Another specialist pensions adviser has spoken out against the big QROPS rip off perpetrated by some offshore pension sellers.
QROPS.net has spoken out about the QROPS cowboys who give poor advice and charge big fees.
Now David Trenner, technical director at Intelligent Pensions, claims QROPS have created an opportunity for abuse and mis-selling.
Speaking at a retirement income specialist road show, Mr Trenner told the audience that QROPS are a valid pension planning option, but pension savers need to be aware of advisers who are not regulated and who take commissions as high as 8% of the fund sell many QROPS.
Expats should not assume that an overseas QROPS salesman knows more about QROPS offshore pensions than an independent UK financial adviser, he added.
He explained some clients lose up to 10% of their funds when they transferred in to a QROPS because overseas sellers did not have to disclose fees, commissions and charges.
QROPS.net has warned anyone transferring their UK pensions in to a QROPS scheme that they should carefully check out overseas advisers before entering in to any agreements.
Watch out for QROPS advisers charging huge fees
Often, offshore QROPS packages look better than those offered by regulated companies because the illustrations leave out crucial charges.
Overseas advisers who do not work with a firm that has proven experience in QROPS transfers are unlikely to have the backing of investment and tax professionals.
Clients can often end up as ‘orphans’ when small advisers close down. This can lead to poor performing funds unless a new adviser is found to help with regular reviews.
Many advisers claim that HM Revenue and Customs (HMRC) approves their QROPS because they are on the HMRC list of providers – but this does not mean any scheme is endorsed by the tax man.
Instead, inclusion on the list merely indicates the scheme is registered with HMRC.
If you are looking for professional, expert advice from an independent adviser with QROPS experience, contact us today