Mathstone’s Expat Financial Advice Post-Brexit
Whatever happens with Brexit, and at this point it truly could be anything, Mathstone will continue to provide high quality expat financial advice post-Brexit. All of our clients should be reassured that their pension investments are in safe hands, and we are more than happy to answer any of your questions.
Expat Financial Advice That’s Based In The EU
Given the continued uncertainty about whether or not the UK will leave the EU with a withdrawal agreement in place, and if so, what that agreement looks like, we have taken the decision to establish a permanent presence in Cyprus and Spain. As a result, we are guaranteed to retain our access to EU markets and our authority to provide expat financial advice.
UK international wealth managers who have not taken similar steps are at great risk in the event of a No Deal Brexit. Depending on the politics of the situation, there will be a couple of options that they can explore. For example, if there is one EU country in particular that an investor is keen to do business in, they might seek approval from that member state’s regulator, the equivalent of the FCA, to do so under a National Private Placement Regime (NPPR). An NPPR authorises Alternative Investment Fund Managers (AIFMs) to market their work. Whether or not permission is granted is up to the member state. As a result, expat financial advisors who plan on relying on this method will find themselves in a far worse and riskier position than Mathstone.
With Mathstone, that uncertainty is taken away and you can be confident that your pension management and advice is in good hands.
We’ll Continue To Provide Expat Financial Advice On QROPS
Even in a No Deal Brexit, you will still be able to access and transfer funds to your Qualified Recognised Overseas Pension Scheme (QROPS). QROPS are designed in a way that allows them to be based in both EU and non-EU countries. That means your QROPS could be based in the UK, the EU country you’re living in or pretty much anywhere else in the world.
One of the biggest benefits of a QROPS has always been that you have greater choice over the currency your funds are in. With Brexit putting such a large question mark over the future British economy, it could be a wise move to have your funds in a different, more secure currency than sterling. It should just provide you with the added level of reassurance.
However, we should mention that there is a chance that an overseas transfer of funds to a QROPS could be subject to a 25% exit tax. That tax already applies to transfers made to countries outside of the European Economic Area. Whether or not it will apply to all overseas transfers post-Brexit will depend on the outcome of the second phase of negotiations, during the transition period, where the future relationship between the EU and the UK will be discussed in greater detail.
Get in touch if you’re interested in discussing a QROPS or SIPPs expat pension in more detail, or if you’re seeking independent financial advice on your investment choices.
Please note that some of the information on this page is only applicable to UK residents.