Choosing the best QROPS provider
QROPS providers are similar in many ways but very different in others. Some are overly cautious about what investments they will accept and from whom. Others are a little too cavalier and allow investment into funds that aren’t suitable or appropriate for their client. Malta QROPS providers are now strictly regulated, which has shut the door to ‘new horses being able to bolt’. Other jurisdictions aren’t as well regulated, which leaves that same door wide open and encourages poor practice.
Value for money is always a factor when deciding who to choose. In reality, there isn’t a great deal of difference in charges between QROPS providers. However, now and then, one company will attempt to undercut the competition with significant discounts. There are now several low cost QROPS available. However, Quality of service is just as important as costs. As the old saying goes: you get what you pay for!
In conclusion, when deciding on the best QROPS provider for your pension transfer, consideration should be given to the following:
- Value for money, rather than simply cost.
- Service: Ask your adviser about their experience with various QROPS providers and why one might be better than another from a service perspective.
- Investment options: Are they restricted or unlimited?
- Which is the most appropriate location?
- Tax implications both now and in the future.
- Does the provider offer flexible income payments and lump-sum payments?
Finally, you should draw up your own list of requirements. The above points cover the main issues, but you may have particular demands when searching for the best QROPS provider to match your needs.