Montfort Warns of Pension Scams
Montfort is warning individuals considering relocating abroad to be very wary of potential pension scams. It comes as the Daily Mail reports many thousands of British retirees have lost a total of around 12 billion euros to pension scammers.
Our financial advisers are working hard to raise awareness of the importance of choosing trusted firms to handle overseas pension transfers. We are aware that pension scammers are operating abroad, and we are recommending that individuals opt for regulated firms.
Media reports currently highlight how pension scammers are taking their operations overseas to avoid tighter UK regulations, while taking advantage of Qualified Recognised Overseas Pension Schemes (QROPS).
Geraint Davies, Managing Director of Montfort commented: “It is important to remember that QROPS can be tax efficient when transferring pensions abroad, but it is vital they are used in the correct way.
“At Montfort we work closely with individuals retiring overseas or relocating for work. We discuss the all the options with them and only recommend a pension transfer when it is the best solution. As a UK-based, FCA regulated firm we adhere to industry regulations and we understand the pros and cons when it comes to assessing the merits of whether or not to transfer a UK pension abroad.
“Beware the strategy of a so-called financial adviser who within their opening introduction is pushing a pension transfer into a QROPS or an International SIPP. This is often a trademark of a scammer or a product peddlar.”
Margaret Snowdon, Chairwoman of the Pensions Scams Industry Group, told the press that ‘scammers have long targeted expats living in Spain and other territories’ due to relaxed regulations.
“Overseas, it is more difficult to judge whether an adviser or introducer is properly authorised and under which jurisdiction they operate. Often there is no UK protection, which makes the cases all the more tragic,” she said.
Geraint Davies added: “In light of recent media reports, our experienced advisers are helping to educate people how to avoid the pension scammers and they have created a check list of qualities to look out for when selecting a trusted firm like Montfort.”
Media Sources: Daily Mail / International InvestmentBack to all posts