Shrek4472

Hello,

Currently trying to do a QROPS transfer and apparently I now need a letter from an FCA approved planner with the "AF3 Pension Transfer Accreditation" in the U.K. stating that I sought advice.

Having real trouble finding someone who can provide this letter, anyone been though this process and has some advice?

Regards
Paul

Tangram

Wouldn't the the person you sought advise from be able to provide you with a letter to say you sought advise from them ?

Shrek4472

Unfortunately not as they are based in Canada, with the Scotiabank, and are not accredited under the FCA in the UK.

mjwalker007

Hi Paul,


Due to new rules that were introduced in April 2015, you will find it almost impossible to find a UK advisor who will just provide you with a letter saying they have provided advice, as you no longer live in the UK and you are transferring your pension to Canada. A UK advisor is not qualified to advise on Canadian pension schemes so therefore cannot advise on the merits of a transfer from a UK pension directly to a Canadian pension.


The problem with the new rules introduced last year , is that they do not take into account people that no longer live in the UK and therefore this has caused an issue. The FCA are aware of the problem this is causing for Ex Pats but at present are unwilling to make any further rule change. They have told me it is something they are "looking in to" .


It is important to stress that this new rule change does not apply to all types of pensions, it only applies to defined benefit pensions with a transfer value of over £30,000 or to older pensions that may have a guarantee attached. The majority of pensions are unaffected and can be transferred to Canada without advice required from a UK based advisor.

However, there are still ways in which you can transfer this type of pension to Canada and we have partnered with a large UK based FCA qualified advisory firm to provide our clients with the ability to transfer their pensions to Canada if they have the type of pension that falls under this new requirement.

If you are based in BC or Alberta please do not hesitate to contact me.

Steven.Vu

Yea..... in most cases, your UK pension administrator would normally ask you - the client, to obtain independent tax advice from an FCA approved provider (generally based in UK) and that advice is usually fee based- different for every advisor. And the reason for this is because the receiving institution - QROPS transferred to Canada, might want to make sure for your own sake that there won't be any tax implications and liability associated with moving your pension abroad.

A word of advice is perhaps to personally call your UK pension administrator during their local office hours to see if they have other options for you...

Timbits4eva

For those in the know, I'm moving to Canada soon and hold AF3 (FPFS), and plan to relearn the Canadian equivalents (CFP).

Is there much of a market for UK DB pension transfers in places like Toronto?

I hadn't expected the AF3 to be much use in Canada!

Steven.Vu

I think it would be always a nice thing to have more credentials and having CFP definitely does help in a time where competition in finance is high...

For UK DB pension transfers, it depends on whether there's a lot of people from the UK settling their lives in Toronto, and more importantly, in search of what you're offering.

Hope that helps a bit...

mjwalker007

Hi Timbits,


Holding the AF3 will certainly help you in regards to looking for employment but as a qualification wont be able to be used in Canada. I was an independent advisor in the UK for over 12 years when we moved to Canada, but had to re qualify and sit all of the Canadian exams to be able to advise in Canada. The moral of the story is that being in the business will help when your sitting the exams this side and with prospective employers, but doesn't really fast track you in any way.


There will be a market for DB transfers in Toronto however this has become more of a niche market since the UK imposed the new rues for DB schemes with a transfer value of over £30 k.