Warning on handling UK pensions
The UK’s Personal Finance Society has written to its planner members pointing to opportunities flowing from changes to the regime covering pension transfers to so-called Qualifying Recognised Overseas Pension Schemes (QROPS) but warning that specialist skills are required.
The chief executive of the Personal Finance Society, Fay Goddard, said the introduction of the QROPS legislation provided opportunities for advisers and their clients but that advising on QROPS required a specialised level of knowledge and expertise.
“We would not anticipate all advisers being in a position to advise in this specialist area,” she said. “Non-expert advisers should refer any clients for whom QROPS might be suitable to a QROPS specialist.”
Goddard’s statement has come at the same time as some UK-based planners have warned that Australian-based advisers need to better understand the UK regime before handling matters for clients with UK pensions.
As well, the Personal Finance Society has expressed concern that the UK Government can withdraw recognition from a QROPS without notice or appeal.
It said such action might result in harsh and even penal tax charges in relation to individuals who had chosen that particular QROPS.
AUTHOR
Mike Taylor
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