Pensions Advice: Good – Pensions Transfer Advice: Bad
The FCA examined the retirement transfer advice of 18 firms and although it conceded that its analysis was not representative of the whole market, it stated that the findings were indicative of a market in which advice may sometimes fall short of an acceptable standard.
“Our assessing suitability review in 2017 showed that around 90 per cent of advice on pensions and investments was suitable,” commented an FCA spokesperson, adding that it was “unacceptable” that advice given specifically on pension transfers “should persistently remain at such a low level in comparison to investment advice. We expect firms to take prompt action on our findings and to check that their business model and advice processes do not exhibit similar failings.”
The truth is that for many clients, particularly those who reside in the UK, there may be little to no benefit in switching from a Defined Benefit Scheme; in the case of an expat, an expat retirement transfer is more likely to be suitable, although of course, what is suitable for the client entirely depends on their circumstances and long-term financial goals.
Furthermore, the FCA advised that making a retirement transfer should never be considered as the default position for a financial advice firm, adding that those which failed to review or amend their business models in light of the concerns would face serious consequences.”
Pensions Advice from Blacktower FM
If you are considering whether an expat retirement transfer may be suitable for you and your circumstances, we can help.
Blacktower is a fully regulated firm and has international pensions transfer specialists who can help you decide whether a transfer may be suitable and, if so, whether a SIPP or QROPS is appropriate to your situation. For more information, contact us today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Managing your finances is not an easy task, and many people worry whether they’ll have enough money to last them through retirement. Most people are likely to need a helping hand from a financial adviser, and a new move from the government will help make receiving this advice easier than ever before.
If you live in Spain, or are thinking of moving to Spain for your retirement, it is essential that you seek expat financial advice in order to give you the best possible chance of successfully protecting and growing your wealth.