The effect of this is that expats who seek advice abroad regarding their pension must also seek advice from a UK professional authorised to do so.
Now the Association of British Insurers, together with a number of wealth management professionals, has called for the government to abolish the advice rule and instead replace it with a guidance session, saying that any such move would also reduce the fees burden on consumers.
The survey questioned nearly 300 advisors from across Europe, Asia, the Middle East and Africa and discovered significant resistance to the new rules, which require consumers to pay an additional fee to a UK adviser, while also raising concerns that having two advisors could muddy any potential liability issues.
“A surprisingly high number of overseas advisers [69%] have already successfully linked up with UK adviser firms but the number of advisers who have faced challenges is alarming,” commented a spokesperson with Old Mutual.
“It is imperative that clients are not detrimentally impacted, so we would welcome a review by the Department for Work and Pensions.”
If you are unsure about QROPS rules, contact Blacktower for bespoke advice regarding your personal situation.