UK IFAs Beware!

Posted: 03 September 2009

Any UK Financial Adviser who supplies advice to a client who has the potential to live in any other country has to be extremely careful.   We only have to look at the 3½ year old phenomenon of the Qualifying Recognised Overseas Pension Scheme (QROPS).  UK options are simply not always the best retirement planning options; indeed a combination of UK and overseas options may be most suitable advice.  

 

If a client clearly has

a)                 A connection with another country and or

b)                 A passport for another country and or

c)                 A spouse from another country and or

d)                 Has the right of abode in another country and or

e)                 When asked about future plans (a key aspect of financial planning) mentioned his or her wish to migrate

then QROPS will have to be factored into every aspect of pension advice provided to that client.

 

QROPS will have to be considered too when pension or retirement planning guidance is provided to any client – even if only to deny the import of a QROPS for that client’s circumstances. 

 

The Financial Services Authority has made clear the need for specialist advice where potential QROPS circumstances prevail.  If a Financial Adviser doesn’t find out all the facts they fail the “know your client” rules.  If a Financial Adviser doesn’t do this but gives advice with disclaimer after disclaimer in place (i.e. the advice has not factored in the differing circumstances in your chosen country of residence or the advice is only suitable should you intend to remain in UK) then only those clients who don’t read the caveats are going to proceed.

 

QROPS has arrived.

 



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