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FCA Advice

2015 Legislation

In 2015 the UK Government introduced legislation, so that all advice on transfers with “Safeguarded Benefits” over £30,000, has to be provided by FCA Regulated Firms.
This includes all Defined Benefit Schemes.

This was very welcome legislation, as it goes some way to preventing some of the problems highlighted on both our QROPS Benefits and QROPS Pitfalls page. Full details of what our FCA advice process looks like, and how this differs from the Offshore Model can be seen on our “What we do” page.

Impact of the Legislation

For non-residents, this has not had the full impact the Government has intended, as Offshore firms have looked at ways to get around this.

These include getting FCA firms to provide a “Transfer Value Analysis Report”, which is a very small (and often irrelevant) aspect of the overall process of justifying a transfer.

Some Larger Offshore firms have a small UK presence, and are using this to set up the QROPS shell, in effect acting as a conduit for the Overseas firm to give Unregulated investment advice.

Our View and Stance

In theory this has given an opportunity for UK firms to work with Offshore firms, and we have been approached by many.

We have taken the decision that we will only work with advisers regulated in the UK by the FCA, or those in Australia regulated by ASIC. That is unless the Offshore Adviser introducers a client to us in full.

We will not act as a conduit to assist an Overseas Adviser in providing costly and Unregulated Investment advice.

Overseas advisers have lobbied the Government complaining that this rule change has led to a double fee scenario i.e. a UK adviser is required for the pension advice, with an Overseas Adviser required for the investment advice. We do not see it this way, and can offer both parts without the excessive and hidden costs often associated with Offshore Advisers.

We are in a prime position to overcome this, by providing both aspects of the advice in a clear and transparent way. We fully understand UK pensions through years of experience and examinations, and we also specialise in the specific requirements of non-residents.

We would fully welcome additional legislation, whereby all transfers need to be provided by FCA Regulated firms.

For more information on QROPS please contact Cradle using the form below.

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2015 Fund Awards -
“QROPS Advisor of the Year - UK”

Cradle Overseas Pensions Ltd is authorised and regulated by the Financial Conduct Authority. FCA number 626364. Registered office: 2 Petty Lane, Derry Hill, Calne, Wiltshire, SN11 9QY. Registered in England and Wales, Company number: 7273148.

The guidance provided within this website is subject to the UK regulatory regime.


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