Independent Financial Adviser

[Abi&Dan]

A lot of people have asked about advice for deciding whether or not to transfer their UK pension schemes to Oz.

It's a real minefield and IMHO not something that should be undertaken without advice from a qualified professional. If you want to speak to someone in the UK before proceeding it can be hard to find an IFA who knows the vagaries of Oz pension law.

I have just spoken to someone at Prime Advice regarding one of our members taking a TV to Oz.

On my questioning he confirmed he was an IFA and they have offices in both the UK and Oz and they specialise in these Oz transfers.

Please note this is not a personal recommendation as I have not yet been in a position to find someone to use - it's just a name as I know they specialise in these transfers.

If you're interested check out their website Prime Advice UK - Transferring UK pensions to Australia or email them at pensions@primeadviceuk.com. The IFA I spoke to was Peter Almond and he was a nice guy.

If you then decide to use them, make sure you get written confirmation of their method of fees (fee or commission based) and exactly what they will do for the cost they quote.

Anyway, hope this helps some of the people stuck on whether to make that move of money.

[BullcreekBob]

G'day

I've looked at their websites but that doesn't really qualify me to comment on how good they are.

In my mind an "Independant" financial advisor is one who is not aligned to any particular company or product set, but rather can advise me on all options. If the only way an advisor gets paid is if you buy the only product he is aligned with, I suspect he's not really independant.

The only way to get true independant financial advice is to pay for it. That way the advisor makes money based on his skill and knowlege, rather than his ability to sell you a product.

[ali]

We paid for in UK and used prismXpats - their advisor was trained both in UK and Aus.

Ali

[Abi&Dan]

Originally Posted by BullcreekBob

In my mind an "Independant" financial advisor is one who is not aligned to any particular company or product set, but rather can advise me on all options. If the only way an advisor gets paid is if you buy the only product he is aligned with, I suspect he's not really independant.

The only way to get true independant financial advice is to pay for it. That way the advisor makes money based on his skill and knowlege, rather than his ability to sell you a product.

You're right about the definition of an IFA - but quite a lot work on a commission basis rather than fee basis as almost all providers factor commission into their products (however, if you're with a fee based IFA you should be able to get improved allocation/rates as you wont be paying the commission). That's UK providers but I imagine Oz ones are not dissimilar (or at least I hope not otherwise I could have trouble when I'm working there!!). In the UK an individual must be registered with the FSA to give advice and they must declare themselves to either be independent or a tied agent x

[Liam]

As an expat settled in Australia who has managed the transfers from a number of UK Pension Schemes for clients I would offer the following General Advice.

You have 6 months after arriving in Oz to transfer your UK Pension before you are up for any tax consequences. After that, you pay tax only on the growth in the value of your pension from the date you arrived until you actually transfer the pension as long as your use a Qualifying scheme (called QROPS) and there are now many of these available. You can even set up your own Self Managed Superannuation Fund (Pension Fund) and apply for QROPS status if you want to manage your own investment portfolio.

Consider your options and why not wait until you are over here to make the final decision if you are worried about he finality of your decision. Do not take these decisons lightly and take time to learn about the new system to which you are moving your money. Get specific financial planning and accounting advice for your own circumstances.

Generally I would suggest that you at least write to your UK Pension Fund and get a current value before you leave. Also ask them for a point of contact with whom to can get in touch with should you decide to Transfer your pension to Australia.

If you have married make sure you have notified them and proven the change of name before leaving the UK as many ask to see your Original Marraige Certificate (and I for one would not be keen to send that across the world!).

Best of luck...see you when you get over here!

Liam Shorte B.Bus DipFS(FP) AMC
Email: liam.shorte@genesyswealth.com.au
Authorised Representative
Representative No. 278214
Genesys Wealth Advisers
ABN 20 060 778 216•AFSL No. 232686
Principal Member of the FPA

Pro-Active Advice Pty Ltd
Suite 40, 8 Victoria Ave, Castle Hill, NSW 2154
P. O. Box 6004 BHBC, Baulkham Hills, NSW 2153
Tel: +61 2 9634 1755
Fax: +61 2 9680 3750
Mobile: +61 413 936 299
Skype: shorte-in-oz
MSN Messenger: liam.shorte@genesyswealth.com.au

[JJ.]

That 6 months thing is a little worrying...

My visa was granted towards the end of 2007. As you know, your visa has to be "kicked in" by a certain date, which in my case was November 2008. At that time we thought that might be pushing it (we're not emigrating until mid November this year), so in order to perform said visa "kicking in" I went to Sydney in February 2008. Our permanent arrival won't be until November 2008 as I said, but does the 6 months start counting from February when the visa effectively started and I became an Australian resident (even though I don't actually live there yet), or does it only start on permanent arrival?

EDIT
I might have answered my own question...

Transfer Requirements

• The applicant must have made a permanent departure from the UK with no intention of returning there to work or retire.
• The individual must be employed or self-employed in Australia.
• The person must have Australian residency for tax purposes.
• No part of the UK Benefit is to have commenced paying a pension.
• Payment is to be made directly from the UK scheme to an APRA approved Australian superannuation fund.

The bit in red suggests I might be okay, as I haven't made the permanent move yet. ANyone know for sure?

[cole]

Don't use Prism Xpat whatever you do. They took over a year to transfer my pension, lost the cheque twice in the process & didn't even notice - After all this they still believe they have done a good job unbelievable....I'd hate to see what happens when they have a bad one - also they ain't cheap either...