Fees in Setting Up QROPS
Most QROPS fees are fixed monetary amounts, rather than a percentage and usually consist of a set-up fee and an annual fee. There are usually other fees for incidental transactional costs such as reprinting a valuation or making an ad-hoc payment to your bank account. The fees involving setting up and maintaining your QROPS can vary widely. With there are hundreds of schemes on the market and all provide different product offerings so giving you a ball-park figure could be misleading.
Due mainly to competition, QROPS are not as expensive as they once were but there are still a lot off expensive schemes that offer no added-value over their more competitive counterparts so it is worth shopping around or at least having your financial advisor give you some comparisons.
At the time of writing, there are basic schemes which can be used for as little as £395 a year. There are also very complex schemes for US residents charging upwards of $3,000.
Bear in mind that above we are referring only to the QROPS charges. There are likely to other charges relating to the investments and their management, plus transactional charges. Be aware that many offshore financial planners make substantial commissions by adding in multiple layers of charges into investment proposition.
We strongly advise you to shop around and get a second opinion on any investment proposal that you have received. Many financial advisors in the offshore market are not qualified or licensed to advise you on investments or pensions. You should ensure that they are suitably qualified and their investment recommendations are properly regulated in a major economy, such as the UK, US or Europe. Regulation in these countries ensures transparency and provides security, recourse and compensation should something go wrong.
What Does a QROPS Cost