Australian advisers accused of scaremongering on UK pensions
Some Australian financial planners and superannuation funds have been accused of needlessly worrying British pension holders on the basis of misleading claims that United Kingdom pension transfers will cease on June 30 this year.
The managing director of British company Montfort International, Geraint Davies, said the misinformation had flowed from interpretations being applied to the 2006 Federal Budget removing the superannuation Reasonable Benefit Limit and the superannuation withdrawal tax.
Davies said the interpretation flowed from ambiguous wording that suggested the British Government would not allow transfers if the benefits were to be paid tax free in Australia.
He said some Australian advisers had been procuring business by “carefully contrived advertising campaigns to panic former UK residents and nationals into transferring their pension funds to Australia”.
Davies said that many migrants and former UK residents had been led to believe they were at the “last chance saloon” and that UK Revenue was about to slam the door shut.
He said this differed from information emanating from the UK Tax Office with the British authorities making clear that it had never intended to pursue a policy that would see UK pensions transfers banned.
“The legislation was, I agree, ambiguous,” Davies said.
“And its ambiguity was enough for some advisers and superannuation schemes to seize the opportunity and make misleading claims.”
AUTHOR
Mike Taylor
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.
