Pensions transfers and Global Qrops Ltd

[thelowsinAus]

Hi guys,

As we are in the process of organising removals, sorting accommodation, schools for the kids house let, etc etc, we have also been contacted by Global Qrops Ltd through Anglo Pacific ( who we are not moving with). They have given us, or me so far an analysis report on my pensions in relation to transfer to Aus. All very well until you see the sums and fees involved in transfers etc which generate thousands for the company along with there counterparts. Has anyone had dealings with these guys and is it a rip off? or just more money to say goodbye to? Not something we have really taken notice of as we are far too busy organising our lives!

 

Any info as to whether these sort of things are a good idea or just leave well alone till we are settled in Aus.

 

Cheers.

 

Rich.

[TomJonesDad]

I started down the same road with a similar company and was planning to go ahead until I took some advice from a firm in Oz. Basically, once you transfer your pension out it cannot be transferred back to the UK so you have to be damn sure you are staying. Whilst it is fully our intention to stay, who knows how things will pan out. So from my perspective, I'm happy to leave it until we are settled in Oz. I know there are tax implications for not transferring it within 6 months of arriving but was told there are "ways and means" of minimising this. I think the "not being able to transfer it back" bit was the one that clinched it for me.

[littlegreenman]

Hi guys,

As we are in the process of organising removals, sorting accommodation, schools for the kids house let, etc etc, we have also been contacted by Global Qrops Ltd through Anglo Pacific ( who we are not moving with). They have given us, or me so far an analysis report on my pensions in relation to transfer to Aus. All very well until you see the sums and fees involved in transfers etc which generate thousands for the company along with there counterparts. Has anyone had dealings with these guys and is it a rip off? or just more money to say goodbye to? Not something we have really taken notice of as we are far too busy organising our lives!

 

Any info as to whether these sort of things are a good idea or just leave well alone till we are settled in Aus.

 

Cheers.

 

Rich.

 

We've done our QROPS transfers ourselves without any help. It wasn't rocket science at all. The only "difficult" thing was to chase up the UK pension providers to stop dragging their heels.

 

Three important points to consider:

-You can't transfer the money back to the UK. So be sure you want to remain in Oz for good.

-Get it done within six months of relocating to Oz to avoid any tax issues. Don't worry about the exchange rate since you can't wait that long and have no influence over when exactly the money is converted.

-Be organised and get clearance on the required steps early.

[Dan Collins]

Hi guys,

As we are in the process of organising removals, sorting accommodation, schools for the kids house let, etc etc, we have also been contacted by Global Qrops Ltd through Anglo Pacific ( who we are not moving with). They have given us, or me so far an analysis report on my pensions in relation to transfer to Aus. All very well until you see the sums and fees involved in transfers etc which generate thousands for the company along with there counterparts. Has anyone had dealings with these guys and is it a rip off? or just more money to say goodbye to? Not something we have really taken notice of as we are far too busy organising our lives!

 

Any info as to whether these sort of things are a good idea or just leave well alone till we are settled in Aus.

 

Cheers.

 

Rich.

 

You seem busy with the move and perhaps pensions weren't on your mind.

 

TomJonesDad makes a good point about his experience. You really need to know that you want to live out your days in Aus. Sure, the 6 month window is attractive and I suppose you could equate the loss of tax savings with the fees you'd pay the 'pension specialist'. Nonetheless, if comes back to the dilemma if you want to return at some stage, an 'if' I know, you may have complications in bringing your pension back or being unable. You'd soon forget that tax you 'saved'. Sometimes accepting the tax for the option of more time can work to your favour. No-one knows when and how currency will move, but I gather you have a few years til retirement anyway. Given you might need a couple of years to really know you'll stay, maybe that tax is worth 'paying'.

 

Just a thought....

 

Yes, you can do this yourself, but there are disadvantages to be examined and potential problems later on avoided. Being good at paperwork is very important, but so is knowing the risks and implications and strategies is essential. For example, as a UK IFA, I come across many pensions with guarantees that you don't see any more in Australia. This might apply to you and for this reason, it is very important to have advice that isn't contingent on completing a transaction. You do need to pay for independent advice, but shop around when you're ready to do so. You've every right to ask, what are my other options, what are the risks, what will you do for that fee, and for how many hours work.

 

Hope that helps.

[Andrew from Vista Financial]

Hi guys,

As we are in the process of organising removals, sorting accommodation, schools for the kids house let, etc etc, we have also been contacted by Global Qrops Ltd through Anglo Pacific ( who we are not moving with). They have given us, or me so far an analysis report on my pensions in relation to transfer to Aus. All very well until you see the sums and fees involved in transfers etc which generate thousands for the company along with there counterparts. Has anyone had dealings with these guys and is it a rip off? or just more money to say goodbye to? Not something we have really taken notice of as we are far too busy organising our lives!

 

Any info as to whether these sort of things are a good idea or just leave well alone till we are settled in Aus.

 

Cheers.

 

Rich.

 

 

Hi Rich

 

 

I wouldn't threat too much about having to rush in to anything as a transfer can be carried out at any time. Transferring a Pension should be considered once you feel settled into life in Australia and that it is your intention to remain.

 

Most UK companies push the 6 month rule and this is really just a hook to get business secured before people are in Australia and out of reach. The 6 month rule is really not as onerous as it sounds and in any event if there is tax to pay this can usually be mitigated.

 

 

Transferring a UK Pension is something that when ready should be considered as there are many benefits over the UK system of having retirement monies in Australia however that said it is not right for everyone.

 

 

You should transfer Pension benefits for the right reasons and only after you are fully informed of all the implications involved, a transfer should not be made solely based on bringing it over within 6 months to avoid tax.

 

I would suggest that when you are ready to look at this you seek professional advice from an Adviser who is licensed and regulated in Australia and that is familiar with both the UK and Australian systems.

 

Please feel free to ask any further questions around this subject on the dedicated PIO Pension forum found here http://www.pomsinoz.com/forum/pension-transfers-ask-vista/

 

One question Rich, what visa will you be coming over to Oz on, perm or temp?

 

Regards

 

Andy

Edited September 22, 2012 by Andrew from Vista Financial

[Tarby777]

If you don't fancy doing the paperwork / legwork yourself and want a professional to do it for a fixed fee rather than a %age of the pot, I can recommend John Horvath at Gold Vision in Perth. His is a transfer-only service - that is, no advice... no comparison of the benefits of your existing UK pensions vs the super fund you're planning to do the QROPS transfer into. So if you've made up your mind to transfer everything over, and you don't want the hassle of doing it yourself, give him a shout. He has a deal that is something like $750 for 5-6 policies. He provides all the figures you need to supply to your super fund, so that (if you've been in Oz longer than 6 months when you do the transfer) they can pay the tax on the growth at 15% rather than at your marginal rate.

[Andrew from Vista Financial]

If you don't fancy doing the paperwork / legwork yourself and want a professional to do it for a fixed fee rather than a %age of the pot, I can recommend John Horvath at Gold Vision in Perth. His is a transfer-only service - that is, no advice... no comparison of the benefits of your existing UK pensions vs the super fund you're planning to do the QROPS transfer into. So if you've made up your mind to transfer everything over, and you don't want the hassle of doing it yourself, give him a shout. He has a deal that is something like $750 for 5-6 policies. He provides all the figures you need to supply to your super fund, so that (if you've been in Oz longer than 6 months when you do the transfer) they can pay the tax on the growth at 15% rather than at your marginal rate.

 

 

 

Hi Tarby

 

I wonder does this also include a Statement of Advice and advice on an appropriate fund and the investment strategy.

 

Even for execution only I cannot see how a Professional can be charging this amount considering the time involved.

 

In any event I think that the other thread you have started http://www.pomsinoz.com/forum/pension-transfers-ask-vista/163469-hrmc-tax-qrops-transfers.html highlights the danger of not taking advice on whether a transfer should be made in the first place, it only takes one slip along the way somewhere and this could prove to be very costly.

 

I hope my response to the other thread helps you out.

 

Regards

 

Andy

[Dan Collins]

Oh, my last post seems to have gone missing????? What a shame.

 

I did want to point out in the email in response to Andy's comment that there are many Australian based businesses that push the 6 month rule too. Only last week someone from Perth posted a bulletin on LinkedIn. This isn't a good look for the industry, though will give credit to you Andy, as you often recommend the opposite - chill. I love New Zealand, but could I say I want to live there permanently within 6 months of settling. Even after 10 years I still might be a little homesick.

 

Tarby777

 

You make a valid point on fixed fees though. With a % based method of fees, a person with £100,000 pays more than a person with £75,000. Whilst there is a higher professional indemnity risk for the adviser, if they are only dealing with one pension provider, you've got to ask is that fair for the same work done? This will depend on how the % based fee works, but for others reading, ask what do you do for that extra cost, and how roughly how many hours will it take of your time? Time based charging is becoming more popular in the UK, as the industry moves to banning commissions January 1 2013.

 

I do have real concerns though about the 'non-advice' component of the service. This is where a client goes to an adviser and says 'I want this done and I don't want your opinion on it'. Unknown to the client, there could be implications of which could harm them in the future or even right now. I echo Andy's comments that this can be costly and if down the line you're unhappy, you may have little recourse to complain or be compensated. A pension transfer can appear a transactional thing, but the risks make it worth getting advice. Good, impartial advice will cost.

ASIC's own website (FSA equivalent in Aus) says 'A duty for financial advisers to act in the best interests of their clients, subject to a 'reasonable steps' qualification, and place the best interests of their clients ahead of their own when providing personal advice to retail clients. There is a safe harbour which advice providers can rely on to show they have met the best interests duty. This is intended to be the minimum standard of compliance with the best interests duty.' A prudent adviser would ask themselves if they could place their client's interests ahead of their own by not doing this transaction. http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Future%20of%20financial%20advice

 

thelowsinAus

 

Getting back to the advice from the company first mentioned. A high cost service may seem unreasonable, but so too can the outcome of a very low cost service. On appearance, the first company has some highly skilled people (according to the website) with one even qualified to advise on defined benefit schemes. That's good if you have such a pension, as the FSA requires higher standards on people who advise on such schemes. I don't know these people by the way. I would expect they have an Australian adviser who is paid to complete the advice on the receiving fund, as a UK adviser cannot provide advice on an Australian super (pension) fund. At least this way you have two sets of professional opinions reaching the same conclusion, as well as two sets of professional indemnity insurance and two financial services compensation schemes (UK & Aus) available if something went wrong with the advice. Shop around when the time is right and ask questions on how they arrive at the charges. Its your money after all.

 

Hope that helps.

[thelowsinAus]

Hi guys,

As we are in the process of organising removals, sorting accommodation, schools for the kids house let, etc etc, we have also been contacted by Global Qrops Ltd through Anglo Pacific ( who we are not moving with). They have given us, or me so far an analysis report on my pensions in relation to transfer to Aus. All very well until you see the sums and fees involved in transfers etc which generate thousands for the company along with there counterparts. Has anyone had dealings with these guys and is it a rip off? or just more money to say goodbye to? Not something we have really taken notice of as we are far too busy organising our lives!

 

Any info as to whether these sort of things are a good idea or just leave well alone till we are settled in Aus.

 

Cheers.

 

Rich.

The guys at Global have explained the implications thoroughly, so at present we are leaving the pension in the UK in a sipps to allow us to move it across quickly as and when we decide it will be worth moving it. Thanks for your input below :-)