Questions

SIPPs Suitability a Key Question for Expats in Spain

A SIPP transfer may offer many benefits, including greater investment flexibility and exemption from capital gains and income tax; however, a SIPP is not suitable for every retirement investor and independent expat financial planning advice should always be sought before committing to a SIPP pension transfer.

Unfortunately, there are some Spain wealth management clients who can testify to the consequences of not seeking suitable independent SIPPs advice; the firm Pension Claim Consulting recently announced that it had taken on 141 claims from expats who believe they have been mis-sold a SIPP pension in the last year.

"We are handling more claims from worried expats than ever before," commented a spokesperson with the firm*.

SIPPs and Suitability – the FCA View

In 2018 the Financial Conduct Authority asked Work & Pensions Select Committee chairperson, Frank Field, to provide a list of questions that SIPP providers must answer before enabling clients to access a SIPP.

This is because the FCA had serious concerns about whether all financial advisers were giving full consideration to the twin issues of suitability and due diligence checks before recommending a SIPP. It also called on all advisers to ensure that SIPPs align with clients' investment objectives.

Fees – a Question of Transparency

It is important that all SIPP clients fully understand the long-term fee burden and charging structure. For example, does the SIPP provider impose a one-off charge or ongoing investments fees and, importantly, does it charge an annual flat fee or calculate its fee as a percentage of the total value of the scheme?

Expat Pension Transfer Advice from Blacktower FM

Blacktower FM gives full consideration to your retirement planning goals and financial circumstances before recommending any SIPP product. We also ensure that the provider is fully scrutinised so that you are not later left counting the cost.

Our advisers have helped many clients find the SIPP that is most suitable for them, particularly in cases where their cross-border financial needs are not able to be met by an employer-sponsored pension scheme.

Where appropriate, we may also be able to help clients consolidate multiple pension arrangements into a SIPP in order to improve the management and efficiency of their most important retirement asset.

For more information about how we may be able to help you, contact us today. We have offices across Europe, including in France, Germany, Portugal and Spain, all providing wealth management the Blacktower way. Discover the difference.


*Sarah Stokes, Managing Director at Pension Claim Consulting Ltd, quoted in The Express, 29 April, https://www.express.co.uk/finance/personalfinance/1120473/brexit-news-Pension-news-expats-state-pension-compensation-claim-SIPP

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