Transfer of UK pension to Australian QROPS personal superannuation fund

[cybeatb]

I am a little confused? What is the short answer, Can I use the value in my fund by calculating AUD using the historical exchange rate or do I need to use the current exchange rate which is what applied to the funds at the time of transfer?

[koyasan]

I am a little confused? What is the short answer,

The short answer is Yes. You can use the historical exchange rate applicable when you came to Australia to value the Fund value at that time (you do of course need some estimate of the historical Fund value from your UK Fund). That's what the ATO agreed with me , but only after I quoted from their own private rulings. I should add that even when I calculated the tax I should pay on the Fund earnings it took six weeks to persuade AustraliaSuper to deduct the tax due to the ATO........again I can only speak from my experience of AustralianSuper but their incompetence and inefficiency in the handling of my transfer is unbelievable.

[cathntone]

I too transferred my small UK private pension pot to Australian Super and my experience was similarly woeful. After reading the posts above I now know I should also check the transfer rate when it finally came over. It took so long to arrive that in the process I fell foul of the work test rule. I have contacted the tax office here in vain in an effort to find out what evidence they require from me to satisfy this ruling. Other than finding formal paid work (nigh on impossible) the only info I've uncovered is rather woolly, implying that one can baby sit etc but not voluntary work. I childmind my baby grandson regularly and certainly sufficient hours to cover the rule but I'm currently not paid for this work. I can quite easily formalise this arrangement and be paid but how to go about this. Time is of the essence of course, I don't really want to obtain an ABN if I don't have to. Does anyone have experience of this issue?

[Guest Rich the Specialist]

Actually, Alan has interpreted those rules incorrectly.

 

The 5 year rule applies to the cash lump sum. You can take a 30% cash lump sum at 55 under QROPS rules as long as you have been living in Australia already for 5 years. If not, you can only take 25% or wait until 5 years and take the 30%.

 

You are protected from the 55% tax upon death that the UK currently charges as soon as you transfer out and you can pass on 100% of your pension pot as a cash lump sum to your loved ones upon death.

 

The 10 year rule is just the reporting requirement a QROPS trustee has to do for 10 years; for 10 years after transfer the QROPS trustee has to notify HMRC every year. However, this doesn't affect clients, the QROPS admin team will do this for you.

 

New QROPS rules in 2014 mean that if you have a public sector final salary scheme, ie. you are a policeman, doctor, nurse, worked for NHS, British Gas, local government, etc, you have little time left to transfer as the UK will not allow it after April 2015 and it can take 3 to 6 months to transfer. They are in discussions of whether they will allow private final salary schemes to transfer out or not.

 

Final salaries can usually only be transferred if you haven's started taking an income from it.

 

Armed forces pensions can usually only be transferred if you started in the army before 1986.

 

The UK government simply can't afford the transfers out. With interest rates so low, the pension pots are getting very high values, so it is a good time to look into it and get a transfer value analysis done before the door closes in 2015.

 

A QROPS isn't for everyone and some may be better off leaving their pension in the UK. Others need to transfer their pensions to QROPS in Australia and other clients fall in a bracket where it may be beneficial to move your pension to Malta which has a Double Taxation Agreement with Malta. The Aussie Dollar is quite high at the moment, so you may be better off transferring to Malta and keeping it in GBP, transferring to Australia at a later date.

 

 

 

- Richard

[barnsey10]

Hi, I am planning to move my UK final Salary Scheme Pension over to Australia - I just have a couple of questions.

 

1. I understand that there is a $540K limit for 'bring forward' non-concessional contributions, any monies above this will be taxed at 46.5% - am I correct ?

2. Any transfer must be into a QROPS scheme ?

3. Any monies in the new scheme cannot be accessed for 5-10 years without a UK tax liability ?

4. Can I start a SMSF with my new Australian Super fund - I would like to build property ?

5. Will the HMRC come after me for this ?

 

Any help greatly appreciated.

 

Cheers

[Andrew from Vista Financial]

Hi, I am planning to move my UK final Salary Scheme Pension over to Australia - I just have a couple of questions.

 

1. I understand that there is a $540K limit for 'bring forward' non-concessional contributions, any monies above this will be taxed at 46.5% - am I correct ?

2. Any transfer must be into a QROPS scheme ?

3. Any monies in the new scheme cannot be accessed for 5-10 years without a UK tax liability ?

4. Can I start a SMSF with my new Australian Super fund - I would like to build property ?

5. Will the HMRC come after me for this ?

 

Any help greatly appreciated.

 

Cheers

 

Hi Barnsey

 

 

• The limit for Non-Concessional Contributions increases from 1 July to $180,000 annually and if using the 'bring forward rule' a maximum amount of $540,000 can be contributed over 3 financial years to remain within the caps. Currently a breach above the cap triggers a 46.5% tax however this may change due to the proposals in the recent budget.

 

 

 

 

• A transfer will not be able to occur unless it is going to a QROPS (if transferring outside of UK) as the Trustees of the Scheme will not allow it to be transferred otherwise.

 

 

 

 

• There is a 10 year reporting period and a breach period whereby any unauthorised withdrawals (essentially being withdrawals outside of what could have occurred had the monies remained in the UK) made within 5 full UK tax years of being a non UK tax resident could result in tax charges of up to 55%.

 

 

 

 

• Superannuation monies in Australia can be held in an SMSF if set up correctly of course. It is also possible in Australia to purchase residential property inside an SMSF under strict conditions. Building a property is another situation altogether, this may or may not be able to be done depending upon whether there are borrowed monies involved if so it may result in a breach.

 

 

 

 

• Using UK Pension monies to buy residential property is generally not permitted and if it were to happen HMRC could apply a charge.

 

 

This whole strategy carries significant risks not only in relation to potential breaches of rules but also in relation to the investment strategy itself.

 

Legislation apart, I assume that you have under $540,000 in monies otherwise it would be unlikely you would be transferring the final salary scheme to Australia.

 

Based on this assumption you are then committing a significant portion of your funds to one single asset class which would be in the region of 75% + this is a very high risk strategy (again with an assumption that you would not be able to buy land and build for less than around $400,000).

 

Have you spoken to someone already in relation to this or is this just something that is an initial idea?

 

I would strongly advise taking professional advice before embarking on anything.

 

Regards

 

Andy

[Geraldine]

Hi Andrew, I note your comment regarding a fund worth less than $540k are you implying funds worth more than this in pensions such as the NHS should be left in the UK ? Due to the UK chancellors recent changes we are currently considering all our options . Thanks Geraldine

[Andrew from Vista Financial]

Hi Andrew, I note your comment regarding a fund worth less than $540k are you implying funds worth more than this in pensions such as the NHS should be left in the UK ? Due to the UK chancellors recent changes we are currently considering all our options . Thanks Geraldine

 

 

Hi Geraldine

 

No that is not what I am implying, moreso that it may not be wise to transfer directly due to breaching contribution caps and the potentially punitive penalties involved.

 

However I would suggest that you hold fire for a week or so to establish the outcome of the consultation in relation to the budget announcements as the changes may not be an issue for you.

 

I note that you are in the UK, when do you arrive in Australia?

 

Regards

 

 

Andy

[ArthurHolloway]

Hi All,

Thanks for all the very useful information posted to date in this thread. I'm an Aussie ex-pat and will be returning to Aus (for good) at the end of the year, and have a few more questions I hope someone can help with. I plan to setup a QROPS SMSF in Aus to receive a cash transfer of my entire UK pension balance. I'd like to try and do everything myself to save a few bob, but first I'd like to understand more about managing the GBP to AUD exchange component with the transfer. I have a couple of questions:

 

1. My pension is currently with my employer's defined contribution scheme, and I'm thinking of transferring it to a SIPP in UK first before I make the transfer to Aus. Would a SIPP afford me more flexibility/control/agility with the timing and execution of the transfer to Aus, with a view to getting the best exchange rate? Or to put it another way, what is the best approach for getting the optimum rate if you are doing a DIY transfer? Is a SIPP even worthwhile/necessary?

 

2. Someone mentioned earlier in the thread the option of transferring GBP to an SMSF, without exchanging for AUD. What are the mechanics involved here? Assuming the SMSF is setup in accordance with all relevant rules etc, is it just a matter of the SMSF having a sterling bank account facility attached to it? And are there then any rules around changing funds into AUD when (hopefully) the rates improve?

Any advice much appreciated!

 

Cheers

Steve

[Geraldine]

Hi Andrew, thanks for that clarification. We have been living in Oz for just over a year on a 457 visa. Just about to apply for PR so no plans to do anything until that is granted. Unless of course the chancellor does block the movement of NHS pensions then we may have to make a decision much sooner than we had anticipated . Thanks for the heads up on the consultation I will look out for the details. Geraldine

[mf3106]

HI I've just joined thr forum and have a specific question someone may be able to answer.

 

When bringing your super into the Australian system there is a defined formula to calculate the tax on the transfer which is basically calculated on the growth of the fund between when you left the UK and when you transferred the value of the fund across.

 

In my case I do not have the value of the fund at the date that I left the UK, and I believe that there is a formula which can determine (to the satisfaction of the ATO) the value at the date of leaving. Does anyone know of this formula, and where it might be found?

 

Thanks

[Sydney Boy]

Myself and partner both have defined benefit "final salary" pension funds in UK , One is the unfunded NHS , the other a company private "funded" pension fund.

 

Our Australian pension expert is telling us the advantages in general of transferring from the UK and is telling us in general what the tax laws are.

 

They have received the valuations for both funds. One fund is above the 540k limit so its been suggested Gibraltar as the location to keep at least that fund in pounds until we decide to bring it to Australia in parts. No reason for Gibraltar rather than another country has been given.

 

At no point has the adviser given me any specific projection or what in the UK they call "critical yield" calculation to compare what the UK fund would pay out annually in maturity compared to a QROPS invested in shares etc i.e They havnt said what a QROPS fund needs to generate to be equivalent to the benefits of the original defined benefit scheme.

 

Am I completely mistaken in my expectations when dealing with country to country advice ???

 

I've quickly worked out on the larger fund that a return of 2.5% plus inflation say 2.5% = 5% would be equivalent to the defined benefit pension without having to touch the capital ( which in Australia I would also have access to the capital ) . But even that type of info has not been provided.

 

Is it something to do with official financial advisers or "pension transfer" accountants in Australia not being allowed to give advice on foreign investments????? Should an Australian international expert on pensions be able to give me comparisons for the UK pension funds vs them in a QROPS or not, so I can make an informed choice ? My other regular Australian pension adviser won't get involved in foreign pension advice except to set up a QROPS.

 

What should I expect for the large transfer fee they want ? Is it such a no brainer to transfer it to a QROPS from the UK that I shouldn't bother with projections for comparisons ?

 

Confused ! Our valuations are now about to expire and I still havnt even got one spreadsheet to show the pros and cons or what the QROPS needs to generate.....am I expecting too much is this unregulated no mans land ? Am i supposed to just accept its the right thing to do because the expert tells me ?

 

 

 

Actually, Alan has interpreted those rules incorrectly.

 

The 5 year rule applies to the cash lump sum. You can take a 30% cash lump sum at 55 under QROPS rules as long as you have been living in Australia already for 5 years. If not, you can only take 25% or wait until 5 years and take the 30%.

 

You are protected from the 55% tax upon death that the UK currently charges as soon as you transfer out and you can pass on 100% of your pension pot as a cash lump sum to your loved ones upon death.

 

The 10 year rule is just the reporting requirement a QROPS trustee has to do for 10 years; for 10 years after transfer the QROPS trustee has to notify HMRC every year. However, this doesn't affect clients, the QROPS admin team will do this for you.

 

New QROPS rules in 2014 mean that if you have a public sector final salary scheme, ie. you are a policeman, doctor, nurse, worked for NHS, British Gas, local government, etc, you have little time left to transfer as the UK will not allow it after April 2015 and it can take 3 to 6 months to transfer. They are in discussions of whether they will allow private final salary schemes to transfer out or not.

 

Final salaries can usually only be transferred if you haven's started taking an income from it.

 

Armed forces pensions can usually only be transferred if you started in the army before 1986.

 

The UK government simply can't afford the transfers out. With interest rates so low, the pension pots are getting very high values, so it is a good time to look into it and get a transfer value analysis done before the door closes in 2015.

 

A QROPS isn't for everyone and some may be better off leaving their pension in the UK. Others need to transfer their pensions to QROPS in Australia and other clients fall in a bracket where it may be beneficial to move your pension to Malta which has a Double Taxation Agreement with Malta. The Aussie Dollar is quite high at the moment, so you may be better off transferring to Malta and keeping it in GBP, transferring to Australia at a later date.

 

 

 

- Richard

[savanna454]

Interesting thread and thought I would post my own experience. I recently transferred my pension from the UK to AustralianSuper. I did all the paperwork myself which was relatively straighforward but was shocked by the terrible exchange rate when my Funds were exchanged from sterling to Aud by NAB through AustralianSuper. To cut a long story short after a lot of emails I eventually found out that I was given a carded rate on my fund (worst possible) and this was inspite of AustralianSuper claiming they had a special arrangement with NAB to get the most favourable rate for their clients. I was charged a hefty 3.5% premium on top of the spot rate which was excessive and AustralianSuper were adamant it was a fair rate. Fortunately I trade Forex so I just knew I was not treated fairly. The latest is they have admitted the rate should have been more competitive (no apology of course) and have amended to the interbank rate plus 0.7% but so far have refused to backdate the loss of interest accrued since the transfer. The point I would make is that I question if AustralianSuper monitors the rate given by NAB for transfers and unless you scream loud enough the only favourable rate is one which benefits NAB. As a bank maybe NAB are just doing what comes naturally but my real criticism is with AustralianSuper for accepting such a bad rate in the first place. I just wonder how many people have transferred their UK pensions through AustralianSuper and unknown to them have got a bad deal in the Exchange rate. Fortunately historical interbank rates can be easily checked and with persistence you can get full details of the rates applied to your transfer. What surprises me is that to date I do not know of any class action being taken against AustralianSuper for this type of practice. Is AustralianSuper really only run for the benefit of its members?......look past the hype and demand the details.

 

Interesting my experiences are very similar. I decided to transfer my final salary scheme and a SIPP using Australian Super. I thought an industry superfund and one of the largest if not THE largest super fund in OZ would have economies of scale and be efficient as they have a dedicated QROPS transfer unit based here in Melbourne and offer fee free transfers from the UK. What a night mare to deal with! Despite doing all the 'legwork' they sat on the paperwork for weeks and communication is also very difficult. You can never speak to anyone who really knows what's going on. Worst of all are the exchange rates used in converting GBP>AUD . On the 30/04 the interbank rate was 1.819 their bankers NAB used a rate of 1.763 which is a 3% loading! As a private client of OzForex I would have been charged 0.8% for the same amount and that's with no further negotiation. There must be millions of GBP going through NAB at these appalling rates and I wonder how many people notice let alone make a fuss...what a rort! Australian Super must be aware of this but what are they doing about it?

[bloomersthebear]

Hello all

 

I have a dilemma and time is not on my side in the slightest. (my own fault)

 

To the point I am ex UK Copper who has transferred to the QLD police. I have a deferred pension with the UK service just worked out for me at 150K

 

I have been chatting to this fellow (IFA) from the UK that deals with QROPS and the likes of me.

 

He has pointed me in the direction of Malta and the Momentum Pension investment people. additionally he has recommended the Royal London 360 fund for a 10 year period.

 

I have the papers here and if I can get them to him by mid next week I have a chance to beat the deadline for these kid of pensions the government are looking to ban from QROPS. (4th April)

 

I have mulled over this for a while but I see pensions and funds and super as a dark art but im learning out of necessity.

 

My police pension I can draw down on at 60 (it may change again im sure) its currently worth 11.5k per year. its fairly solid I suppose being a government pension but I am aware that the QROPS provides lots of advantages too.

 

Q. Do I stay or do I jump into QROPS (tough to call everyone's different I know, but I'm likely to want to travel between the UK and here in QLD when I retire)

 

Q. Are these fees sent to me by the IFA chap, after some pressure I hasten to add, fair with the what's on the table or exorbitant?

 

Q. Momentum and RL360 any good?

 

 

With the time as it is I haven't time to engage anyone else I need to put up or shut up.

 

 

 

The table below breaks down the costs and gives you an idea of the costs based on a portfolio amount of £150k.

 

 

Any positive advice would be great. Its a school boy error to have left it this late.

 

Thanks in advance to any kind souls out there.

 

 

 

 

 

 

[TABLE=class: ecxms-rteTable-default]

[TR=class: ecxms-rteTableEvenRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​Fee option 1

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​Fee option 2

[/TD]

[/TR]

[TR=class: ecxms-rteTableOddRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​Advisor Initial Fee

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​3%

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​£0

[/TD]

[/TR]

[TR=class: ecxms-rteTableEvenRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​Advisor annual Fee

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​0.25%

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​0.25%

[/TD]

[/TR]

[TR=class: ecxms-rteTableOddRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​Invested Amount

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​£145,500 (97%)

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​£150,000​ (100%)

[/TD]

[/TR]

[TR=class: ecxms-rteTableEvenRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​QROPS Fee initial

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​£645

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]£645

[/TD]

[/TR]

[TR=class: ecxms-rteTableOddRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​QROPS annual Fee

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​£845

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​£845

[/TD]

[/TR]

[TR=class: ecxms-rteTableEvenRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​RL360 Fee

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​0.44%

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​0.84%

[/TD]

[/TR]

[TR=class: ecxms-rteTableOddRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​Fund Fees (estimated)

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​0.5%

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​0.5%

[/TD]

[/TR]

[TR=class: ecxms-rteTableEvenRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​[/TD]

[/TR]

[TR=class: ecxms-rteTableOddRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableEvenCol-default]​Total after Initial invested after costs

[/TD]

[TD=class: ecxms-rteTableOddCol-default]​£144,010

[/TD]

[TD=class: ecxms-rteTableEvenCol-default]​£148,510

[/TD]

[/TR]

[TR=class: ecxms-rteTableFooterRow-default, bgcolor: rgba(255, 255, 255, 0.85)]

[TD=class: ecxms-rteTableFooterEvenCol-default]​Total Annual Fee

[/TD]

[TD=class: ecxms-rteTableFooterOddCol-default]​1.77%

[/TD]

[TD=class: ecxms-rteTableFooterEvenCol-default]​2.15%

[/TD]

[/TR]

[/TABLE]

 

 

As you can see the initial invested amount after costs take into account QROPS set up fee and first years annual cost. The costs shown also factor in a proposed portfolio, but this can change largely depending on the underlying investments, for example if you purchase all single company stocks this cost becomes 0%.

 

 

 

Let me know your thoughts.

 

 

 

Kind Regards

[Geraint]

Hi Bloomers the Bear

 

You have an interesting set of circumstances. The world of QROPS is one which we pioneered at Montfort International. Yes we started it 20 years ago when we conducted and designed the first ever, ever, ever, ever pension transfer to Australia solution to a purpose designed (by us) Australian superannuation scheme, that was technically challenging to say the least. Enough of the background but we do know our business - journalists refer to us a lot - see todays Mail on Sunday. And we are now working with at least two major household name employers whose former and current employees have been targeted and there is some shocking advice being or has been delivered.

 

Some people might not like my comments - quite frankly it doesn't bother us - what concerns us is the delivery of quality advice and the concept and delivery of QROPS advice having a sound reputation. A group of us have got together to ensure quality advice is delivered as we are concerned as to what is happening as regards advice. So if this helps BTB then good and if it helps others that is also good.

 

I will now tell what I like and don't like about your situation.

 

1. Everybody who could or might live ex-UK needs to have examined their rights to transfer to a Qualifying Recognised Overseas Pension Scheme (QROPS) asap. So you should have looked at it sooner but you are where you are and you need to act so I hope the following helps by the way we always say look at the pension questions as soon as you plan to move ex-UK if you are a migrant. I have an article on do's and don'ts coming up in the Australia and New Zealand Magazine - apologies if this comes across as promotional of a journal but the article might help some of you out there its non-promotional of Montfort International;

 

2. If it is actually an IFA in UK that you are dealing with (some say they are but are not) then he or she must be one who is recorded at the Financial Conduct Authority (FCA) as being one examined \ signed off as able to conduct pension transfer advice (there is a difference between a. advice and b. filling in forms and c. flogging a product. You must have had a pension transfer analysis completed that factors in your Australian residency, if not you have cause for complaint as to whether the advisor is actually competent to deal with overseas transfers to those resident in Australia. The extent of the report and factors needing to be covered is immense. I do not believe it is possible to conduct such advice unless you have paid a fee and the reason for this is not only the number of options but not all schemes should be transferred. So knowing how he is being paid is a must. I presume you have checked all these matters? If you have not get on to this straight away and also check for reference to matters such as Applicable and Previously Exempt Foreign Earnings. You also need to look for disclaimers and the one that is rife is the one that refers to "tax" - in a recent report we wrote for a migrant we referred to the word tax 62 times, mostly as regards Australian tax consequences. Count the number of times you see the word tax mentioned and the context. I don't want to criticise what I haven't seen because that would be unfair however either you have not supplied all that is needed to comment or he is not telling you the full story. What we do see is a lot of stories that purport to be the full story but are nothing of the sort. Happy to look at.

 

3. Its horses for courses - Malta may be right for you - but go back to the number of times tax is mentioned as that is the starting point before you even get to the subject of Malta. However Malta is an unusual choice for Australian residents - would need to see the file before commenting, however if it was one of our advisers recommending Malta I would want to see some very good reasons for why. So on balance of probability and it is balance - I would need some convincing - I can be convinced in certain situations less so for £150K

 

4. To get a scheme to Malta at this late stage using pre 05/04/15 solutions seems practically an impossibility with wet signatures, etc. So its curious as to why?

 

5. We recently compliance checked Momentum making a visit to their offices in Malta - we don't have a problem with them, but you may want to call them to see what they say about advice to an Australian resident. Momentum only carry the can if they fail to administer, but I am sure they would be concerned about any person receiving pension advice that was lacking, ask them what they know about the experience of this IFA in dealing with Anglo-Australian matters. Stuart Davies is the Managing Director.

 

6. I am concerned about is the RL tie in for 10 years - definitely would get our compliance crawling all over this - they would be looking for excessive charging and adviser earning disclosure. You need flexibility - these tie ins mean the adviser will be paid come what may - how is he going to service you and advise you post 2015 - for £375 - or does he get that come what may and if he ain't any good how do you change advisers. These are questions you must ask, our clients don't have to ask the questions we tell them upfront what "they get for their buck".

 

7. As regards banning that is strictly incorrect, sounds like a sales ploy - there will be solutions for those in your situation post 06/04/15, but few will be able to deliver. The Mail on Sunday delivers testimony in the article on Scammers and hints as to why the changes to options were necessary and when we met in Whitehall with the powers to be back in 2013 and 2014 the writing on the wall for a UK FCA registered person to deliver this advice became a given. The UK regulators can only police UK advisers - hence why you need to work with the right adviser. I think its fair to say there are growing concerns about Australian advisers not delivering UK options.

 

8. The only people who should be advising you on this post 06/04/15 are UK permitted advisers so I suggest that you use the same logic for pre-06/04/15, i.e. the only people on this forum who can advise you are therefore UK IFA's with the necessary regulatory permissions. Anybody who gives advice without the permissions is leaving themselves wide open - but can you complain if their advice is wrong? Yes but to who? Important question to have the answer for. You might want to ask the adviser what his experience actually is - I can for example go back 30 years on delivering advice to migrants.

 

9. As regards travelling between UK and QLD well that explains why your advice report you have in front of you must be packed full with tax commentary, advisers will tackle the tax question - salesmen don't.

 

10. You should be asking is it right to transfer in the first instance? Its not about Momentum and RL360 - we would if we were advising a transfer not use a QROPS at this stage we would use a SIPP due to the time line. I would not even try for a QROPS at this late stage - so suggest you should be as bewildered as I am.

 

11. If you have had to pressure him for the fees then are you not answering your own question?

 

12. Is it too late to jump ship? No

 

and finally

 

13 Ask if you can speak to someone who they have advised not to transfer? If they say No, then perhaps all they do is transfer come what may? This would therefore not be an IFA who is delivering quality advice if all they do is transfer.

 

Hope this helps

 

 

Geraint Davies

 

PS Ask him about other matters you should be considering as a former UK resident now living in QLD - you need to reel off these searching questions

 

 

 

Let me know your thoughts.

 

 

 

Kind Regards

[bloomersthebear]

Thanks Geraint.

 

I have digested your comments within the confines of my limited Pension knowledge capacity, and I can see that for the most part you make a compelling commentary to the quandary.

 

I too find it hard to imagine the paperwork can be done in time. photocopies of passports and birth certificates and signed by notaries etc etc would be cutting it fine to say the least. (and with this all done over the blower its worrying)

 

The chap contacted me after I visited a web site, one which eludes me at present, but stated that an advisor would make contact with me in due course, which he duly did. Knights Hayes is the company. The chaps name I shall keep mum, but he operates from of a suburban house in the greater London area. (by all accounts).

 

I did contact Momentum by email and they at least confirmed this chap and his company existed and was informed he was a client they have done business with previously.

 

I have decided to leave my pension as is and wait for the dust to settle post 4th April and then later in the year revisit my options. It was through my own fault a rushed process and I nearly entered into a potential disaster that may have cost me thousands. That pot of cash represents lots of night shifts and missed kids birthdays and Christmases so I am not happy to leave it to chance despite the late hour of my dealings.

 

My decision to keep the status quo was also influenced by having a decent super fund here in QLD with Qsuper which I pay 6% and my employer contributes 18% on top, so I was thinking that maybe that element in the UK should remain, especially if I am ideally looking to retire and live 6 months in each country for as long as my health and wealth allow.

 

Thank you for your insight into this matter. I will now give this chap the news of my decision

 

As a foot note is still amazes me that after all the taxes each single little earned pound has been through to get it into your pension how on earth is it still able to cough up yet more tax for the government.

 

 

Kind regards

 

 

 

BTB.

[Geraint]

BTB

 

Hope I have added something. We are getting more and more people contacting us questioning the advice that they have had delivered from these so called QROPS experts.

 

Your situation exemplifies the problem where you don't who to believe and who not to believe. Well the new rules change all that the FCA are effectively saying that those advisers who don't believe in our (FCA) powers watch out. I believe they are extremely concerned as to what advice is actually being delivered. You see we are FCA regulated and we are dealing with UK pensions - its very much within their jurisdiction to knock on our door as regulated and authorised, etc by the FCA

 

The concept of an adviser operating out of another country raises issues so lets look at a matter of public record that of http://www.knighthayes.com/

 

In this website they say "QROPS offers a "no lose solution" for expats that may return to the UK" and that is an interesting statement because I think of many reasons why one could lose. Perhaps they can explain ESCA10 and its derivatives? And what about the CETV analysis and the FX consequences and or implications of tax years?

 

They of course are not regulated by the FCA its what their website says

 

Knight Hayes PCS. Registered in England and Wales Number: 09092070.

Knight Hayes Ltd is an appointed representative of Abana Lda which is authorised by the Instituto de Seguros de Portugal and subject to limited regulation by the Financial Conduct Authority 597069. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. VAT Number: 199130682

 

But if they are operating their advice out of UK then they have to be regulated by the FCA and not subject to limited regulation.

 

Its not the advice cannot be done its how its done, I don't for one moment want to suggest that your funds are not safe using this firm, but the advice and the funds are subject to much more safety checks if done by an FCA adviser, hence the changes. See the Mail on Sunday article "Don't get caught by circling sharks". Momentum are fine, Royal London are but it depends on what you are being sold - I have seen reputable firms products grossly mis-sold with outrageous charges but the adviser has nominated the charges. Its all about understanding each persons role, Momentum are a provider, they choose whose business they take and they have chosen to take business from Knight Frank, they don't know that this adviser is supposedly based in Portugal but seemingly operating out of London, they would be very concerned about this. And Royal London likewise.

 

If he is working from a house in London, then he should be regulated by the FCA - he has to be based in Portugal. Momentum would presumably have been told by Knight Franks this man is based in Portugal. Perhaps it would be wise for Knight Franks to clarify the situation by informing the FCA what their structure is.

 

As regards looking at your situation I have to say - take advice now and from a regulated adviser in UK before the 05/04/15 - if you have been misinformed then you need to know asap. Your hard work must not be wasted and you have focused on issues of kids birthdays that only you know the cost - its unlikely many advisers consider the consequences - hence once again the rule change to make advice subject to UK permissions. Happy to speak off forum if you prefer or at some later date, but I would if I was in your shoes speak now -your call.

 

As regards the tax issues - thems the rules. The issues you raise below explain why see bullet points below expert advice is a must

 

"My decision to keep the status quo was also influenced by having a decent super fund here in QLD with Qsuper which I pay 6% and my employer contributes 18% on top, so I was thinking that maybe that element in the UK should remain, especially if I am ideally looking to retire and live 6 months in each country for as long as my health and wealth allow".

 

1. Your super in Australia needs to be examined in relation to what benefits you are potentially giving up with exiting the police pension, it could be for and against transferring out - so I wouldn't read too much into this.

 

2.Marital status and children and health do need to be factored in but once again could cause advice to go either way

 

3. the issue of living between UK and Australia creates many questions and could well support a transfer out on the other hand they might not.

 

The penalty tax charges you might refer to are ones why you need to ensure you know who you are dealing with.

 

Sometimes people will take offence of our views at Montfort, sometimes our views might impact on whether they can sell a product or not - which of course may be why they not want to hear our views.

[markperrigo]

CAN YOU HELP ASAP

I am in contact with the same person as you and being told to invest in Malta. I live in NZ and was a teacher back in the UK; the fund is over 300K and Im 52. I want to take some money out but am now worried about tax and is he a scammer. My email is speak.to.debs@clear.net.nz. time is running short so can you give me any insight as to whether M is a scammer or just a salesman.

 

Many Thanks

Mark

[Geraint]

Mark

You wanted to know if M was a scammer please send me details and we will advise if we think he is

a. Scammer

 

b. Not a Scammer but Technically Incompetent

 

c. Not a Scammer but Technically Competent but charging unfairly

 

d. Not a Scammer but Technically Competent but charging fairly

There seems to be a view that you have to transfer, has he delivered a report for which you should have paid a fee. If there isn't a report then he could be a salesman and or scammer and if there is a report and no fee then how is he going to be paid if there is no transfer.

 

I see you have a Teachers scheme its not impossible to beat "the deadline" (there are solutions after 06/04/15) but you are leaving it to the last minute for the pre 05/04/15 option

Hope this helps

 

 

Geraint

 

 

 

 

 

 

 

 

 

CAN YOU HELP ASAP

I am in contact with the same person as you and being told to invest in Malta. I live in NZ and was a teacher back in the UK; the fund is over 300K and Im 52. I want to take some money out but am now worried about tax and is he a scammer. My email is speak.to.debs@clear.net.nz. time is running short so can you give me any insight as to whether M is a scammer or just a salesman.

 

Many Thanks

Mark