Advice re QROPS in UAE
#17
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Advice re QROPS in UAE
Very few can retire in the UAE but that doesn't necessarily mean they move back to the UK. It is true that too many are 'sold' and are not suitable but that sadly is due to the lack of regulation and compliance in the region. There are too many unqualified, commission chasing salespeople in the UAE. No question that residency in retirement in the main factor to consider and that's why I don't arrange that many.
Quite a few Brits will not retire in the UK so it could be suitable for them and there are also many non Brits who have worked in the UK for many years and accrued pension benefits who are likely to be better off with the monies outside the UK. The cost difference between SIPPs and QROPS has diminished so it's really about suitability for the individual.
Quite a few Brits will not retire in the UK so it could be suitable for them and there are also many non Brits who have worked in the UK for many years and accrued pension benefits who are likely to be better off with the monies outside the UK. The cost difference between SIPPs and QROPS has diminished so it's really about suitability for the individual.
I spotted a UK adviser in Chester on Linkedin change his profile, so I can see your firm has already got something in place for the changes.
That should raise the bar on the advice in these cases- The guy concerned is well known ( for the right reasons! ).
#18
Re: Advice re QROPS in UAE
Fortunately, from April 6th, final salary transfers for values over 30k will need to be signed off by a qualified UK practitioner- ideally working with a local pension practitioner.
I spotted a UK adviser in Chester on Linkedin change his profile, so I can see your firm has already got something in place for the changes.
That should raise the bar on the advice in these cases- The guy concerned is well known ( for the right reasons! ).
I spotted a UK adviser in Chester on Linkedin change his profile, so I can see your firm has already got something in place for the changes.
That should raise the bar on the advice in these cases- The guy concerned is well known ( for the right reasons! ).
Like I said, some of us are trying to do the right thing.
#19
BE Enthusiast
Joined: Feb 2014
Posts: 592
Re: Advice re QROPS in UAE
We have always worked with a Uk adviser on complex large balance transfers to OZ - many do not. With the 30 K limit now for defined benefit scheme transfers it now means an extra cost to the client.... but at least it will get rid of alot of idiots out there
#20
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Advice re QROPS in UAE
Hopefully your model will become the norm. Clients get far more protection, all advice is insured and more likely to be correct in the first place because of that.
#21
Just Joined
Joined: Jan 2015
Posts: 16
Re: Advice re QROPS in UAE
In my opinion this isn't a good thing. Doesn't it make sense that an individual living in, say France, receives his pension advice from a company that can provide specialist knowledge on the French system? Most UK firms can't and don't do that.
The cost of compliance in the UK pushes up the cost of advice. The quality of the advice isn't necessarily better - the industry just dedicates more resources to protecting itself from claims and litigation - not productive as far as the client is concerned.
(I have been on both sides of the fence - having advised professionally in the UK and offshore).
#22
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Advice re QROPS in UAE
A UK practitioner has to be regulated.
I am not 100% sure it will push up the advice in many cases. The UK firm will provide a fee based analysis- not hidden commission based remuneration. The costs will be clear and disclosed. If the offshore adviser also agrees a reasonable fee then the total may be a lot less that the 8% the offshore salespeople take when the money is put into an insurance bond ( plus further commission taken on the funds within the not needed insurance bond ).
I am not 100% sure it will push up the advice in many cases. The UK firm will provide a fee based analysis- not hidden commission based remuneration. The costs will be clear and disclosed. If the offshore adviser also agrees a reasonable fee then the total may be a lot less that the 8% the offshore salespeople take when the money is put into an insurance bond ( plus further commission taken on the funds within the not needed insurance bond ).
#23
Just Joined
Joined: Jan 2015
Posts: 16
Re: Advice re QROPS in UAE
I am not 100% sure it will push up the advice in many cases. The UK firm will provide a fee based analysis- not hidden commission based remuneration. The costs will be clear and disclosed. If the offshore adviser also agrees a reasonable fee then the total may be a lot less that the 8% the offshore salespeople take when the money is put into an insurance bond ( plus further commission taken on the funds within the not needed insurance bond ).
UK IFAs often make the mistake (as did I) of assuming that fee-based advice is the superior model. In fact, clients care most about getting a good service for the charges they pay. Most offshore IFAs will disclose the charges fully and openly. The few that don't are simply fraudulent.
The fact that a UK IFA must show what proportion of the overall cost he/she gets paid is frankly inconsequential. It matters more to the IFA than it does to the client.
It's true that you don't need a bond for a QROPS - but if you don't have one you will still need to pay for an investment platform, and you'll need to pay for advice separately, as per the UK model. In my experience, the UK model is markedly more expensive - and when you see the compliance processes that are involved, it's easy to see why. (I recently received a copy of a QROPS recommendation from a UK adviser that was 49 pages long - pages and pages of discussion about issues that were irrelevant to the client, purely for the sake of satisfying the regulator).
The UK industry has a good emphasis on professionalism that, to some degree, prevents cowboys entering the market. The offshore market is gradually moving in the same direction. Aside from that the UK market is stifled and corrupted by over-regulation.
#24
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Advice re QROPS in UAE
Most offshore IFAs will disclose the charges fully and openly. The few that don't are simply fraudulent.
The fact that a UK IFA must show what proportion of the overall cost he/she gets paid is frankly inconsequential. It matters more to the IFA than it does to the client.
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The fact that a UK IFA must show what proportion of the overall cost he/she gets paid is frankly inconsequential. It matters more to the IFA than it does to the client.
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#26
Re: Advice re QROPS in UAE
An offshore bond (PPB) isn't a bad thing to hold in a SIPP or QROPS but it can be set up with far lower initial commission that are fairer all round. In addition they only work if the right funds are chosen and managed on an ongoing basis and that is not always the case.
At this moment in time there are no regulatory requirements for advisers, only the firms and management. That's why so many are wide boy salespeople with little knowledge, no qualifications or experience and zero regard for their clients. I spend hours trying to pick up the pieces for bad advice.
Very much a case of caveat emptor.
#27
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Advice re QROPS in UAE
At this moment in time there are no regulatory requirements for advisers, only the firms and management. That's why so many are wide boy salespeople with little knowledge, no qualifications or experience and zero regard for their clients. I spend hours trying to pick up the pieces for bad advice.
Very much a case of caveat emptor.
#28
Re: Advice re QROPS in UAE
The owners and managers of certain companies are as greedy as their salespeople. It's appalling but I carry on fighting the good fight and doing it properly and fairly. I like to sleep at night and really don't know how some people can.
#29
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Advice re QROPS in UAE
If the insurance companies stopped paying such huge commissions up front then that would do a lot to clean up things, but I cannot see that happening anytime soon.
#30
Re: Advice re QROPS in UAE
Guess that is all you can do, the firms in question stamp on anyone questionning their business model.
If the insurance companies stopped paying such huge commissions up front then that would do a lot to clean up things, but I cannot see that happening anytime soon.
If the insurance companies stopped paying such huge commissions up front then that would do a lot to clean up things, but I cannot see that happening anytime soon.