View more on these topics

What advisers are saying: QROP-ey understanding

Phil Wickenden Technical Area 200

This week I have discovered soup, flasks, and to-do lists. I’ll qualify that – I have always been a sandwich man for lunch but am now entirely won over by the high net energy gains offered by soup on account of a fantastic ‘digestion effort-to-nutrients’ ratio. The digestive process consists of first creating a 100 ̊soup in the Stomach (remember that body temperature is 98.6 ̊).The more a food is like 100 ̊ soup, the easier it is for the body to digest plus the water content of the vegetables in soup allows for efficient exchange of nutrients into body cells. I won’t bore you with the other two revelations but needless to say every day’s a school day.

No matter where we are in life, or how experienced, there’s always new stuff to learn. Some of it benefits us, some of it won’t and the trick is to filter out the latter and invest more into what’s left.

Our latest adviser research into offshore investing for UK investors highlights some clear education gaps, particularly around QROPS and QNUPS which, this year, advisers expect to comprise only 2.3 per cent of all offshore solutions used (the lions share being offshore bonds).

The overhaul of the QROPS legislation last year substantially changed the landscape of the industry.

Since ‘Q Day’ last year we’ve seen prices rise, operational efficiency and servicing standards fall, significantly less product and increased complexity as the remaining jurisdictions try to fill the gap left by Guernsey’s exit. That leaves a lot of uncertainty and has contributed to a tendency for advisers to err or the side of caution and avoid that which they are not 100 per cent clear on.

But the answer to uncertainty is not avoidance and Independent advisers may be sitting on a mis-selling time bomb by not advising on qualifying recognised overseas pension schemes, as the regulator confirmed that IFAs must consider any such products that fall under the definition of retail investment products.

Since some QROPS may fall under the RDR definition of retail investment products it rather makes it a no-brainer.

Advisers’ lack of understanding (and use) of QROPS is a massive issue. Advice requires knowledge not only of the financial planning issues but tax consequences of the UK and the country of residence, visa implications and social security issues. Not advising on something you don’t fully understand is commendable… unless it happens to be the most appropriate solution, in which case it’s negligence.

Phil Wickenden is managing director of So Here’s The Plan

P Wickenden Quotes 28 Mar 13


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Daniel van Niekerk 22nd June 2013 at 2:48 pm

    Yes, it is imperative that people get qualified and preferably regulated advice on these issues.

    For more free advice and information have a look at

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm