Offshore Private Banking

Written by Michael Federico
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Offshore private banking continues to draw the wealthiest individuals and companies away from traditional onshore banks. Offshore banks woo potential clients with tax breaks, adjusted interest rates, and security measures that far exceed the measures in place in most onshore banks. But it is the private banking aspect of these offshore institutions that distinguish them from their competitors.

Offshore private banking begins with the appointment of a private bank manager to each client. The relationship between the private bank manager and his customer is cultivated over time, and it is this relationship that keeps many clients loyal to a single offshore bank. If you are careful when you select your bank, you can have a long-lasting relationship with your investment professionals.

The Private Bank Manager's Role in Offshore Private Banking

In most offshore banks, private bank managers are reserved for the wealthiest of clients. Once that client decides to work with a particular offshore institution, a private bank manager will develop a way of working that suits the specific needs of the client. He will offer advice, develop financial goals for the client, and determine what needs to be done to reach those goals. Over time, the private bank manager can play the role of financial advisor, leading his client towards particular funds and investment options.

This aspect of offshore private banking does come with a modicum of risk. Private bank managers, like most financial advisors, are not always objective in their investment advice. Often, those who have jurisdiction over the bank can influence that bank's investment philosophy. For this reason it is crucial that a client deal only with a stable bank and with a private bank manager who is willing to make the client's goals his own.

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