qrops pension

dunstonh

Any real IFAs think of how this can be justified?

No. However, most real advisers could tell you stories of a number of dodgy scams doing the rounds at the moment. Sadly, the FOS doesnt appear to be armed to deal with them based on my experience due the way they tend to use multiple companies to do different bits.

DaveMcG

Woodface wrote: »

You also miss my point about underfunded schemes. My point is that many will offer generous transfer values to offload the liability.

So let me get this straight. Your assertion is that a scheme is underfunded and to resolve this problem it pays a "generous" (is that an actuarial term?) transfer value, thus exacerbating the underfunding problem?

Aegis

Kit_Carson wrote: »

I have seen evidence today of an unregulated cold calling firm transferring a fund of less than 30,000 pounds into a Harbour QROPS. The investor lives in the UK.
Any real IFAs think of how this can be justified? The QROPS fees in the first year are 3% of the fund and I have not seen where the money was invested yet.

The only way it could possibly be justified is if that person was about to retire and the tax treatment of a UK pension was materially different in their current country of residence to another jurisdiction with a suitable QROPS. that's not common by any stretch of the imagination, and it's very difficult to see how any amount of research on that could be justified for a £30k pension.

Kit_Carson

Aegis wrote: »

The only way it could possibly be justified is if that person was about to retire and the tax treatment of a UK pension was materially different in their current country of residence to another jurisdiction with a suitable QROPS. that's not common by any stretch of the imagination, and it's very difficult to see how any amount of research on that could be justified for a £30k pension.

Thanks, my thoughts exactly. What is this firm in Malta doing accepting this business?

Aegis

Kit_Carson wrote: »

Thanks, my thoughts exactly. What is this firm in Malta doing accepting this business?

Well, the firm in Malta may be either taking the business because they believe that they are offering a good deal, or alternatively may be deliberately advertising themselves as suitable for all knowing that they're not on the hook for the advice.

In any case, the real blame is on the firm that is looking to actually advise on such transfers if they aren't suitable.

Kit_Carson

Aegis wrote: »

Well, the firm in Malta may be either taking the business because they believe that they are offering a good deal, or alternatively may be deliberately advertising themselves as suitable for all knowing that they're not on the hook for the advice.

In any case, the real blame is on the firm that is looking to actually advise on such transfers if they aren't suitable.

In this case there was no adviser, the unregulated firm cold called someone and sent round a courier to collect the application forms.

Aegis

Kit_Carson wrote: »

In this case there was no adviser, the unregulated firm cold called someone and sent round a courier to collect the application forms.

Highly dodgy then...

dunstonh

Kit_Carson wrote: »

In this case there was no adviser, the unregulated firm cold called someone and sent round a courier to collect the application forms.

All the classic signs of a scam.

unregulated firm. Cold call and courier.

jamesd

Kit_Carson wrote: »

sent round a courier to collect the application forms.

Oh dear. That's another of the classic signs of a scam, getting it done before the person has time to check on the facts and have second thoughts, or react before the money is gone if they realise. Bonus points for the scam score if original documents are taken and no copies are left.

You should urgently contact the current pension provider and tell them to block the transfer because you believe you may be a victim of a pension transfer scam, then contact the FCA line dunstonh mentioned earlier. If you're fortunate either the money will not have left your existing pension or the FCA will be able to recover it by seizing accounts in cooperation with the National Crime Agency before it's unrecoverable. If you're lucky your existing pension provider will already know that the destination is a likely scam and may block it themselves based on intelligence sharing between firms and the FCA but you should not rely on this.

Act quickly. There's a limit to how long the money is going to be recoverable.

Kit_Carson

Thanks, but it is too late. It was not me that was affected. Currently, I am trying to find out what happened. Not sure the FCA will do anything, it is not a regulated adviser that was involved. The National Crime Agency, in my experience is not equipped to deal with this. The QROPS provider is on the HMRC recognised list.

From April, there will be a huge wave of this sort of thing.