The survey, conducted by strategic intelligence company Insight Discovery, garnered 45 replies from IFAs across South Africa on its QROPS questions.
It revealed 55.6% of respondents expected to see QROPS transfers grow during the next 12 months.
Caution
“A degree of caution has to be used with this small sample but, in my view, it is representative as there are fewer than 10 firms in South Africa that focus solely on expats,” said Nigel Sillitoe, Insight Discovery chief executive.
Nearly half of the IFAs said it was too early to tell what impact the new UK pension freedoms would have.
However, nearly one-quarter believed the rules, which remove the minimum income requirement and make it possible to withdraw 100% of a money purchase pension fund from age 55, would make QROPS more attractive.
The UK regulations governing QROPS currently apply to only around 14% of IFAs who actually advise clients on the transfer of pension assets to QROPS.
In relation to QROPS, respondents reported that they worked with a wide variety of trust companies and international life companies.
Among the international life companies mentioned, RL360̊ and Friends Provident International were the most popular.
Life insurers were selected on criteria such as accessibility, fees, fund range and flexibility.
Insight Discovery’s overall survey of 314 SA IFAs, The South Africa Investment Panorama, revealed 60% viewed regulatory change as the main challenge facing the industry.
The survey was conducted after the Financial Services Board (FSB) ended a discussion period on its proposed Retail Distribution Review in March this year.
The FSB is expected to introduce the new regulations governing financial advisers.
