Third country advice
The government said it is also looking into how the current local adviser rule would apply to individuals overseas with a UK final salary pension who then decide to move it a pension scheme registered in a third country different to the one in which they live.
It added that in such cases it is consulting the industry on the risks and benefits of taking advice from an adviser in a third country.
The consultation closes on 23 December 2016.
‘Defining moment’
Describing the measures as a “defining moment in financial planning history”, Geraint Davies, managing director of international IFA firm Monfort International, believes removing the advice safeguard will put consumers at risk from scammers.
“The consumer has to be protected and less controls means trouble.
“The systems and processes for international financial planning need over hauling and have done for years and it’s called education and a lack of it!
“This is not about difficulty in getting advice delivered. It’s about shocking education standards when it comes to international financial advice delivery when it comes to migrants or people working in one jurisdiction with financial interests in another.
“It’s the wild west out there and at long last the penny might be dropping – and there are going to be pennies from heaven and bad pennies will land in the email tray,” he told IA.
He questioned why “scammers, commission hiding cowboys and con artists” have been given even more freedom to “flog useless pension solutions”, referring to Rops.
“Pension transaction victims will be writing in their thousands demanding why anyone would suggest that the scammers and commission hiding cowboys and con artists be given even more freedom to flog useless pension solutions,” he added.
Davies said he know of one firm with a pension specialist, who signs 40 overseas transfer letters a week – “the fees being earned would be more than Hollywood’s highest paid actor gets for their autograph”, he said.
