Pensions  

Q: What are the pros and cons for advisers?

This article is part of
Guide to Qrops

According to Keith Boniface, marketing director of Brooklands Pensions, the pros for advisers include that they will also continue to receive trail income from such accounts.

By acquainting themselves with the structures, Mr Boniface said they will also be able to add further strings to their bows in terms of areas of advice/expertise offered to clients; an approach that is highly consistent with the introduction of the Retail Distribution Review (RDR).

The cons are really around getting the advice wrong.

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Mr Boniface said Qrops and Qnups are sophisticated areas of financial planning, often involving complex considerations and advisers should therefore ensure they are well-versed in the sector before giving advice.

Advisers should also ensure they choose a suitable provider with in-depth pension knowledge and should be wary of providers who have a limited product and jurisdictional offering, according to Mr Boniface.