Mr B, a higher rate tax payer, UK national and resident, had £100,000 invested in a UK bank deposit account. He was planning to spend more time outside of the UK within the Euro zone. He had concerns over currency exchange rates and was seeking 100% investor protection.

Working with his IFA, Mr B identified a suitable £ sterling denominated Money Market fund and transferred the £100,000 into it via the European Mobility Offshore Bond. Being Luxembourg based, Mr B benefits from 100% investor protection. Investments are protected under the “tripartite” agreement, which states 100% of assets held by the provider, must be deposited with an independent custodian bank under the supervision of the Luxembourg Insurance Authorities. The CAA (Commissariat Aux Assurances) is the regulatory body for insurance within the Grand Duchy of Luxembourg.

Mr B also has the option to switch into a Euro (or other quoted currency) denominated fund when market conditions are favourable.
Whilst residing in the UK Mr B is able to withdraw up to 5% pa on a tax deferred basis.