

where you are

Some policies place no limitations on where you can go for care while others limit the region of the world where they will cover you (and may charge different premiums based on the region(s) you select).

home country

Some policies limit the time you can spend in your home country or even exclude it completely. For example, travel to and in the US may be limited to 30 or 60 days for US citizens or anyone born there regardless of their current citizenship or residency. This could apply even if you go for a short visit and then, because of an illness or accident, need to stay longer. The policy may be cancelled or suspended when you reach that maximum time limit, regardless of your health condition at the time.

getting claims paid

pre-certification

Many policies now require you to get prior approval for a planned hospitalization, with a penalty of reduced benefits if you don't. They may be more lenient with emergencies but still require notification as soon as possible after the emergency. Some may also limit the choice of hospitals or doctors you can use. Even if you don't need pre-approval, informing an insurer before a hospitalization is a good idea since they can usually pay the hospital directly for your stay.

non-hospital bills

In most cases, you must pay physicians, labs, etc out of pocket and then submit those bills with proof of payment.

submitting claims

Some policies require a completed claim form - others, just the original bill. In almost all cases, you should get the bill in English or supply an English translation - it tends to smooth the path to reimbursement.

emergency help

Almost all policies offer the services of an International Help Centre, 24 hours a day, seven days a week. The Centre can refer you to an English-speaking doctor and/or hospital and/or assist in the event of an emergency requiring medical evacuation. This is obviously more useful when you are in a non English-speaking area, but you can use it wherever you are in the world.

medical evacuation

This is a useful feature if you're in a country/region with a healthcare system which is below par. But, be aware that no policy offers evacuation just because you would prefer it. If the emergency can't be treated locally, you will be evacuated to the nearest major facility capable of providing a decent standard of care. The definition of 'nearest' and 'decent' are decided jointly by the Emergency Help Centre and the insurance company.

paying premiums

Premiums are normally payable for each person in a family, although some policies do offer a family premium. Others offer free coverage to pre-teen dependent children if one parent is covered.

Premiums may vary based on where you live or where you want to have treatment, and may increase with attained age. Payment is usually by cheque or credit card and may offer a choice of currencies for premiums and reimbursements.

renewing coverage

Guaranteed renewability of an insurance policy is fundamental to the selection of that policy.

If there is no guarantee to renew coverage regardless of your health condition at the renewal date, beware. Cancellation of coverage is not what you need if you have developed a medical condition which would be deemed pre-existing if you have to apply for another policy.

solutions to the pension problem

wouldn't it be great if you could keep your pension from one job in the EU to the next, thus reducing the risk of any break in your retirement planning?

In the past two to three decades the so-called 'demographic time bomb' has been ticking throughout the developed world. The average age of the population has steadily increased, putting state social security systems under intolerable strain as the post-war baby boom generation leaves the workforce.

Expatriates can no longer rely upon the European state systems, which appear to be heading for financial paralysis in the absence of pension reform. This article explores the problems facing the expatriate community in relation to pensions and proposes a solution.

the European pension dilemma

As an expatriate, saving for retirement isn't a straightforward task - taxation regimes are not geared up for people who move around the globe.

Expatriates who have been paying into a pension fund back home often come in for a shock when they move overseas. Suddenly they have to stop making contributions - or find themselves in the middle of a taxation minefield.

The ideal solution would be to find a pension fund they can take with them. But hopes of a global pension scheme being established seem slim. The massively varying business procedures, mentalities and uncompromising legislation throughout the world make such a project an enormous task.

In Europe much of the blame lies with the governments and tax authorities of each country. Treasury chiefs are reluctant to harmonize taxation rules and extend the kind of tax breaks to expatriates that residents at home receive because each country has its own agenda, serving its own interests rather than those of the EU as a whole.

Nation states' failure to fulfill their duties as members of the European Union and abide by laws to which they have already agreed is leaving many expatriates without proper provision for their retirement.

An EC directive allowing private European companies to offer cross-border pensions is in place, but progress is slow particularly from a tax legislation point of view. Pilot schemes in the Netherlands and Luxembourg operating on the notion of a Europe-based pension scheme have had some limited success.

But there is still not an internationally known, trusted and usable model to serve as a prototype for a scheme that would allow country-hopping expatriates to pool funds into one pension plan.

why expatriates face pension problems

The difficulty can be found in the word "expatriate" - someone who has left their country of origin.

While in a foreign country, the expatriate is not automatically officially entitled to the same status or similar benefits as a native. They are, however, still subject to its laws.

This problem gets even worse because many expatriates live and work in several different countries over a period of time. More often than not they don't know when exactly they will be going back home.

In this case, it is difficult for expatriates to continue to keep authorities in their home countries happy by ensuring their papers are in order. After all, it's often unclear just to whom they should pay tax.

do expatriates need a pension plan?

We can now look forward to the prospect of a longer life span in retirement as a result of improvements in diet, medicine and lifestyle, which is why many expatriates in Europe are anxious that there's no readily available pension product in which we can invest.

Europe doesn't need a community of perplexed expatriates who, when faced with pension insecurity, end up in a taxation minefield or, worse still, decide it's better to go home.

To increase in strength, the continent's economy needs to encourage these highly capable, culturally aware and often multilingual workers - an estimated 10 to 12 million of them, according to Eurostat. After all, expatriates are some of the most important cogs in the European engine.

so, how can I save for retirement?

What is required is a portable and flexible retirement fund structured to fulfill the needs of the upwardly mobile expatriates who would like to have their pension savings with them as they move country.

Conceptually, if every country levies tax on a pension fund (or indeed any fund which can later be invested as a pension fund) to some degree, then taxation is unavoidable.

Therefore, were the expatriates to pool all funds into one area (which would provide them with a sophisticated international credit or debit card allowing them to access funds from an ATM in any country) then they would avoid multiple taxation and experience no bureaucratic procedures.

Push this concept a stage further and before long it makes perfect sense to suggest that if I, the expatriates, am going to have to pay tax, I may as well pay the lowest rate going.

And, as I am going to be traveling anyway and therefore not able to be in the same place as my pension savings (as it would risk multiple taxation and an administrative nightmare), it does not really make any difference if my funds are based in my home country or round the other side of the world, especially if these funds are offering low or even tax-free savings schemes.

why international private pensions can be the answer

Welcome to the world of international / offshore investment, where it is possible to invest in tax-privileged funds across a wide range of international sectors.

The offshore industry developed in the 1970s as UK-based fund management firms established non-domestic fund management subsidiaries, originally aimed at expatriate non-tax paying investors.

Today, offshore investment has become big business even in Europe, with countries such as Switzerland (famous for its secretive banking practices), Luxembourg (specializing in low-tax schemes for fixed income funds) and the Republic of Ireland (serving as a centre for equity funds) taking part.

Expatriates are in the fortunate position of being able to take advantage of low-tax or tax-free offshore investments. There are many good international products available, some of which will help you save for your retirement in a tax-efficient way.

However international / offshore investment isn’t straight forward; without the help of a good financial adviser, it's difficult to know what to do!

buying property in France

Property purchase is probably the single biggest investment undertaken by most individuals.

Once you have found the home of your choice, the first step is to appoint a notaire (a publicly appointed legal official) who will take care of all the legal formalities relating to the property, ensuring that the sale is correctly transacted.

the initial agreement

Buying a house in France involves two contracts. Once the sale price has been agreed upon between vendor and buyer, the preliminary sales contract, the Compromis de Vente, is drawn up by the estate agent. The contract should be checked by the notaire to ensure that all the property details are accurate.

The notaire is unlike most European solicitors/lawyers as he is not appointed to act for either party in the transaction but as a public official whose duty is to the State. His function is to ensure that the transaction is carried out legally and accurately and in accordance with the proper processes and to give the transaction absolute validity that cannot be contested.

Having signed the initial purchase contract, you will be required to deposit a sum of money, usually 10% of the asking price which remains 'blocked' in a special account at the notaire's office until such time as completion takes place or the purchase is aborted. This document then becomes legally binding in that failure by you to proceed will mean that your deposit could be forfeited. At this stage the property is taken off the market

An alternative approach is the use of a contract known as a Promesse de Vente, which allows the borrower a time limit (usually 3 months) during which he has to confirm the option to purchase. By signing it the vendor commits himself to selling the property to the purchaser, however this commitment takes the form of a promise not to sell it to anyone else within a stated 3 month period. A deposit of between 5% and 10% is paid and once again the buyer risks forfeiting the deposit if the purchase does not go ahead.

the structural survey

Surveys of the condition of the property you intend to purchase by professional surveyors or 'experts' are unusual in France. It is more usual to request local artisans to give an opinion as to the condition of say the roof, or the walls and for them to give quotations for the work.

French buyers would be more likely to approach an architect or 'expert' but even then it is unusual for them to be asked to prepare a detailed report as has become de rigeur in certain European countries.

It is certainly prudent to carry out all this investigative work before signing the compromis as once this agreement has been reached - as mentioned above - it is binding on both parties.

completion of the purchase

Once the compromis has been signed there follows a period of generally 6 - 8 weeks in which 'searches' are carried out to ensure that the property is not subject to any imminent environmental changes and during which time the buyer is required to resolve the financing of the purchase. These searches and the other contractual matters are carried out by the notaire.

If the buyer intends to take out a mortgage then it is necessary for this to be declared at the time of the agreement. A substantive clause in the compromis will thus protect the purchaser's interests should the loan not be granted by the lender. In this event, the sale does not proceed and the deposit is returned. In the event of the discovery of a 'planned nuisance' through the searches, the buyer can withdraw and the deposit is returned.

Should, however, the buyer break the contract, the deposit is paid to the vendor as an indemnity - conversely, should the vendor break the contract, the deposit is returned to the purchaser.

At the end of this period, which can be extended at the agreement of both parties, the final contract, the Acte de Vente is signed at the notaire's office. The property passes to the buyer, who must pay the balance of the purchase price to the notaire who thereafter pays the vendor.

The buyer does not have to be present at this stage - the notaire can draw up a 'power of attorney' so that a second person can sign on the buyers behalf.

fees and commissions

The buyer pays the legal fees and registration taxes which include land registry charges and stamp duty. As a rough guideline, expect to pay approximately 10% of the purchase price in the form of additional fees.

financing options

Mortgages can be arranged via French or English banks.

Abbey National is now the leading specialist mortgage lender in France for expatriate home buyers. They currently offer 85% mortgages for French residents and mortgage terms of between 7-20 years.

Borrowing rates at present are between 3.4 - 3.8% depending on the initial amount borrowed.

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