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QROPS Fees Comparisons


QROPS fees consist of three elements:

  • The QROPS trustee fees – Trustees are responsible for ensuring that the pension scheme is run properly and that members’ benefits are secure (see more below)
  • The investment wrapper or investment platform fees – this is where pension monies are transferred and reinvested into investment funds or ETFs
  • The financial adviser fees – the IFA’s role is to create a financial plan for the life of a client, monitor investments and send periodic portfolio updates to clients

Average QROPS Fees

The average QROPS fees are 300 – 600 GBP set up fee and 500 – 800 GBP per year for a “lite QROPS” which is generally pension transfers under 100,000 GBP.

The average QROPS fees are 600 – 1000 GBP set up fee and 800 – 1200 GBP per year for pension transfers over 100,000 GBP.

QROPS Fees Comparison Table

We will look at the most popular QROPS providers for Gibraltar, Malta & the Isle of Man below. Please see the QROPS fee comparison table below.

QROPS
  Provider
Lite Full Gibraltar Malta Isle of Man
QROPS Provider 1 £300 set up
£495 annual
£625 set up
£845 annual
Yes Yes Yes
QROPS Provider 2 £350 set up
£650 annual
£625 set up
£845 annual
Yes Yes No
QROPS Provider 3 £595 set up
£545 annual
£895 set up
£895 annual
No Yes No
QROPS Provider 4 £350 set up
£650 annual
£845 set up
£845 annual
Yes Yes No
QROPS Provider 5 £995 set up
£995 annual
£995 set up
£995 annual
Yes No No
QROPS Provider 6 £895 set up
£895 annual
£1250 set up
£895 annual
Yes No No
QROPS Provider 7 £295 set up
£370 annual
£595 set up
£870 annual
Yes No No
QROPS Provider 8 £250 set up
£475 annual
£250 set up
£475 annual
No Yes No
QROPS Provider 9 €756 set up
€1,023 annual
€1,628 set up
€1,628 annual
No Yes No
QROPS Provider 10 £350 set up
£525 annual
£645 set up
£895 annual
Yes Yes Yes
QROPS Provider 11 £500 set up
£900 annual
£750 set up
£900 annual
Yes Yes Yes
QROPS Provider 12 Nil set up
£530 annual
Nil Set Up
£900 annual
Yes Yes No
QROPS Provider 13 £650 set up
£750 annual
£750 set up
£950 annual
No Yes No

The table above is correct as of 16th March, 2019. We are not naming providers as the fees change too quickly.

Please email us for the latest QROPS fees and we will provide you with a best solution. You will need to send us:

  • a copy of your passport
  • a copy of your latest pension transfer statement

We will then provide you with the latest fees & recommendation.

We will also need you to complete:

  • full “fact find”
  • pension transfer questionnaire
  • risk questionnaire

Click here if you are looking for a QROPS comparison of the best jurisdiction to transfer your pension to.

Investment Fees

Once your pension monies have been transferred to a QROPS, your pension can be reinvested. As far as I am aware, no QROPS companies allow direct investments. Most companies require you to reinvest via an offshore portfolio bond.

Investment Wrapper Fees

The big four are: Old Mutual International, Generali, Friends Provident International or RL360.

Annual Fees: Typically 1.0% -1.4% per year

Administration charge: 110 GBP – 150 GBP per quarter

Dealing Fees: 20 GBP – 50 GBP

Usually, an investment wrapper locks you in for a 5, 8 or 10 year period. This isn’t a problem if you are investing in a pension over a 10 – 30 year period. However, it may be an issue if you are transferring your pension and then looking to get full “flex-access” within the next five years, as there could be a hefty exit penalty of up to 10%, reducing by 1% per year.

However, the annual fees on portfolio bonds drop to 0% after year 10, making them an excellent investment if you have a 10 year plus investment horizon.

Investment Platform Fees

Investment platform tend to be more like “shopping carts” to purchase investment funds. Often, there isn’t as much choice as through an investment wrapper.

The fees will vary from platform to platform and can be 0.5% – 1.0% per year. Usually, there are then higher entry fees to enter into each investment fund or UCITS that you want to purchase.

Platforms are a better choice if you need access to your money within the next five years.

Financial Adviser Fees

These will vary and may depend on the level of service received. Typically financial adviser fees are around 1.0% p.a.

Miscellaneous QROPS Fees

The table above shows most of the fees that a client will face, however for “bespoke QROPS” pension schemes there may be additional costs. Below are some examples of typical costs I have seen from various providers.

  • Transfer out to another QROPS or SIPP £995
  • Transfer more than 2 pension schemes £150 per extra scheme
  • Establish Income Drawdown £260
  • Regular Payment of Pension Income £30
  • Pension Drawdown Review £215
  • Triviality £500
  • Payment of Death Benefits £995
  • Illustration £150
  • No Adviser £100
  • Ad-hoc Payment from a Drawdown Fund £260
  • Offshore Bond with Gated Assets Per Annum £200 Note 4
  • Non-Standard Assets Purchased Directly Per Annum £200 Note 5
  • Corporate Action Processing £50
  • Reproduced or Duplicate Documents Per Document £25
  • Unlisted Shares £300
  • Commercial Property £700
  • Overseas Commercial Property £1,995
  • Property Annual Fee Annually In Advance £500
  • Divorce in Pensions £995
  • Administration extras £250 / hour
  • Bank charges £25
  • Currency Exchange Charges 2.5%

The Role of the QROPS Trustee

The QROPS trustees are in charge of making sure the scheme is run correctly. They make the lump sum & annual retirement payments to members. It is their job to make sure that a clients’ funds are not invested in risky assets.

Their role includes:

  • Acting in line with the trust deed and rules
  • Acting in the best interests of the scheme beneficiaries
  • Acting impartially
  • Acting prudently, responsibly and honestly
  • The trustees’ powers
  • Click here for the Malta trustee regulations

You can read more here about trustee guidance from the pension regulator. You can read the Malta-specific trustee regulation here.

Please send us an email if you need pension transfer guidance & the latest QROPS fees.

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