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Steve Elliott

QROPS funds for 55+

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Hi there. I read recently that there are potentially other retail funds other than the IVCM expatriate fund, in the pipeline for QROPS approval. For someone not particularly keen on an SMSF, I'm interested in other options. It looks as though IVCM have quite high penalty fees, which are calculated as a % of the fund balance which seems a little unfair given the paperwork associated with a $300k balance would not be any less than a $100k fund, but the fees would be 3x higher!

I'd appreciate any thoughts!


Steve Elliott

Registered Migration Agent (MARN 1804671)

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12 minutes ago, Red Phone Box said:

Hi there. I read recently that there are potentially other retail funds other than the IVCM expatriate fund, in the pipeline for QROPS approval. For someone not particularly keen on an SMSF, I'm interested in other options. It looks as though IVCM have quite high penalty fees, which are calculated as a % of the fund balance which seems a little unfair given the paperwork associated with a $300k balance would not be any less than a $100k fund, but the fees would be 3x higher!

I'd appreciate any thoughts!

Hi there back 🙂

When you say high penalty fees.....do you mean the QROPS exit fee levied progressively reducing over 1-3 years etc?


Financial Adviser (FPA Member AFP ®) Specialising in UK Expat Advice and Pension Transfers / AR-322874 /AFSL-234951

SMSF Accredited Adviser / UK SIPP Authorised Adviser 

Director  - Vista Financial Services – www.vistafs.com.au 08 8381 7177

 

Please note that my advice is general advice only and professional financial advice should be sought for your own personal situation.

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Thanks for the quick reply Andrew.

No, I am referring to the penalty fees which IVCM says they may charge should funds be transferred out within a three year window from when the initial investment is received from IVCM. It was explained to me that many people were initially transferring funds to the fund but were transferring out into a SMSF fairly quickly and then closing down their IVCM account. I'm just wondering if their are any other choices other than establishing an SMSF? Thanks Andrew.


Steve Elliott

Registered Migration Agent (MARN 1804671)

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No problem.

Yes I think we are referring to the same thing, the QROPS recovery (exit) fee (page 5 https://cdn.sargon.cloud/AE/13395aaf-b71c-4826-9938-9ad0839bf2d5/Product Disclosure Statement.pdf ).

I too understand that this is why they have levied it (people using them effectively) and actually agree with you in relation to why it is percentage based rather than a flat fee.

To answer your question at this stage I do not believe there are any other public offer superannuation funds that are QROPS.

However if you do not wish to establish a SMSF and instead use the AESF Super this (exit fee) shouldn't be an issue anyway should it?

Regards

Andy

 


Financial Adviser (FPA Member AFP ®) Specialising in UK Expat Advice and Pension Transfers / AR-322874 /AFSL-234951

SMSF Accredited Adviser / UK SIPP Authorised Adviser 

Director  - Vista Financial Services – www.vistafs.com.au 08 8381 7177

 

Please note that my advice is general advice only and professional financial advice should be sought for your own personal situation.

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Thanks Andrew. i was just hoping there might by now be a non SMSF alternative so that I might be able to compare offerings. Thanks for your input. 

  • Thanks 1

Steve Elliott

Registered Migration Agent (MARN 1804671)

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