Deciding on where to go for QROPS advice is confusing because so much conflicting information is out there shouting for your attention.
QROPS are a specialist subject and a successful QROPS transfer requires skills and experience most financial advisers do not have.
Looking for QROPS advice is like going to your family doctor about a serious illness. Your doctor is not going to treat you, but will screen your symptoms and send you on to a consultant who has the expertise to deal with the condition.
QROPS advisers are consultants who have to know about pension planning, estate planning, cross border tax and pension transfer administration. Transferring a QROPS is outside the day-to-day dealings of most financial advisers and needs specialist training and knowledge.
Bear in mind that the huge mass of QROPS pension advice available, especially online, is well-intentioned but often out-of-date or written by someone with a lack of understanding of QROPS technical details, so you need to find an adviser competent to look after your money.
To make sure anyone transferring existing pensions in to a QROPS has had personal and relevant advice, QROPS providers do not take applications directly from clients but insist on independent advisers handling the transaction.
The problem is how to pick a qualified and experienced adviser to handle a QROPS transfer. Making the wrong choice could end up with a pension investor paying up to a 55% tax penalty on the value of the fund transferred to a QROPS if HM Revenue and Customs class the QROPS switch as outside the rules and an ‘unauthorised payment’
To avoid problems, tick some important boxes when looking for QROPS advice, like an adviser is:
An independent adviser does not have a ‘tie’ to any provider or small group of providers and can give professional, unbiased and expert advice
Check out that the adviser is regulated in the UK by the Financial Services Authority AND the equivalent in a major country. This gives peace of mind knowing that a government financial ombudsman is available if you have concerns about a QROPS transfer
Whole of the market
The financial firm handling your QROPS pension transfer should match your personal financial needs against the 1,400 or so QROPS schemes, rather than squeezing you in to one of a number of limited products some advice firms sell.
Experienced in QROPS
The adviser’s firm should have no problem demonstrating a track record in successful QROPS transfers.
Contact us here at QROPS.net for the very best advice