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Suitability Key to Expat Retirement Transfers

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.

Other News

Expat financial services providers should consider MARD

TaxProviders of financial services abroad frequently find themselves undertaking work involving tax and the various cross-border issues involved with taxation.

As such, any provider of expat financial services should know that H.M. Revenue and Customs (HMRC) now has improved scope for the recovery of tax from UK expatriates.

This is due in no small part to the “Mutual Assistance in the Recovery of Debt” (MARD) agreements the UK has in place with various countries. These agreements operate across the EU and have been in place since 2012, allowing HMRC to recover taxes that are owed. Other countries signatory to MARD agreements include Norway, New Zealand and South Africa.

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