While sweeping new US legislation has been blamed for squeezing the ability of financial services firms to provide services to expat US citizens, the UK-based firm, London & Capital, has sought to tap a potential new gap in the market by rolling out a range of tax-compliant portfolios.

Last year, the US administration signed the HIRE Acts and Foreign Account Tax Compliant Acts – or FATCA – which increase the compliance workload on firms dealing with expat US citizens. The laws have been passed to stamp out alleged tax evasion.

The firm’s US Managed Portfolios are being launched on the Praemium platform, which allows advisors to maintain control of their clients' affairs and to maintain existing UK wrappers, including individual savings accounts and self invested personal pensions.  They are actively managed by London & Capital. They require a minimum investment of £10,000 (around $16,112). The portfolios are open to US citizens and Green Card holders, the firm said in a statement.

“Never in the 25 years that we have been advising and providing wealth management solutions to US clients has regulation been so onerous, have investor penalties been so severe, or - with so many UK banks and wealth management groups withdrawing from this space - has investment choice been so limited,” said Daniel Freedman, joint managing director and head of US Family Office at London & Capital.