All QROPS are not the same! All advisers are not the same!

Depending on who and where you seek advice you will find that various interpretations exist on what a QROPS can and can’t do. The rules and regulations are factual and, whilst extensive, do not preclude consideration of the following:

• A UK HMRC perspective including FSA regulation and its effects.
• Some QROPS will only deal with UK FSA authorised and regulated Independent Financial Advisers.
• The rules relating to the jurisdiction of the QROPS
• The protection afforded from the advisory firm and the QROPS jurisdiction
• Your residency status

Take time to consider your advice options carefully. Remember if taking advice:

• The UK has the most complex Global Pensions legislation – all UK advisers and firms have to be individually authorised by the FSA and be able to demonstrate ongoing competency.
• UK HMRC retains exchange of information rights forever. Whilst a QROPS does not have to report capital and income payments post 5 years non UK residency – HMRC can ask for and will receive information.
• Unfortunately things can go wrong. Take a look at www.costa-action.co.uk . Imagine explaining a grievance or complaint to a foreign solicitor and a foreign court judge about a UK Pension transferred to a foreign jurisdiction!
• The UK has consumer protection the envy of the world. Failure to receive advice from a UK FSA authorised firm will mean you are not protected by the Financial Services Compensation Scheme (FSCS).

FSCS provides protection if an authorised investment firm is unable to pay claims against it. http://www.fscs.org.uk/consumer   For example, you are protected from:

• losses arising from bad investment advice, poor investment management or misrepresentation;
• losses when an authorised investment firm goes out of business and cannot return investments or money.
• losses from classes of investment including stocks and shares; unit trusts; futures and options; personal pension plans and long-term investments.

Are offshore investments covered?

• Yes, if you received advice from an investment firm that is authorised by the FSA. The UK advice and regulatory system provides the best possible consumer protection by legislation
• Advice elsewhere should be considered very cautiously – caveat emptor.

Pension and investment values and income arising from them can fall as well as rise. This information does not constitute advice and we cannot accept responsibility for its interpretation or any future changes to UK or international law. Any advice and recommendations will be given in writing.

Gerard Associates Ltd is authorised and regulated by The Financial Services Authority