Offshore Asset Protection Demand Drives Southpac Group’s North American Growth

Malpractice litigation concerns among US doctors are creating an export opportunity for New Zealand firm Southpac Group. The offshore trustee and international wealth protection specialist, which manages more than $6.8 billion in assets, is preparing to expand its North American referral network as demand for offshore asset protection rises among medical specialists, business owners and other professionals. Southpac Group’s international growth plans have also featured in the NZ Herald.

The expansion follows research showing medical liability claims remain a career risk for some US doctors. Recent American Medical Association research found nearly 60 per cent of obstetricians and gynaecologists and just over half of general surgeons had been sued at least once during their careers. Claim likelihood increases with years in practice and differs between specialties.

Why Offshore Asset Protection Is Attracting US Professionals

Matthew Smith, a lawyer and director of business development at Southpac Group, says many American professionals investigate protective structures before any dispute arises. For doctors who have accumulated wealth over decades, malpractice exposure, policy limits and a highly litigious environment can create risks extending beyond their medical practice.

“Most clients are professionals or company owners looking to protect assets they have spent decades building,” Smith says.

“The US legal environment is far more aggressive than what we see in New Zealand.”

Smith says offshore asset protection is generally considered alongside insurance, estate planning and broader wealth preservation measures. It cannot be introduced after a legal claim has emerged. Structures need to be established lawfully and well before litigation, with legal and tax advice suited to the client’s circumstances.

Malpractice insurance remains an important first line of defence, but policies can limit the amount paid for a claim. Southpac says this is one reason trust and company structures are more commonly discussed in the United States than in New Zealand, particularly among higher-risk specialists.

Offshore Asset Protection Supports Rapid Client Growth for Southpac Group

Southpac Group says new client numbers increased by more than 290 per cent between 2022 and 2025. The company attributes the expansion to stronger interest among wealthy Americans in litigation risk, geopolitical uncertainty and long-term asset preservation following the pandemic.

The United States represents about 85 per cent of Southpac’s client base. The firm administers structures for clients from 51 countries, with the UAE, Canada, Australia, New Zealand and the UK also among its larger markets. Southpac CEO Mike Arand says medical professionals are one of its fastest-growing client groups.

Southpac Group was the first trustee company licensed in the Cook Islands and says it has established more than 4,000 trusts during the past 40 years. Most clients hold between US$2 million and US$10 million in assets and use offshore asset protection as one part of long-term wealth planning rather than as a response to an immediate dispute.

Cook Islands and Nevis Structures Create Separate Layers

The Cook Islands introduced specialised asset protection trust legislation in the late 1980s. The jurisdiction became internationally recognised for laws designed to protect assets against future creditor claims where a structure is established before legal action begins and relevant legal requirements are met.

Southpac Group also works with Nevis, a Caribbean jurisdiction with protective company legislation. Depending on the client’s requirements, a Cook Islands trust can own a Nevis company, placing the trust and underlying entity in separate jurisdictions.

“For many clients, a Cook Islands trust may sit above a Nevis company, creating two layers of protection across separate jurisdictions,” Arand says.

Arand says operating across both jurisdictions differentiates Southpac in the international offshore asset protection market. The firm employs 26 staff in New Zealand alongside teams in the Cook Islands, Nevis and the Philippines.

Due Diligence Central to Offshore Asset Protection – Southpac Group

Offshore trusts remain controversial and can attract scrutiny because of concerns about tax evasion, financial crime and attempts to frustrate legitimate creditors. Southpac says its onboarding process includes identity verification, background checks, sanctions screening, politically exposed person checks and ongoing monitoring.

“Prospective clients can be declined outright where there are concerns around sanctions exposure, criminal activity, tax transparency or existing legal claims,” Arand says.

The Cook Islands was rated compliant or largely compliant with 38 of the Financial Action Task Force’s 40 recommendations in its latest international review, compared with 34 for New Zealand. The ratings assess technical measures jurisdictions have in place to combat money laundering and terrorist financing.

North American Adviser Network Set to Expand

Southpac Group is preparing meetings with specialist asset protection lawyers in Los Angeles, San Diego and Canada. The programme is intended to strengthen relationships with attorneys, wealth advisers and other professionals who refer suitable clients requiring international planning expertise.

“There are thousands of lawyers across the US advising on domestic asset protection, but many still do not fully understand offshore structures,” Smith says.

“That represents a significant growth opportunity for us.”

Arand says offshore trust administration has developed into a professional services export sector connecting New Zealand, the Cook Islands and North America. Offshore financial services are estimated to contribute about 8 per cent of the Cook Islands economy, placing the sector among its largest industries outside tourism.

With North America expected to remain Southpac’s main growth market, the firm anticipates continued demand from doctors and other professionals seeking offshore asset protection before legal risks materialise.

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