Qrops pension advice

That's why many experienced offshore financial professionals are so appalled at the low standards of international financial advice offered by some 'consultants'.

Regulators in Spain in particular are so concerned about poor standards that they have recently started investigating some firms and individuals suspected of breaking the rules.

Here are some sharp practises to look out for:

Putting QROPS business through one provider

Rather than point the client at the best QROPS provider for them, the advisers routes all QROPS business through one provider in one jurisdiction to collect a bumper commission pay out called a volume over ride

Putting all QROPS investments through one provider

This gives advisers a double whammy - more commission from the same amount of work by collecting the provider over ride (see above) and a n investment commission over ride as well.

Rubbishing in specie transfers

An in specie transfer is a means of transferring assets between pensions without converting them to cash, specifically between a SiPP (Self-invested personal pension) and a QROPS. This costs you money - you lose on selling up what can be perfectly well performing investments and then a second time on investment charges.

Small fund QROPS transfers

QROPS rules place no upper or lower limits on fund transfers - an investor can consolidate a number of small funds or transfer a single fund of any value. The issue is some providers will not accept transfers below a certain limit or the costs involved in a small fund transfer mean the transaction is not cost-effective.

This limit is often set at ?100,000 - although some New Zealand QROPS schemes are excellent vehicles for small fund transfers.

Commission and QROPS charges disclosure

Everyone knows costs are involved in switching pension funds to a Qrops. Any reputable adviser and provider will lay out these costs in advance - and an investor should demand no less or how do they know what the ongoing fees are likely to cost?
If your adviser refuses to tell you, it's likely the fees are too high.

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For more information about transferring your Qrops, contact the global leaders QROPS.net