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.
|Lite||Full||Gibraltar||Malta||Isle of Man|
|QROPS Provider 1||£300 set up
|£625 set up
|QROPS Provider 2||£350 set up
|£625 set up
|QROPS Provider 3||£595 set up
|£895 set up
|QROPS Provider 4||£350 set up
|£845 set up
|QROPS Provider 5||£995 set up
|£995 set up
|QROPS Provider 6||£895 set up
|£1250 set up
|QROPS Provider 7||£295 set up
|£595 set up
|QROPS Provider 8||£250 set up
|£250 set up
|QROPS Provider 9||€756 set up
|€1,628 set up
|QROPS Provider 10||£350 set up
|£645 set up
|QROPS Provider 11||£500 set up
|£750 set up
|QROPS Provider 12||Nil set up
|Nil Set Up
|QROPS Provider 13||£650 set up
|£750 set up
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.
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
Please send us an email if you need pension transfer guidance & the latest QROPS fees.QROPS Fees Comparisons by Richard Malpass