Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

NEW QROPS RULES WILL STRENGTHEN THE INDUSTRY AND FURTHER PROTECT CONSUMERS

The new, tougher regulations and guidelines announced for the UK’s pension transfer market are being hailed by the boss of one of the world’s largest independent financial advisory organisations as “a landmark moment for consumers and the industry.”

The observations from Nigel Green, the founder and chief executive of deVere Group, a leading global pension transfer specialist, are in response to the Treasury’s confirmation that only adviser operating within the Financial Conduct Authority’s (FCA) framework will be able to offer advice on transferring defined benefit (DB) pension schemes into Qualifying Recognised Overseas Pension Schemes (QROPS).

The move follows the publication of a review commissioned by the FCA that found “a risk of customers losing out on retirement income due to poor advice.”  The review looked at nearly 300 cases from bulk pension transfer advice exercises between 2008 and 2012.

Nigel Green
Nigel Green

Mr Green comments: “It is right and appropriate that those offering advice to the public on transferring UK pensions must be of a professional level that is expected by the UK regulatory body, the FCA.

“In addition, we champion the revised QROPS guidelines that insist that a client’s tax position and risk appetite, amongst other factors, are fully assessed; and that schemes that are substantially underfunded will have the right to refuse transfers.

  “Today’s announcement is a landmark moment for consumers and the industry.  By only having those who are FCA-licensed deliver advice, it offers an enhanced layer of protection for consumers; and it will, inevitably, drive up the quality of advice and push wider industry standards higher.

“The FCA’s ongoing dedication to making the QROPS market more robust is evidence that the sector is maturing and that QROPS are becoming an ever-more mainstream pensions option, which is also shown by the fact that since they were established in April 2006, there’s been an annual increase in demand for QROPS.”

He adds: “I suspect that there will be some firms within the QROPS market who will bemoan the fact that these changes will result in increased paperwork and expense.  But the clampdown will, without doubt, strengthen the sector for all its stakeholders, including clients and advisers, with immediate effect and must be welcomed.”