The legality of the arrangement will vary from case to case, but in principle there is no reason why an offshore company should not be utilised in a structure designed to protect an individual’s wealth from legal claims, creditors, or other risks such as politically motivated asset confiscation.
An associated advantage of utilising corporate financial services in an offshore jurisdiction is that it can offer protection against political, economic, or currency risks. By holding assets in offshore companies located in multiple jurisdictions, investors can spread their risk and potentially enhance their returns.
Lessons having been learnt, there remains a bright future for the providers of offshore financial services where the jurisdiction is properly regulated in accordance with international standards, clients are transparent about their activities, and the monies have been lawfully obtained.
Those who prophesy doom for the future of well-regulated offshore jurisdictions are misconceived in their views where individual and corporate clients play by the rules.
Jonathan Fisher KC is a barrister from Red Lion Chambers; he is also a senior fellow (and visiting professor) at the London School of Economics
