Getting Advice On QROPS
QROPS (Qualifying Recognised Overseas Pension Scheme) advice can be obtained from many financial advisers. There are many websites appear to be general information sites that are actually run by Financial Advisers to promote their services. Instead, www.qropshelpcentre.co.uk is an independent website intended to give information on QROPS and help you find the right advice for you.
Where Do I Go For QROPS Advice?
By giving us your details we can arrange for a suitably qualified financial adviser to contact you about a transfer to QROPS. All the advisers that we we have on our panel have the necessary qualifications to advise on pension transfers.
How Do I Check That An Adviser Is Authorised To Give Me Advice?
All advisers (or their firms) based in the EU should be registered with the relevant regulatory authority in the country they operate in. Any UK based firm advising on QROPS should be regulated and the adviser will be registered individually with the regulator (Financial Services Authority). You can check the FSA register for both the individual and their firm. The requirements differ in other countries so check what the regulations are in the country in which the adviser is based. For your own protection it is alsways best to get advice where the adviser and the firm are subject to regulation.
What Should I Expect From An Adviser?
The first thing an adviser should do is obtain full details of yourr financial situation, what investments you have and your future plans. This can be done by completing a detailed fact find. The details should consider what level of investment risk you are prepared to take with your money.
The adviser should obtain written authorities from you allowing the pension schemes to provide him with the information needed to advise you on a the possible transfer to a QROPS.
Once the adviser has all the necessary information from the pension schemes he should complete a Transfer Value Analysis (TVA) which determines whether it is beneficial to transfer your UK pensions to a QROPS. The TVA should take into account what benefits you are giving up as well as what the plan could provide in the future. The TVA should take into consideration the level of investment risk you are prepared to take.
The adviser should also take into account the tax regimes of the country you are living in and the country where the QROPS is located.
You should expect an adviser to be happy to provide you with details of his recommendations and reasoning in a letter before you complete any application forms. It is also important for him to details the reasons for selecting the QROPS provider he recommends.
When the adviser has recieved the completed application forms, he and the QROPS provider should deal with all the relevant administration in arranging the transfer.
How Much Will The QROPS Advice Cost?
Advisers may charge you for giving QROPS advice on a fee basis, just like a solicitor. This fee is payable whether you take out a QROPS or not. The fee should be agreed in advance and confirmed in writing. If you decide to take out a QROPS, then it may be possible for the fee to be paid to the adviser by the QROPS provider and taken from your plan as part of the setting up charges. It is highly probable that the fees charged by an adviser would be under £2,000 for the advice and setting up of the QROPS.
The alternative is for the adviser to be paid commission. The comission will be incorporated into the costs of setting up a QROPS and in many cases can be significantly higher than a fixed fee basis of charging. For example if your pension pots are worth a total of £250k, a commission rate of 3% would give the adviser comission worth £7,500.
The information given in this article is strictly for information purposes only and is not to be construed as financial advice.
For more information on QROPS visit the HMRC website here.