A best practice code for advising on Qrops is being developed by a group of advisers from around the world.
Monfort International managing director Geraint Davies, one of the advisers involved in drawing up the code, says it will aim to give consumers more confidence in the advice they are given around Qrops and help IFAs ensure they are making the right decisions.
He says: “There is a way of doing this advice and this best practice guide will give advisers a process which, if followed, will give them confidence they are covering all the bases for their client or show if a third party is needed to give the advice.”
Davies says the code is necessary because advisers around the world are “scared or consciously incompetent” when it comes to advising on Qrops.
He says: “It is not just moving your client’s pension to, say, Australia, if that is where they are moving, that is twaddle. You need to look at their circumstances, the country’s stability, how you exit a scheme, the tax rules, regulation and other things and give your advice on that basis.” Davies is working on the code with advisers from New Zealand, Australia, Hong Kong, Canada and elsewhere and it is expected to be finished by June.
In 2008, the Personal Finance Society set up a working party of pension experts and worked with HM Revenue & Customs to publish a document addressing some key concerns about Qrops.
Syndaxi Chartered Finan- cial Planners managing dir- ector Robert Reid says: “Anything that tidies things up is welcome. People are sometimes put into Qrops when they should not be and it is about time there was a code of practice.”
Worldwide Financial Planning IFA Nick McBreen: “Setting it up is a potential mine- field so it has to be right on the money but if it works it makes sense.”