Getting The Right Financial Advisor For Your QROPS Transfer
08.09.2011

If you’re an expat or you’re planning on moving abroad, you may be considering transferring your UK pension into QROPS – a QROPS can be a great way to enjoy enhanced financial benefits during your retirement, but it’s absolutely essential that you find a financial advisor with experience in the QROPS market in order to make the best decisions for your pension funds.

No matter where in the world you’re located it should be relatively easy to find a financial advisor who has experience in the QROPS market. Guardian Wealth Management are QROPS experts and we have offices all across Europe and the Middle East, making it easy for you to access a professional financial advisor who can help you to source the best QROPS for your needs. Unfortunately however, not every financial advisor conducts themselves to the same high standards as ours do. Hopefully you’ll find a financial advisor who is regulated and controlled by the relevant financial services authorities, but unfortunately there are some QROPS advisors around who are not as credible and trustworthy as others. Here is a brief guide to help you spot the QROPS sharks and avoid falling into their hands.

Good QROPS Financial Advisor Or Bad?

The first warning sign that your financial advisor may not be credible is if they ask you to hand over money before they have actually done any work for you. If your financial advisor is pressuring you to make a payment before they have identified or sourced a QROPS for you be very wary before continuing to use their services.

As you’re probably already aware, QROPS are available from a wide variety of different jurisdictions. If your financial advisor is focusing on just one jurisdiction or a single QROPS supplier then you need to question why this is. It’s likely that they have their own financial reasons for pushing these particular products your way – this means that they’re not acting in your best interests, but rather their own. A good QROPS financial advisor should be committed to finding the very best QROPS solution for your individual circumstances – Guardian Wealth Management are ‘whole of market’ advisors, meaning that we don’t restrict the QROPS products that you can access, but rather look across the entire QROPS marketplace in order to source the very best solution for your needs.

Other QROPS Financial Advisor Warning Signs To Look Out For

A more unscrupulous financial advisor may only be interested in working with clients that will bring them big commissions. If your QROPS consultant tells you that your pension fund is too small to bother transferring into QROPS it’s worth seeking a second opinion from an alternative financial advisor, as recently there have been more QROPS released onto the market that are suitable for smaller pensions.

A good financial advisor will clearly discuss the charges you will incur by setting up a QROPS with them – if they can’t tell you this or evade the question, it’s probably a good idea to ditch your financial advisor and find someone else. An honest advisor, working within the regulations, should be clear about costs and commissions – so if they can’t answer your questions clearly, pay heed to the warning bells.

Try to make sure that the firm has relevant QROPS experience and appropriate exams – ask to see copies of certificates. If you are transferring an occupational scheme then you should receive a TVAS (Transfer Value Analysis System) report, these in-depth reports confirm if it is in your best interests to proceed, if you don’t receive this the advice cannot be considered to be expert or suitable.

All QROPS, regardless of their jurisdiction, must abide by the same rules. If you’re offered a QROPS that sounds too good to be true, think twice before committing. It’s important to bear in mind that if you fall foul of a bad financial advisor who breaks the QROPS rules, you may find that it’s you that ends up paying the price in terms of fines and penalties levied by HMRC.

If you wish to speak to a qualified QROPS financial advisor, contact us now, or download our free QROPS guide.

Our financial advisors can also help with any other aspect of wealth management and financial planning.