Wealth management in the United Kingdom: choosing a private bank in London

London, Europe's leading wealth management centre

Wealth management in the United Kingdom is provided by British private banks, discretionary managers and independent financial advisers authorised by the FCA, who manage or advise on portfolios in sterling and other currencies, mainly from London and Edinburgh. The City's private banks, managers and family offices and Edinburgh's asset management industry give a foreign investor direct access to equities, bonds, funds and alternative assets.

The City is home to British and international private banks, portfolio managers and family offices, while Edinburgh hosts a significant asset management industry. This market depth, which explains the appeal of UK wealth management for a foreign investor, gives direct access to equities, bonds, funds and alternative assets.

Private banking within a British banking group

Within NatWest Group, NatWest refers clients with substantial wealth to the group's private bank, Coutts, known for its affluent clientele. Entry thresholds and acceptance of a non-resident depend on the profile and are never guaranteed.

Discretionary, advisory or execution-only

A discretionary manager makes decisions under a mandate, an adviser recommends while the client decides, and an execution-only platform simply passes on orders. Each option for British private banking carries a different level of responsibility and cost.

Independent advice and the commission ban

Since the 2013 Retail Distribution Review, financial advisers can no longer receive commissions from product providers on recommendations to retail clients. They charge explicit fees and must state whether they are independent or restricted.

Asset protection under the CASS rules

The CASS sourcebook of the FCA Handbook requires managers to segregate client securities and cash from their own assets and reconcile them regularly. If a firm fails, these assets must be returned to clients.

FSCS for investments: a separate limit

The FSCS pays up to 85,000 pounds when a failed authorised manager or adviser cannot return assets or gave bad advice. This cover is separate from deposit protection and never compensates for market losses.

Consumer Duty: an obligation to deliver good outcomes

In force since July 2023, the FCA Consumer Duty requires firms to show that their products offer fair value and suitable outcomes. Managers must justify their fees against the services actually provided.

End of the non-dom regime in April 2025

Since 6 April 2025, the remittance basis has been abolished and replaced by a four-year regime for new arrivals. Inheritance tax now depends on long-term residence, a change worth reviewing with an adviser.

Multi-currency portfolios and currency hedging

London private banks routinely hold accounts in sterling, euros, dollars and Swiss francs. A client whose wealth and spending are in euros must decide whether to hedge sterling exposure, a decision recorded in the risk profile.

Tax reporting and international transparency

British managers report non-residents' accounts under the CRS and US taxpayers' accounts under FATCA. A client resident in France receives the statements needed for the income tax return, any IFI filing and form 3916.

Preparing your file for wealth management in the United Kingdom

Before approaching a firm, define your objective, your investment horizon and your tolerance for risk. In practice, a wealth manager starts by assessing whether products suit your situation, and only then proposes a mandate or recommendations. The more precise your answers, the faster the discussion moves and the closer the proposal is to what you actually expect. Take the time to reread your answers.

The file usually includes a passport, recent proof of address, the tax identification number of your country of residence and an explanation of the source of wealth. Depending on the bank, certified copies may be requested. Prepare legible documents that agree with each other, because an inconsistency in an address or a date often delays the review.

Common mistakes include a vague objective, outdated documents, a source of funds described in a single sentence and applications sent to several institutions without a real comparison. No bank guarantees that a foreign client will be accepted: the outcome depends on the profile, the amount entrusted and the clarity of the file presented. Fix these points before submitting any file.

British private banking or an independent adviser: how to choose

A British private bank often offers an integrated set of services: an account, credit, custody of securities and portfolio management. An independent adviser recommends solutions and relies on a custodian to hold the assets. Both models are authorised by the FCA, but the split of roles, fees and responsibilities differs significantly between them. Note the answers so you can compare calmly afterwards.

Ask precise questions: is the firm authorised, which institution holds your securities, what fees are charged and how are conflicts of interest handled? Also ask whether the products on offer come from a wide or a limited range. Written answers let you compare several proposals without relying only on reputation. A written comparison avoids many misunderstandings. If an answer is missing or evasive, treat that as information in itself.

A remote relationship is common for a client living outside the country, with video meetings and documents sent through secure channels. Some firms still ask for a meeting or for extra evidence. Depending on the bank, opening can take several weeks, especially when the wealth comes from several countries or several companies. Ask for these details at the very first meeting.

Fees, mandate and follow-up with a UK wealth manager

Ask for a complete fee schedule before signing: management or advisory fee, custody charges, transaction costs and currency margins. Expressed as an annual percentage, these costs add up and reduce net performance. The Consumer Duty requires the firm to justify the value of what it charges, which entitles you to ask detailed questions. The detail of costs should appear in writing.

The mandate sets out the manager's powers, any restrictions you impose, the frequency of reports and the conditions for termination. Read the clauses on permitted investments and on the reference currency carefully. Regular follow-up, with a review of the risk profile after a change in your circumstances, is part of a well-run relationship. A vague clause deserves a question before you sign.

If you disagree with the firm, first send a written complaint, which it must handle under an internal procedure, then find out about the competent redress body named in its documents. Keep the correspondence, statements and reports you receive: they serve as evidence if the dispute concerns advice, a fee or a contested transaction. These records are your best protection if a dispute arises.

Tax reporting and checks with the regulator

A wealth management account in the United Kingdom is not invisible to tax authorities: institutions apply CRS and FATCA and send information to the country of residence. You remain responsible for declaring your foreign accounts and income under your own country's rules. A tax adviser can explain how your personal situation affects the position. Professional advice remains useful for complex cases.

Before entrusting funds, check that the firm appears on the FCA register, that its exact name and contact details match the documents you received, and that the activities offered fall within its authorisation. Be wary of any unsolicited approach and of any promise of a high return without risk. This check takes only a few minutes. Official registers are free to consult and are the quickest way to confirm who you are really dealing with.

Keep in mind that British private banking does not remove the risk of loss: FSCS cover addresses the failure of an authorised firm, not falling markets. Reread the terms and conditions, the fee policy and the risk description, then keep a signed copy of each important document. File these documents so you can find them easily. Choosing UK wealth management should rest on documents, not on assurances given over the phone.