Opening a UK bank account has however been a longwinded and complicated process

An increasing number of South Africans are sending substantial amounts of money offshore each year due to frequent travel, a greater appetite for offshore investing, business interests abroad and a growing trend to educating their children there.

The UK has proven to be the popular choice due largely to the similar time zones and legal systems and also the shared language.

Opening a UK bank account has however been a longwinded and complicated process for South Africans, as it is for most overseas investors.

South Africans who are not UK residents often require a formal introduction to a UK bank, a process that normally requires among other things, a letter of good standing from a relative who is an account holder in the UK.

The strict UK regulatory environment that includes measures put in place to ensure AML (anti-money laundering) has translated into a waiting period of up to six months for bank account applications for non-residents.

This presents real challenges for South Africa’s ‘global’ citizens, many of whom are not restricted by South African borders in their income generation and preservation.

With just 0,5% of global assets residing in South Africa, the case for investing in other jurisdictions becomes clear.

Since the relaxation of exchange control regulations over a decade ago South Africans have been able to externalise more and more funds into other currencies, a change that has been welcomed by investors looking to diversify their portfolio.

The legal amounts are currently a R4 million investment allowance per taxpayer per calendar year and an additional single discretionary amount of R1 million per calendar year.

Investec Bank Limited, South Africa’s leading Private Bank and Wealth & Investment manager, in collaboration with Investec Bank plc in the UK, has made opening a UK Private bank account a seamless process for its ‘global’ South African clients.

One South African brand capable of offering clients an onshore and offshore transactional facility marks an industry first.

Along with frequent travellers and those with dependents and material assets in the UK, the new account offering is also ideal for young South African professionals on secondment or working there.

Deon Katz, Head of Banking at Investec Private Bank SA says, “There has been a substantial demand from our clients looking for options in the UK and in fact we know that it’s the destination for around two-thirds of their offshore investments.”

“The next logical step was for us to create a seamless environment to take the hassle and time wastage out of opening an account there.”

“It currently takes around three weeks to open and this timeframe will come down to a matter of days in the near future.”

According to Wayne Preston, Head of Banking at Investec Bank plc, the UK Private bank account has been designed specifically to remove pain points previously associated with opening a UK facility.

“Investec is differentiated in the market due to its specialist approach and distinctive client experience.”

“A dedicated telephonic banking team available 24/7 along with worldwide emergency assistance, and sophisticated, secure online and mobile banking form part of Investec’s One Place offering,” he says.

In the UK, Investec is the third largest private client investment manager with £73 billion under management whilst the South African business holds the leading position with assets in excess of R747 billion in SA.

The business was recently announced as the Best Private Bank and Wealth Manager in South Africa, at the Annual Global Private Banking Awards held in Geneva.

With approximately 75% of JSE earnings currently generated offshore, interest in investments beyond local borders is set to continue.

The UK remains a key strategic priority for Investec, an approach that seems to be shared by its client base. It’s now become a great deal easier with the new UK Private bank account.