UPDATE: Scam Watch

BEWARE:
Cold calls encouraging a ‘Review’ of your pensions

The Financial Conduct Authority (FCA) in the UK started a TV advertising campaign about Scammers &'Free' Pension Reviews. Financial Pages in Spain advises that this is exactly how many scammers operate in Spain. The watch word is CAUTION

Be mindful that unregulated companies are cold-calling consumers to offer high-risk investment advice.

They are also sending emails, text messages and using online advertising. That was the warning in the UK but in Spain they also advertise in newspapers and it is often difficult to distinguish the regulated from the unregulated.

If you let me know, I can tell you if a company is NOT regulated. Just Email 

The aim of the 'review' is to encourage you to move money from an existing personal or occupational pension to a self-invested personal pension (SIPP) or a small self-administered scheme (SSAS).

The money is then typically invested in investments not regulated by the FCA, such as overseas property developments, forestry or storage units known as store pods.

Such investments can be enormously risky and can be difficult to sell and consumers could lose all the money they move, reducing what they have to live on in retirement.

And they also have less protection should anything go wrong and may not be able to complain to the Financial Ombudsman Service (FOS).  Again, also, the FOS does not cover advice in Spain.

The majority of companies offering the reviews are not authorised by the FCA, although some falsely claim they are acting on its behalf. Others claim to be working with the government following the Budget commitment in March to introduce a free advice service for people at retirement.

Please Note:

Financial Pages in Spain ONLY refers readers to regulated advisers. In fact I am more than happy to give you the FCA registration details of anyone I recommend. Feel free to email me to be recommended or I can check out an adviser you have concerns about. Email

Professionals

·         My doctor is qualified, works in a practice with other professionals and I trust him   without hesitation

·         The veterinary practice we take the dog to is qualified I even know where he     studied and that he is a specialist in small animal health

·         My solicitor who I have known for many years is qualified in both UK and Spain

·         I could go on but I’m sure you’ve got the message. For contact My Email

David Goodall
Financial Pages in Spain

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Getting a Highly Qualified second opinion

Many changes will take place from January 2021.

Financial Pages in Spain undertakes 'DUE DILIGENCE' to ensure that ALL financial advisers and their firms are correctly qualified, authorised and regulated  and have the necessary experience and knowledge.

APRIL 2020 UPDATE;
In these difficult times it's good to know that you can see an adviser with modern technology. After initial contact by email, phone and text, but only if necessary, it is possible to make video calls

Financial Pages in Spain is happy to provide this service, referring you to a qualified, regulated and independent financial adviser

I have been finding for sometime that many people come to me for a ‘second opinion’ For many differing reasons but they are unhappy with the advice they have been given and send me examples.

Rather than guesswork people also ask me to recommend Accountants, Lawyers, Surveyors and other professionals.

Some of the things people have said to me:

• ‘ It  looked like a mass produced report with just my name and personal details changed’

• ‘ They wanted an up front fee even to talk to me, funny they never mention that in their       adverts’

• ‘ I wasn’t convinced the advice was correct’

But they trust ‘Financial Pages in Spain’ and I am receiving comments which show a great deal of respect. I’ll try to help. Email me In return I refer readers of Financial Pages in Spain to advisers who pass a strict DUE DILIGENCE test. 

Can you help me to help you?

• Please send me both good and bad examples of reports you have received, from financial advisers, I’ll respect your privacy
• Tell me the names of Advisers who've given you bad advice
• If the fees, charges and commissions are hidden in a report and not openly disclosed, please send examples

This sort of information will help everyone and help eradicate some of the greedy practices.

I may not have intended it when I started out but it seems that Financial Pages in Spain is becoming the respected second opinion.

* * * * * * *

Whatever your query, please contact  Email me
 is on this link

David Goodall

Financial Pages in Spain

Email me

Further Reading from Financial Pages in Spain

Scam Watch

Readers’ Favourites

The Finance Tour? Workshops? Seminars? BUT who's giving the Financial Advice?

Thinking of attending one? Did you think they were independent? Are the advisers qualified?

Please consider this BEFORE you attend

Important

Any of you who have read my previous blogs will know how passionate I am about the importance that Expats take advice from a suitably qualified, experienced and regulated, independent financial adviser.

Believe all Adverts?

So, when I saw the publicity for this  – The Finance Tour is the only truly independent investment and pensions seminar in Spain Really? I thought to myself, “this is something I should look at”. If 3 high profile product providers have come together to participate in an independent tour, this is something I must comment upon.

However, from my many years working in the UK, I know that product providers will never endorse one adviser over another, irrespective of how qualified or experienced an adviser might be.

I decided to investigate further. All 3 providers told me that they would never knowingly endorse one adviser. It's not in their interests!

Someone has gone to great lengths to make consumers believe that 3 product providers have come together to offer their expertise to British Expats in Spain, and to help them, they have invited one “Adviser” firm, chosen from the many that operate in that area. This gives the false impression that the 3 product providers are in some way endorsing that particular firm above all others. THEY DO NOT!

Due Diligence

Now, all the above might be fine if the adviser firm in question could pass my due diligence process but they don't!

As you may know, I am able to help Expats to find an adviser who is suitably qualified to advise them. I have a strict due diligence process and I would never send a consumer to an adviser until they pass my test.

I have carried out my due diligence on the advisers working for the firm in question and they are not a firm that I would be able to refer my readers to for advice.

'Financial Pages in Spain' averages over 13,000 readers per month

David Goodall

Financial Pages in Spain

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Additional reading:

Scam Watch

Readers’ Favourites

Hidden Costs & Charges

UK Pension Schemes or Plans but you have emigrated?

Ask for a review, without obligation, with a UK AUTHORISED adviser with experience of helping expats. UK Budget changes to Pensions make this VITAL

Types of schemes, options and regulated advice

It seems that every year, in the UK, there are new laws, new regulations, new ideas or changes to pension plans or schemes. Just to complicate matters there are still many arrangements which have different names! The changes announced in March 2015 are fundamental

UK Pension Plans and Schemes

Here are a list (and it probably isn’t exhaustive) of the titles sometimes used for pension plans. If you have one but don’t understand what it is, please email me.

PPP – Personal Pension Plan

SIPP – Self Invested Personal Pension

GPP – Group Personal Pension Plan

S32 – Section 32 Pension Transfer Plan

ShP - Stakeholder Pensions

PPTP – Personal Pension Transfer Plan

UP – Unsecured Pension

ID – Income Drawdown

ASP – Alternatively secured pension     

AVC – Additional Voluntary Contributions

FSAVC – Free Standing Additional Voluntary Contributions

COMPS – Contracted Out Money Purchase Scheme

CIMPS – Contracted In Money Purchase Scheme

EPP – Executive Pension Plan

RAC – Retirement Annuity Contract

Section 226 Annuities

Superannuation Schemes

SSAS – Small Self Administered Scheme

OPS – Occupational Pension Scheme

DBS – Defined Benefits Scheme

FSP – Final Salary Scheme (DBS & FSP are the same – different names)

S2P – State Second Pension

GPS – Graduated Pension Scheme

SERPS – State Earnings Related Pension Scheme

BSP - Basic State Pension

SRP – State Retirement Pension (BSP & SRP are the same)

Maybe, you’ve even got something with a name not covered here! Please email me if you want anything explained!

Even when you have understood the plan or scheme you have, there could be a whole variety of rules and regulations that you don’t understand.

What are Your Options?

This is not meant to be exhaustive and is generic, you really need to consult a reputable authorised pension adviser.

·        Do nothing

This is very much the worst option. If your circumstances are changed, including emigrating, you need to know the affect on your pension arrangements

• Take the benefits exactly as they were intended but transfer the pension income to Spain

This is often a good option but still needs to be reviewed. Circumstances change and you might have benefits you no longer need or you want to change the date of retirement. Many schemes have restrictive clauses which can affect your options and rights. You also need the correct tax treatment of your income.

• Bring your pensions together in a QROPS

For most people who emigrate, this is the best option, though it also needs caution and advice from a specialist. I recommend the ‘further reading’ below. In particular, beware of adverts which promise cash settlements and benefits before normal retirement date. If it sounds too good to be true, well you know the rest. Please email me for details of a genuine specialist.

• Bring your pensions together in a SIPP

You can certainly use this as an option. If your emigration is not permanent it could be a good one. However, the self investment aspect of a SIPP is often available within a QROPS. Not all SIPP trustees will allow investors who live outside the UK, so you certainly need specialist advice.

• Best decision : Review your pension options with an authorised UK pension transfer adviser

August 2014

Warning from HM Government about UK Pensions

From Steve Webb, Pensions Minister

“If cold callers offer you massive returns for your pension pot that are just too good to be true, it is because they are.”

Sunday Times August 10^th 2014

Warning

For most people, their Pension Fund is the biggest or second biggest asset. BEWARE Scam Watch as this post warns

David Goodall

Financial Pages in Spain

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Further Reading:

QROPS Qualifying Recognised Overseas Pension Schemes

Pension Terms & Expressions

Do you transfer money, bank to bank on a regular basis? You can reduce the ‘currency risk’ with La Torre Fx – Foreign Exchange This service is also better than most banks for one off transfers

                              

Spain – The Sun still Shines and Lifestyle is Healthy

Spain is great  for holidays, working, living & retirement

The beaches are clean, the Mediterranean is still blue, the food is fresh, lots of cheap flights, great deals on hotels and apartments but forget all that the headlines are bad! UK Press always give SPAIN a hard time

Personal Experience 

We bought our first house in Spain on 7^th June 2002; it was memorable for another reason. It was the World Cup in Japan and South Korea, England played Argentina and won 1 – 0 thanks to a penalty by David Beckham.

I thought I’d write down a few reasons why we bought and let you, the reader, decide whether some, all or none of the factors still apply. This is random in no particular order;

• The climate is great and the sun shines all year round
• It’s two and half hours from home
• The flights are cheap if your dates are flexible
• We love the lifestyle, street markets, restaurants, entertainment, the beach and I could go on
• House prices are cheap compared with the UK
• A second home is for the long term, especially retirement
• The exchange rate is more favourable than it has been
• We needed and easily got a 50% mortgage
• We found someone reliable to look after the place when we are not there, giving peace of mind
• The family think it’s a great idea

I could go on but I think those 10 reasons cover most of why we bought in Spain.

The fundamentals haven’t changed and there are bargains to bought. There is now also plenty of evidence that people like the concept of Rent before you Buy.

So here are three ideas

• Rent before you buy in Spain

• Always get Professional Advice

• BEAT the BANK get better rates for foreign exchange

Viva Espana

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

PS

From the ‘Guardian’ in 2013

Spanish have the HIGHEST healthy life expectancy in Europe

Read the article

Explaining Terms and Expressions - Pensions

Explaining terms & expressions is important but nothing beats Regulated and Qualified Financial Advice

·       Cut through the jargon

·       Check Further Reading

·       Beware: Unauthorised ‘advisers’ about!

A Day
6 April 2006 was the day the UK Government pension simplification rules came into effect.

ASP - Alternatively secured pensions
At the age of 75 an alternatively secured pension would allow an individual withdrawal of income, similar to an unsecured pension fund such as income drawdown

AVCs – Additional Voluntary Contributions
A pension top-up for an occupational pension scheme. The scheme members pay contributions into an arrangement run by the employer to boost the main pension.

FSAVCs – Free-Standing Additional Voluntary Contributions
A pension top-up policy for an occupational pension, but separate from the employer’s pension scheme and normally run by an insurance firm.

CNMV
Comision Nacional del Mercado del Valores is the principal financial services regulator in Spain and responsible for authorising investment products. A CNMV adviser can be recommended, please click here

DGS
Direccion General de Seguros y Fondos de Pensions is the Spanish regulator for insurance products which can be marketed in Spain. Email me to be referred to an authorised adviser

FCA
Took over from the FSA in April 2013. The Financial Conduct Authority is the UK's financial services regulator. The FCA also ‘passports’ authorised advisers to operate in Spain. For a recommended adviser click 

Group Personal Pension
A type of personal pension offered by some employers but not classified as occupational (see money purchase pension).

Lifetime annuity

A lifetime annuity converts money from a pension fund into pension income, which is taxable. There are different types to suit different circumstances and generally treated favourably for tax purposes in Spain.

MiFID
Markets in Financial Instruments Directive is the EU legislation which covers investment intermediaries and their activities. It also enables, for example FCA approved advisers to be' passported' into other EU countries such as Spain .

Money purchase pensions
Some occupational pensions and all personal, group personal, stakeholder, FSAVCs and some AVCs are money purchase pensions. The contributions are invested in, for example, the stockmarket or bonds. The size of the fund depends on the contributions and how well the investments perform. At retirement, there is a choice of options to provide you with a retirement income.

Occupational pension
These are only available through employers and run by pension scheme trustees. There are two types – salary-related (defined benefit) and money purchase (defined contribution).

Pension Liberation
It should be made clear that Pension Liberation is illegal. Typically, unauthorised advisers offer access to your pension before the statutory retirement minimum age of 55. Proven cases attract a penalty of up to 55% of the funds liberated.

Personal pension
A pension policy taken out by an individual from an insurance company or another financial institution and into which personal contributions are made. It may also be offered by employers.

Protected rights pension
This is the part of a pension fund which was used to contract out of the UK State Second Pension (SERPS or S2P) that must be used to buy a protected rights annuity.

QNUPS -  Qualifying Non UK Pension Scheme, which meets the criteria set by the regulations the UK government brought out in February of 2010. This means that for a UK or non-UK resident, there is an opportunity to make contributions to overseas schemes, established as QNUPS, with the knowledge that those funds will be sheltered from UK IHT. Individual advice should be taken in all circumstances from a regulated and authorised adviser. Please email for a recommendation. Also see reading below

QROPS - Qualifying Recognised Overseas Pension Schemes
These became available from A-Day. It is a pension scheme set up outside the UK that is regulated and recognised for tax purposes as a pension scheme in the country in which it is located. QROPS have been established in various countries across the world, many in jurisdictions with beneficial tax rules. For specialist advice click here Also see reading below

Salary-related pension scheme (final salary or defined benefit)
A type of occupational pension. The amount of pension you get is worked out on your salary at or near retirement, or when you left employment, and your pensionable service.

Stakeholder pension
A type of personal pension that has to meet certain standards set by the UK Government. An individual can take one out or it may be available through an employer, but is not classified as occupational. 

State Pension
The UK Pension Service (part of the Department for Work and Pensions) will pay the basic State Pension based on an individual’s National Insurance contribution record. In addition, individuals may also qualify for the State Second Pension based on their own earnings and National Insurance contributions.

State Second Pension
The State Second Pension is an additional State pension paid on top of your basic State Pension. This was called SERPS. Self-employed people cannot build up a State Second Pension.

Tax-free lump sum
More accurately, tax free cash should be called Pension Commencement Lump Sum (PCLS). This is an amount of cash set by tax law which you can take at retirement free of tax under UK rules. Salary-related occupational pension schemes may have different rules on the amount of tax free cash you can take.

Unsecured Pension (Income Drawdown)
This is an alternative to buying an annuity but provides an income whilst the pension is still invested. At age 75, the unsecured pension must cease and be replaced by either a Lifetime Annuity or ASP. For non UK residents or those intending to become non-resident, QROPS could be another alternative.


Pensions Advisers, including the ones that I recommend, will be happy to cut through the jargon. Email me for a recommendation


Further reading

QROPS 2015

QNUPS 

La Torre Fx – Foreign Exchange



David Goodall
Financial Pages in Spain

davidgoodall.spain@gmail.com

Unauthorised Advisers UPDATE

I have written about this before but I have credible information that the problem is getting worse.

Back in November 2010 I wrote this Unauthorised Advisers about

Many of the Financial Advisers operating in Spain are doing so without any regulation, with no authorisation and if anything goes wrong YOU the client has no recourse to putting this right. The only acceptable Spanish Regulators are;

CNMV

Comision Nacional del Mercado del Valores is the principal financial services regulator in Spain and responsible for authorising investment products. A CNMV adviser can be recommended, please click here

DGS

Direccion General de Seguros y Fondos de Pensions is the Spanish regulator for insurance products which can be marketed in Spain. Email me to be referred to an authorised adviser

However it is also right to point out, that, using European law, UK regulated firms CAN apply to be ‘passported’ into Spain. Under those conditions the adviser MUST be authorised in the UK. A recent change in the rules of the Financial Services Authority, surrounding qualifications means that many advisers are no longer authorised.

Also there will be future changes to the FSA which will be covered here at Financial Pages in Spain.

To protect yourself, please ask for help. I can

·       Check the regulation of an adviser you already know

·       Check if an advertisement you see is from a valid company

·       Recommend properly qualified and regulated advisers who ARE authorised in Spain

Just email me your details with anything you want to ask

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

UK Autumn Statement 2012

From a Spanish perspective

There are many expats, especially pensioners and expat workers, in Spain who have a close vested interest in the UK Economy. There will be much more analysis over the coming days but I thought an outline summary would help.

If you would like a professional analysis from UK economists please email me and I’ll give you the link.

• Many pensioners in the UK & Spain with Income Drawdown or QROPS have their income determined by ‘GAD’ rates. These are increased from 100% to 120% from April 2013 which is the reverse of his previous policy. To review your individual circumstances please email me. The gentleman is for turning!

• Two measures will make QNUPS (Qualifying Non-UK Pension Schemes). Details http://ukoverseaspensions.blogspot.co.uk/2012/09/qnups-qualifying-non-uk-pension-schemes.html

Firstly, the ‘Lifetime Allowance’ which is the maximum that anyone can hold in a Pension Plan, is being reduced from £1.5 million to £1.25 million. This doesn’t affect huge numbers but when interest rates are so low its like reducing peoples pensions.

Secondly, the annual amount which any UK taxpayer can put in their pension scheme is reduced from £50,000 to £40,000.

If this might affect you or you want information, please email me

• Clamping down on tax avoidance and evasion which "I view as morally repugnant" as Mr Osborne put it. He ought to read my post! http://expatsfrombritain.blogspot.com.es/2011/04/tax-avoidance-and-tax-evasion.html  Like most politicians and journalists, he doesn’t help to clarify the difference

There are many other facets to the Autumn Statement and much of it is economic analysis but I wanted to publish the key details quickly. If any other factors come to light, later, I will produce an update. It could be worth putting this in your favourites and checking.

If you have any specific queries, please email me.

David Goodall

Financial Pages in Spain

Email: davidgoodall.spain@gmail.com

Financial Pages in Spain - Key Issues

Since starting in August 2010, Financial Pages in Spain has grown to over 150 posts. Whilst time moves on, many of the issues remain the same, but need updating. This is a summary of the most popular posts over the last year, by important categories;

Pensions

• UK Pension Scheme but you Live in Spain

This post lists 30 different types of UK Pensions Schemes to help readers understand what the might have. There are then a series of questions and answers

http://expatsfrombritain.blogspot.co.uk/2011/08/uk-pension-scheme-or-plan-but-you-live.html

• QROPS – Comparing Jurisdictions

Following very substantial changes to the rules and regulations, in April 2012, QROPS (Qualifying Recognised Overseas Pension Schemes) have changed substantially. Here is an update of the key jurisdictions for QROPS

http://expatsfrombritain.blogspot.co.uk/2012/08/qrops-2012-comparing-jurisdictions.html

• QNUPS (Qualifying Non-UK Pension Schemes)

These were introduced in 2010 under arrangements to shelter retirement income producing assets from UK Inheritance Tax (IHT). British nationals who are Spanish residents often, mistakenly, think that IHT doesn’t apply to them

http://expatsfrombritain.blogspot.co.uk/2012/07/qnups-qualifying-non-uk-pension-schemes.html

• UK Overseas Pension Schemes

This summary will be of interest to expats who work, are near retirement or already retired. It includes a summary of Section 615 schemes for those who work in Spain.

http://expatsfrombritain.blogspot.co.uk/2012/08/overseas-pension-schemes-updated.html

Our hard earned pensions are often our second biggest asset (even if you didn’t know it). You need PROFESSIONAL ADVICE to look after your future income and protect its capital value. Please email to be referred to an adviser I have thoroughly checked.

Taxation

• Tax Avoidance and Tax Evasion

These issues are topical though I am regularly annoyed that newspapers, broadcasters and politicians confuse the two. Its easy to deal with tax evasion – it’s illegal. Tax avoidance is legal but much more complex. Seems to me that most taxpayers, in any country, want to AVOID tax as long as they are not illegally EVADING tax!

http://expatsfrombritain.blogspot.co.uk/2011/04/tax-avoidance-and-tax-evasion.html

• Five Non-Resident Taxes

This is an issue which never fails to amaze me.  I’ve produced a PDF which anyone can request. I suspect that everyone who owns property in Spain should be checking out. Just email me

http://expatsfrombritain.blogspot.co.uk/2012/04/five-spanish-non-resident-taxes.html

• Spanish Inheritance Tax (ISD) - Impuesto sombre sucesiones y donaciones

The first important fact that expats and property owners should know is that UK IHT and Spanish ISD are not covered by a Double Taxation Agreement or Treaty. British nationals are often shocked to learn that ISD is payable on the death of the first spouse or partner.

http://expatsfrombritain.blogspot.co.uk/2011/06/spanish-inheritance-tax-isd.html

Whatever your taxation position and even your liability in the future, planning is key. Email and I’ll link you to a professional if you give me a brief outline.

Investment Planning

• Why Invest Offshore?

Well certainly NOT for tax evasion! Offshore investment suits a surprisingly large number of expats and property owners. It’s certainly worth investigating but only through professional advice.

http://expatsfrombritain.blogspot.co.uk/2012/07/why-offshore-financial-planning.html

• Tax Efficient Savings for Expats

This includes long term investments as well as traditional savings. For the expat there is often the added complication of foreign exchange differences too.

http://expatsfrombritain.blogspot.co.uk/2012/03/tax-efficient-savings-for-expats.html

Other Important Issues

• 10 Things that some advisers won’t tell you

When someone first told me, I didn’t believe it! Many advisers, even those saying they are regulated by FSA, refuse to disclose commission which has been a UK rule since 1993. These nine other abuses too. I can refer you to advisers I have carefully checked if you email me.

http://expatsfrombritain.blogspot.co.uk/2012/09/ten-things-some-advisers-wont-tell-you.html

• Getting a Second Opinion

Financial Pages in Spain will gladly give a second opinion to any advice received – just ask!

http://expatsfrombritain.blogspot.co.uk/2012/09/getting-second-opinion.html

• La Torre Fx – Foreign Exchange

It’s online and available 24 hours per day, every day of the year. After setting up the account, it can be used over and over again. Your first use takes a little longer to comply with necessary ID checks, but after that it’s super-quick! The rates offered have been specifically targeted at beating the banks and giving you the bonus

http://expatsfrombritain.blogspot.co.uk/2012/05/unrivalled-foreign-exchange-la-torre-fx.html

Enjoy Spain – avoid the usual pitfalls and can I suggest that you follow ‘Financial Pages in Spain’

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David Goodall

Financial Pages in Spain