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GBPensions secures new partnership for £30K Defined Benefits pension transfers to NZ
Problems with DB pension transfers of £30,000+ have arisen recently as an inadvertent result of the UK's new Pensions Freedom rules. Under these guidelines, members of DB pension schemes wishing to move their funds to New Zealand must now seek advice from a financial adviser who is not only authorised by the UK authorities but who also has the appropriate UK pension transfer qualifications. An anomaly in the UK regulatory system means that very few UK advisers are permitted by the UK financial authorities to give such advice though – even if they have the appropriate UK qualifications and are willing to do so.
The outcome would be that many of those affected would not be able to transfer their pension schemes into potentially more tax efficient savings vehicles in NZ because they would not be able to receive the appropriate UK advice and, therefore, obtain the required, signed certification.
Fortunately, GBPensions has managed to overcome this serious issue. Speaking from the company's offices in Rosedale on Auckland's North Shore, Tony Chamberlain explains, "In order to be able to always act in our clients' best interests, we had to get this done. We spent weeks hunting for, talking to and meeting with potential candidates but, even with our longstanding associations in the UK and internationally, we really struggled to find a suitably qualified UK adviser."
During the search GBPensions found several advisers willing to help, but in several cases their compliance managers and /or PI insurers would not permit it. Others wanted to charge clients an additional NZ$10,000 – thus negating any potential tax savings in many instances.
"The problems we encountered during this process lead me to believe that many other NZ advisers, for one or more reasons, will be unable to offer prospective clients the opportunity to transfer their UK pension schemes," comments Tony. "In order to ensure that their clients do not miss out on the potential benefits a transfer could offer, GBPensions would certainly welcome the chance to partner with Authorised Financial Advisers who find themselves in this most frustrating position."