Ripples have gone through the QROPS (Qualifying Recognized Overseas Pension Scheme) industry in recent weeks, as Guernsey lost it’s QROPS status. Prior to this, Guernsey had been considered to be a premier centre for QROPS.
Whilst existing QROPS based in Guernsey will not be impacted, immediately, it places a huge question mark over the long-term viability of many other QROPS solutions.
My view is that while the QROPS solution may be suitable for some, those considering transferring their UK pension should also investigate the normally cheaper, UK regulated (i.e. no threat of ‘losing’ its status) Self Invested Personal Pension (SIPP) option.
In particular, the SIPP makes more sense for the younger client, due to its greater flexibility.
Unfortunately, many international financial advisers are unable to advise on these structures simply because they are not regulated by the FSA in the UK and as such SIPP providers will not work with them.
If you would like a qualified adviser from a UK regulated firm to contact you to discuss ALL your options (as opposed to simply the ones that they are allowed to discuss), please contact us and we will arrange for someone to get back to you.