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AES Intl calls in specialist to mitigate Qrops risks

AES International says it is commissioning external actuarial reviews before providing Qrops advice to clients to mitigate risk issues around the product.

Managing director Sam Instone says the offshore adviser seeks external reviews before giving Qrops advice to offer another layer of scrutiny.
He says: “A specialist does the analysis on the scheme, looking at the potential benefits of Qrops. He looks at possibilities like, say, an ex-pat might lose their spousal benefit where you might have guaranteed benefits in the UK. You might get a lower tax-free sum at retirement also.”

Instone says an actuarial analysis for a given scheme costs around £500 and means that IFAs – who tend to get few advice requests on Qrops – do not have to become experts on the schemes.

He says: “This reduces the risk and the UK networks are doing the same. They do not want to be held responsible for mainstream advisers who might not have the technical competency.”

Instone believes the Qrops industry is viewed as a “horrible area full of cowboys” by certain segments of the finance industry.

SimplyBiz chairman Ken Davy says the IFA support services firm continues to give specialist advice on Qrops although it has warned of the need for “great care” in the area. “We do give detailed advice to firms on an individual basis,” he says.

Global Qrops director Simon Harvey says that IFAs can defer Qrops advice to the company, which also implements Qrops schemes abroad, and it will then pass clients back to the initial adviser, allowing them to retain other investment advice work.

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