Pensions advice - cross border rules

[djs]

I’m looking for some advice / information, or pointers to sources for the same regarding a surprise from our pension advisors.

we are currently in our fifth year of live aboard travel but maintain a property and small business in the uk. Still complete Uk tax returns , have no overseas earnings.

we have pension funds with Scottish Widows through an IFA firm in the UK. We have been with them for many many years and are happy with their advice and service.

we are considering starting to draw down on our funds and from previous conversations believe this is potentially complicated and making the right decisions will be important to both maintain the fund and make the most of our tax allowances etc.

however, we get an email this morning saying that as we are not physically in the Uk, ‘cross border rules’ prevent them giving advice to us but they can take instructions.

some limited quick research suggests to me that the cross border regulations apply to pension schemes where members are living in countries and are under different tax and pension scheme rules to those pertaining in the country in which the pension scheme is held. Changes and new regs have arisen because of brexit.

I’m hoping this is an overreaction from the Advisors compliance team who don’t understand the details of our situation and are coverering their arses.
Anyway, we have a conversation arranged with the advisor later today and any additional knowledge or pointers would be gratefully recieved.

Thanks

Dave

 

[ashtead]

This might be because as a UK regulated adviser they don’t have permissions to provide cross border services ie passport into your foreign location. Their permissions will be on the FCA website but that’s my guess although more based on experience of general insurance brokers as opposed to lie assurance brokers aka IFA. I suspect if you were back at your uk location they might not have an issue.

 

[djs]

This sounds very likely. Natural progression of this would be that they wouldn’t advise anyone who was on holiday in another country. Maybe I can get them to write their advice to us at our normal correspondence address in the uk.

 

[ashtead]

If you’re on a super yacht being paid out of say a Swiss bank account by your owners then if based in France say you need a French adviser to sell you a policy written by a life co based in say Isle of Man even if a British passport owner I believe. If on holiday you could consult your broker by phone . It’s much easier for properties as the location of risk tends not to change?

 

[john_q]

I had a Scottish Widow policy that was converted into a pension in 2019 (worth £82 per month!) , To set up the pension I had to endure 2 x 90 minute telephone interviews with their advisors and serious pressure to speak to an "independent" advisor before I committed to anything whose charges would have eaten up the small value of the pension, They are terrified of mis selling these days

 

[srm]

I had a Scottish Widow policy that was converted into a pension in 2019 (worth £82 per month!) , To set up the pension I had to endure 2 x 90 minute telephone interviews with their advisors and serious pressure to speak to an "independent" advisor before I committed to anything whose charges would have eaten up the small value of the pension, They are terrified of mis selling these days

Likewise with Scottish Widow a few years ago for even less pension. I complained about the proceedure as I was in the process of selling my house and moving on to the boat and it had not been made clear in their letter that I had to phone them. Also, though still in the UK at that time there were no credit agency records for them to confirm that I existed. I was sent £25 compensation and my file was handed over to an in house complaints manager who smoothed everything out very quickly with a couple of short phone calls. Mentioned this to my lawyer and she got £50 compensation from them every time she complained on behalf of clients.

 

[djs]

We have spoken to the advisors. It was a arse covering exercise on a technical difference between giving advice and merely facilitating a transaction. We were able to glean enough information as to how to calculate the tax implications and to feel confident enough to make decisions ourselves and just provide instructions.

thanks for the replies and experience.

all the best
Dave