The wealth manager found that 29% of overseas advisers had formed the UK relationships in time for 6 April, when the FCA will introduce a requirement on all defined-benefit pension transfers over £30,000 to be checked by an FCA-authorised adviser.
A consultation paper released by the FCA last week also revealed that pension policies with guaranteed annuity rates will require advice from someone with the relevant UK investment advice permission.
Old Mutual said a further 27% of overseas advisers were still deciding whether to form a relationship with a UK adviser firm, while 31% had not considered what action to take.
Meanwhile, the company said 8% of advisers are not taking any action due to speculation that the UK Government will introduce an exemption for overseas advisers on pensions transfers.
Under the new rules, an overseas adviser will need to pass a case regarding a transfer into a Qualifying Recognised Overseas Pension Scheme to a UK adviser firm for them to provide the pension transfer advice to the client.
While the UK adviser may never see or speak with the client, they will become entirely responsible for the advice.
The FCA said the requirements will protect those in a UK pension scheme who choose to act following April’s upcoming pension reforms, which remove the need for an annuity and allow complete lump sum withdrawals from a UK pension pot.
Old Mutual said UK adviser firms need to take care to ensure they follow a robust due diligence process before they agree to the arrangement with an overseas adviser, and must check whether the adviser’s local regulator requires them to be authorised to advise clients.
“This is particularly important in cases where the adviser relationship is new, and not as a result of being in the same global adviser firm or associated business,” it added.
Jon Greer, pensions technical expert at Old Mutual Wealth, said: “The survey results are an interesting insight into just how many overseas advisers have already taken action.
“Over the coming months there is likely to be more activity in this area as those with no obvious connections to UK adviser firms start to look for link ups.
“UK adviser firms interested in looking for these new business opportunities need to be aware that they will be held wholly responsible for what is essentially high risk pension transfer advice.
“A robust due diligence process should help to manage this risk.”
