The Qualifying Recognised Overseas Pension Scheme (QROPS) was introduced in 2006. It is a type of overseas pension scheme that HMRC (HM Revenue and Customs) recognises as eligible to receive transferred funds from UK registered pension schemes. However, whilst a QROPS offers a number of attractive benefits, many QROPS pensions have been mis-sold or mis-managed – often because the legislation surrounding QROPS is quite complex.
This form of pension arrangement operates outside the UK, and to be able to receive transferred funds from a UK-based pension fund, strict rules apply. In order to secure a QROPS qualification, the pension scheme needs to be set up in a way that meets the requirements of UK tax law. The scheme must also comply with applicable pension legislation in its own jurisdiction. In addition, people under the age of 55 cannot access funds in a QROPS scheme, except in very specific circumstances.
HMRC has a list of pension providers that have confirmed that they meet the required legal criteria for QROPS pension scheme eligibility. But, even if on this list, there is no guarantee that the scheme meets all the necessary legislation.
We help people in England & Wales claim back what they are due following QROPS pension mis-selling. We can even help you get your money back if the provider or adviser has gone out of business.
Claiming with us is straightforward. It is free to sign up, and we act on a no-win, no-fee basis. If you believe that your QROPS pension was mis-sold, contact us to find out how we can help.
You should only think about moving your pension to a QROPS arrangement if you receive good and suitable financial advice. This is because you might lose other benefits as a result of the transfer. Additionally, a QROPS transfer itself could leave you liable for certain tax charges.
A QROPS scheme can seem like a very appealing option for your pension. There are potential tax benefits under such a scheme, which your financial adviser will discuss with you. Your adviser will then help you to decided if a QROPS scheme is an appropriate option for your personal circumstances. With a QROPS pension, you can pretty much avoid paying UK income tax and substitute an alternative, normally lower rate of tax charged in your new country of residence. However, despite its benefits, a QROPS pension can be problematic and sometimes mis-sold to customers.
Over the past few years, certain QROPS schemes have been closed down, either because they were found not to be compliant with tax regulations or because they were intentionally being used to exploit tax loopholes. So, any scheme that has failed to adhere to tax rules is in essence already unlawful. Also, with both public and political opinion running against tax avoidance initiatives, even people with QROPS pensions that are currently acceptable to HMRC might not be safe for long.
As well as this, legislative adjustments could mean schemes like these become unlawful and would leave pension investors vulnerable to penalties.
If you think you have bought a mis-sold QROPS pension scheme and have suffered financial losses as a result you could be eligible for compensation. It is expected that any financial adviser in the industry should provide consistent, suitable, and high-quality advice, so if any of the following are applicable to you, claims could be made:
You were not told that QROPS carries risks
If you have been a victim of pension mis-selling, we can help you make a no-win, no-fee claim for compensation. Contact us today for a free, no-obligation assessment of your case.
Where multiple people have received negligent or fraudulent pension advice from the same professional advisor/company, we can help them to recover their losses collectively. Group actions can be a powerful tool and can have a bigger impact than a single claim.
CONTACT US TO DISCUSS A PENSION MIS-SELLING GROUP ACTION CASE
Here are some of the questions our clients have asked our expert lawyers about making a SIPP, QROPS or other personal pension mis-selling claim.
Common examples of pension-mis-selling include where someone has:
Many victims of pension mis-selling are targeted by unregulated salespeople via cold calls using hard-sell, pushy techniques. Often victims of this mis-selling are passed to regulated financial advisers to facilitate the inappropriate transfer. The motivation behind this is usually the generation of fees or commissions for the advisers.
A pension is not necessarily mis-sold if it does not perform as well as you hoped it would. Likewise, some investments are unpredictable by nature, and if you have a high-risk pension, that doesn’t necessarily mean that you have been mis-sold. However, your financial advisor should have told you about the level of risk involved, and if you were given unsuitable or misleading advice about the potential returns, you could have a claim.
Yes, if your financial advisor advised you to transfer from a workplace pension to an unsuitable scheme and you can no longer access your retirement funds because the provider or adviser has since gone out of business, you may have a claim.
The Financial Services Compensation Scheme (FSCS) protects consumers when financial firms fail. If a UK-regulated adviser has given bad advice concerning a pension transfer, and the provider or advisor has since gone out of business, the FSCS may pay compensation up to £85,000.
To make a professional negligence claim, you need to demonstrate that you were owed a duty of care, that the professional involved breached this duty, and that this breach caused you to suffer a loss. This can be hard to prove, as a professional is not expected to be right 100% of the time.
To win your case, you must show that another experienced professional in the same field would have given different advice, or that the professional failed to follow recognised good practice. We have a history of effectively handling these types of cases and can help you make a successful claim.
The result of pension mis-selling can be devastating. Victims might have:
There are two main funds available to help victims of pension mis-selling:
You can make a mis-sold pension claim without a lawyer. But while a DIY mis-selling claim could save you solicitor’s fees, in the end, even if you win, you might walk away with less compensation. This is often due to a lack of understanding over the law/procedures, which can put individuals at a disadvantage when up against savvy (and sometimes aggressive) defence lawyers. And, of course, if you lose your case, you will likely have to pay the other side’s costs. Because KP Law offers no-win, no-fee funding arrangements, you benefit from expert legal support without worrying about costs.
If you were persuaded to transfer your pension to an unsuitable scheme, you might have been mis-sold, and we can help you to claim. We help our clients claim back what they are due via both the FSCS and the FOS. Signing up is straightforward and costs you nothing as we act on a no win-no fee basis.
Contact us to discuss your case. Signing up is straightforward and costs you nothing as we act on a no win-no fee basis.
You will only have to pay anything if you win. You will not have to pay anything upfront. Any payment would only come out of the money that we recover on your behalf. We will conduct the claim for you under a no-win, no-fee agreement. If you win, our fees will be deducted from your damages.
Each case is different, but many of those affected by pension mis-selling could be owed many thousands of pounds.
On 29 March 2023, the government published a new briefing paper which provides information on pension scams.
Just 29% of pension fraud reports are sent to the police. In a bid to tackle fraud, the government has launched its new fraud strategy.
The UK is banning cold callers from selling financial products in a bid to crackdown on scams. The blanket ban – which covers unsolicited calls offering any financial product – also extends to legitimate schemes and investments.
KP Law has some of the most skilled investment fraud & mis-selling lawyers in England and Wales. Here are just some of our success stories.
With innovation, resources and expertise, KP Law fights for justice for each and every client.