FATCA -- investment adviser

FATCA hassles yet again!.
I  am a retired dual citizen (US &UK) living in the UK and have to date employed a wealth manager to advise on my SIPP and ISA accounts.
I have now been told by my wealth advisor that since the new IRS reporting regime came into effect they are no longer willing to advise on my ISA account and that it is unlikely any other UK wealth advisor would provide such a service.
Has anyone else had such an experience and if so what is the best way forward?

Stocks and shares ISA's are investments to stay well clear of as a USC. Keep to cash NISA's, £15k per year allowance, with no nasty reporting. just file like a normal bank account. Also look at Premium Bonds with NS&I, you have a £40k limit now, again simple reporting structure.

I appreciate your note. To be sure I understand, I cannot buy individual shares -- even if only one company -- and put those in an ISA?

Opinions differ on this topic - see

http://hodgen.com/is-an-isa-a-foreign-trust/

for some discussion. One interpretation is that the IRS ignores the ISA wrapper and taxes the contents of the ISA according to US tax laws. So you can reasonably hold individual stocks within an ISA. Of course, this does mean that the small time investor has to maintain a small portfolio of stocks which requires more risk and attention than many may be willing to take on.

There is no doubt or shadow of doubt. A NISA cannot be held in trust and is not a trust.

A single company share is quite kosher, provided it is not a PFIC. Dividends and gains are taxed by the US, but not the US. The value is still subject to IHT and US estate taxes.

The NISA is FBAR and Form 8938 reportable, even though the financial institution is not required to disclose it under FATCA.

I have now been told by my wealth advisor that since the new IRS reporting regime came into effect they are no longer willing to advise on my ISA account and that it is unlikely any other UK wealth advisor would provide such a service.

Take this a a good development.....seriously, you'll be saving yourself some money. the SIPP's "pension wrapper" should save you from any US PFIC issues and any US tax liability until you start taking income.

The ISA (or New ISA) is another matter as the IRS will look right through the wrapper and tax you on the underlying assets. So you don't get any US tax advantage and must avoid pooled investments that would be classed as PFICs. Cash and individual stocks and bonds would be ok, but they will imposes a significant paperwork burden on you.

One hopes that the SIPP has been annually reported on Form 3520 and 3520-A and that csmc1947 is electing to claim the benefits of the treaty on the annual US income tax return.

This is the first that I've heard of Form 3520. The U.s.-based accountant who has been handling my U.S. tax returns was obviously not aware of this. One more hassle to address, in addition to finding a new financial adviser to handle my non-SIPP funds. I appreciate this thread. Any suggestion would be appreciated on investment advisors for ISA and general investments as well as someone who deals with tax returns. I live in London. I have a UK based accountant to handle my Uk tax returns. I have always shared both returns and all sets of information with both accountants. Using the U.S. based one has obviously been a wrong decision.

This is the first that I've heard of Form 3520. The U.s.-based accountant who has been handling my U.S. tax returns was obviously not aware of this.

Some advisors don't believe that 3520 forms or active claiming of treaty benefits for pensions are required.