Personal Pension  

Ex-pat advisers raise pension transfers concerns

Ex-pat advisers raise pension transfers concerns

A total of 38 per cent of international advisers who carry out pension transfer business believe a review of pension transfer rules is required, according to Old Mutual International.

The firm surveyed 289 advisers from a number of jurisdictions including the UK, Europe, Asia, Middle East and Africa last October, finding only 20 per cent of advisers did not think a review was required and the remaining 42 per cent of advisers were not sure.

Final salary pension transfers must be accompanied by appropriate independent advice from someone who is authorised by the UK’s Financial Conduct Authority to carry out pension transfer business.

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A number of overseas advisers have linked up with advisers in the UK for their pension transfer business, although the UK adviser will be the person responsible for the pension advice.

Old Mutual International’s research showed that 56 per cent of those who advise on pension transfer business have faced challenges with the requirement.

The firm found the biggest challenge was clients not wanting to pay an additional fee to a UK adviser.

International advisers also raised concerns over liability and who would be to blame if things went wrong.

A total of 69 per cent of international advisers told Old Mutual Wealth they have linked up with UK advisers.

In addition, 14 per cent of advisers said they have not found a UK adviser firm to link with yet, but will keep looking and 9 per cent of advisers have decided to stop writing this type of business.

Jon Greer, pensions technical manager at Old Mutual Wealth, said: “It is imperative that clients are not detrimentally impacted, so we would welcome a review by the Department for Work and Pensions.”