Last updated 2026
In June, and again in August 2021, US brokerage firm Wells Fargo sent letters to many of its clients living outside the USA saying that they need to move their accounts to another brokerage firm by the end of September 2021. The letter stated that “Wells Fargo Advisors is exiting the international business segment” and that after September 30, 2021 the accounts will be moved away from the client’s advisor to their “International Centralized Group” service center and will be restricted to liquidating or closing transactions.
Why are US brokerage firms closing expats’ accounts?
Charles Schwab, Fidelity, and Merrill Lynch, among others, have all sent similar letters to their clients living outside the USA. This continues a multi-year trend of US brokerage firms closing accounts for non-US residents as a result of increasing compliance burdens associated with Know Your Client rules, anti-money laundering checks, and tax initiatives such as FATCA and regulations such as the EU GDPR and PRIIPs.
PRIIPs regulation is especially troublesome for US citizens living in Europe since it effectively bars them from investing in US mutual funds or exchange-traded funds. At the same time US taxpayers do not want to use non-US funds because they would be considered PFICs under US tax law and subject to expensive and complicated tax reporting.
What can expats do if Wells Fargo closes their brokerage account?
Liquidating the assets in an account that’s being closed or frozen can trigger capital gains or income tax implications, so the better course of action is to transfer the assets to an expat friendly broker.
At IAM Advisors, we have specialized in investment management and financial planning for US expats since 2002 and over 80% of our clients are Americans living outside the USA.
If investment management is important to you, then you should look for a firm where your investments will be managed or advised by a Chartered Financial Analyst (CFA). This designation is the most widely accepted portfolio manager designation in the world, and the only global portfolio management credential.
If financial planning is important to you then you should look for the CFP designation. This denotes a Certified Financial Planner, which is the most widely accepted, and again the only global, financial planning designation.
It may also be important to you whether the investment accounts offered are multiple currency and whether money can be wired in and out in non-US currency and exchanged at a good rate if you spend your money in something other than US Dollars.
Also, does the investment account offer access to non-US investment markets and are the trading fees competitive. Many brokers advertise non-US market access but placing trades on non-US exchanges carries a hefty fee or currency conversion cost. If you are a non-US resident, international investments may be an important part of your portfolio.
Since 2002, IAM Advisors has specialized in investment management and financial planning services for Americans living abroad. International Asset Management (IAM) is a US Registered Investment Advisor with clients in over 60 countries. Our US citizen clients living abroad benefit from US tax-compliant portfolios that avoid PFIC issues and are customized for their investment profiles.
If you have any questions about financial planning as an American living abroad, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
