This news service joined a conference in Monaco, hosted by Trustconsult, under the theme of “Global threats on you and your assets: How to secure your position, holdings and transmission.”

Tax hikes, geopolitical turmoil and threats such as cybersecurity attacks require private client advisors to examine how to protect HNW individuals and their families. And the full range of tools in the box must be employed, a recent conference in Monaco heard.

Threats come in many forms. The UK is ending the resident non-domicile system; Norway has introduced a wealth tax; France has a wealth tax on worldwide properties; and the UK is now taxing the estates of deceased business owners and farmers. In the US, the worldwide system of tax shows no sign of ending, and American politics are ever more polarised. Conflicts in parts of the world put a higher premium on security, as do problems such as crime in the streets of major cities.

At times such as this, international financial centres such as Monaco remind people why they are important. While predictions of the demise of offshore centres have been made over the years, their relevance appears clearer than ever, attendees at the annual Trustconsult conference in Monaco heard. 

The half-day event, featuring a series of panel discussions (see the preview here), ranged from identifying and mitigating threats to security, through to preserving privacy in international wealth planning. 

The conference, held at the Fairmont Hotel in the principality, was opened by Cécile Civiale Vuillier, partner, Trusconsult (Suisse), while her colleague, Christian Buhlmann, CEO and founder of Trustconsult Group, made introductory remarks. 

“What was private once is now exposed; what was protected is now at risk. Is wealth now an asset or a liability?” Civiale Vuillier said. “Wealth is no longer [just] about accumulation – it is about protection.”

Buhlmann referred to a comment, attributed to Sir Winston Churchill in 1948, about the need to have “freedom from fear,” and on current concerns that people have today about their personal security and wealth, and on the dangers of complacency.

“People are coming to Monaco from countries where they have had the experience of threats against their lives and assets,” Buhlmann said.

A royal message
An address from HRM Queen Diambi Kabatusuila of Congo set the theme of how those with great wealth can use these resources to improve lives and do so  with an understanding of the threats and challenges that those who hold such wealth have.

For many years, the world has been used to a “US-centric” environment, but that is starting to change. For example, the rise of the “Global South” carries implications for the durability of the US dollar as a global reserve currency, she said.

Panels
The first panel, entitled “Identifying and mitigating threats to your wealth and security,” featured Filippo Noseda, partner, Mishcon de Reya (UK); Francesco Grosoli, CEO of CMB Monaco (Monaco); Christian Buhlmann, CEO Trustconsult Group (Monaco); Will Adams, executive director, Private Trust Partners; and Pierre-Jean Douvier, international tax specialist in Monaco.

Buhlmann spoke of how Monaco had put in place “extremely powerful protections for people in terms of wealth and security.” “Monaco is really adding value,” he said. 

Noseda explained how, in his view, the drive by governments and campaigners to require ever more transparency, even at the cost of a loss of legitimate financial privacy, was starting to falter, even reverse. He noted, for example, that the US administration of Donald Trump has – at least for now – stymied the US Corporate Transparency Act to some extent. (In a recent ruling, a Michigan judge, Robert Jonker, struck down the Corporate Transparency Act (CTA) as unconstitutional, expressing concerns about the government's "Orwellian 'Big Brother' digital warehouse" and the potential for a broad, suspicionless collection of data, impacting small businesses.)

“I am really pleased that there has been a pushback,” Noseda said. “We need to continue fighting for the legitimate expectation of people to keep their financial affairs private,” Noseda said.

Grosoli said clients coming to Monaco have had concerns about their security. “What clients look for is peace of mind,” he said. Talking about various risks, Grosoli said that cybersecurity risks remain underestimated. As and when quantum computing becomes a reality, the financial services industry appears not yet ready to handle it, he said.

Douvier spoke about how Monaco has worked hard to adapt and apply international standards, for example on tax. Calls for registers of beneficial ownership are a “real issue,” he said. 

Adams shifted gears by talking about the rise of digital entities such as stablecoins. (These are types of cryptocurrency designed to maintain a stable value, typically pegged to a specific asset like a fiat currency.) “Custody of these assets is going to become very relevant and very necessary,” he said. 

Buhlmann spoke about the uncreasing distrust of the traditional financial system. “Bankers have become an arm of the state,” he said. More and more clients are becoming interested in the crypto field.

The second panel – under the headline of “Establishing stability: Personal relocation and strategic tax residency" – featured Baptiste Polan, Trustconsult Group (Switzerland); Nicolas Rochette (an expert on relocation to the UAE, from Stonegate (UAE); Thibault Venrenterghem, family officer, Intuitae Paris (France); Arthur Rohmer, founding partner of Artieri & Rohmer, law firm in Monaco; and Francesco Oliveti, managing partner, Ari Financial Group (Switzerland). 

Venrenterghem opened the discussion by discussing how, in countries such as France, tax rates are high, encouraging people to relocate to jurisdictions such as Switzerland, Luxembourg and Belgium.

Rohmer said that the principality was attractive, even for a French citizen, because of its proximity to airport connections and its safety. He has noticed a take-up of residency in Monaco from Israelis after 7 October 2023, as well as citizens from Ukraine. To qualify for Monaco residency, one needs, among other matters, to have sufficient funds to live there, and have a lease or purchase agreement for property. Creating a company in Monaco comes with strict rules –such as obtaining authorisation from the Monaco government – but it affords a level of flexibility, he said.

Polan discussed UK inheritance tax applying on residents and non-residents when it concerns property. There are tools that can be used to handle potential IHT bills that arise, for example from life insurance, he said. One option is that of the unit-linked life insurance solution, he said. (This is a product that offers a combination of insurance and investment payout.)

Oliveti also spoke of the benefit of using entities such as private placement life insurance and other insurance-related products, i.e. universal life, in dealing with tax. This is not just about creating a structure but ensuring that interested parties have liquidity available when they need it, Oliveti said. An insurance policy can create the availability of liquidity when needed; a trust can also still provide a useful structure, he said. Asked about this market and the awareness of clients and advisors, Oliveti said this was an area requiring continued education.

Rochette, drawing on his own work in the UAE, said that “we are seeing a lot of Brits moving to the UAE”; the jurisdiction has “much lower taxes” than in the UK, and many banks and other financial institutions are moving there. Lifestyle, infrastructure and safety are large attractions, he said. 

The third panel, under the banner of “Safeguarding Wealth: Optimal structures and jurisdictions for legacy planning,” included Nicholas Dhotel, CEO Trustconsult Capital Advisory (Switzerland); Alexander Kern, global business developer (UAE and Monaco); Katrina Abela, founder of VAIA (Malta); and Bjoern Lippe, founding partner, Dara5 (UK). 

Lippe said he has seen a lot of people moving to the UAE and also expects an exodus to Monaco. 

People will always want in-person contact and, among younger HNW individuals, there is a desire for hands-on engagement in investments. “People are very keen to learn things and to experiment,” he said. “Venture [capital] is about access, not an asset class.”

Dhotel agreed that different generations of HNW people have different approaches to investment and risk. It takes time for banks to change their offerings to suit the new generation, he said. Asset allocation ideas must catch up with this reality, he said, such as with alternative investments accounting for about half of total allocations, not, say, 15 per cent.

Abela, drawing on the experience of her Malta-based business, said: “We have seen a lot of the younger generation going into high-value assets like yachts and aircraft…they are also more interested in structures and how to maximise [the value of] assets.” Malta is now “flooded with requests” around immigration from the US and UK “for reasons you can understand,” she said. She sensed that this has been a large change for 2025.

The fourth and final panel of the afternoon is on the theme of “Beyond borders: Preserving privacy in international estate planning.” Panellists were David W Wilson, partner, attorney at law, Schellenberg Wittmer (Switzerland); Marcos Esteve, managing partner, Banque Heritage (Switzerland); Line-Alexa Glotin, partner, UGGC Avocats (France); and William Easun, founding partner, Tempest Legal (Monaco).

Esteve discussed succession planning and the need to plan, set up family charters and encourage family members to learn the experiences of working outside a dynasty’s business. 

Easun addressed the problem of where, in the absence of a detailed will, a family might have to rely on the testimony of a deceased person’s supposed friends to understand his or her intentions. And, in that situation, matters that should have been private come out into the public sphere as a result of the witness statements arising in a civil court action. 

Glotin raised the issue of the complexities that come with mixed families – where family members are from, or live in, different jurisdictions. Regular family meetings are important in such cases, Glotin said. 

Easun raised the difficult topic of privacy and security: the physical attack on ex-Beatle, George Harrison, at his home in Henley-on-Thames in 1999, was a reminder of the dangers of people knowing where a famous and wealthy person lives. Another ex-Beatle, John Lennon, suffered an even grimmer fate when he was shot dead in 1980 outside his home, the Dakota building, in New York.

Wilson referred to debate in Switzerland about the registration of beneficial ownership information. The Swiss Federal Council has adopted a bill proposing significant amendments to Switzerland's anti-money laundering framework. The proposed register, Wilson said, would not be a public one.