01 SEP 2024

Technical Newsletter - September 2024

Issue 7 - September 2024

 

New dealing process for RL360 and Friends Provident International

A new process was implemented with effect from 15 July 2024, resulting in RL360/FPIL Dealing Instructions (DIs) no longer requiring a signature from IFGL Pensions. The new process will see the Risk Assessment carried out by IFGL Pensions and, if acceptable, the original DI will be forwarded from an IFGL Pensions email domain to RL360/FPIL for execution, with two IFGL Pensions authorised signatories in copy as authorisation. The new process will bring great efficiencies to the IFGL Pensions Dealing Team whilst continuing to have in place the relevant controls.

 

Pensions and Divorce

This is clearly not a happy subject, but one affecting increasing numbers of our members both in the UK and overseas. There are three main options available to separating couples and our handy guide will hopefully help in navigating these so your clients can choose the one which best suits their specific circumstances.

 

QROPS vs SIPPS

For some years, the QROPS has been the favoured retirement vehicle for use by expats who have settled overseas and have no immediate plans to return to the UK. One of the key appeals of the QROPS was the ability to move pension savings outside of the UK tax system and specifically the lifetime allowance, with its punitive charge on larger pension funds. The abolition of the lifetime allowance and the lifetime allowance charge has now moved the goalposts and in our opinion an International SIPP might be a better alternative for many investors.

Our QROPS v SIPPs guide compares the two pension products and explains why a QROPS might not automatically be the better option for the overseas resident.

 

Watch this space for budget updates 

The new Labour Government will deliver its first budget on 30 October 2024 and already speculation abounds on the changes that might take place. The King’s speech back in the summer indicated that pensions were to be reviewed and that the current tax relievable framework could be changed in some form or other.

Having already controversially removed the winter heating allowance for all but the poorest of pensioners, concern is mounting that the Chancellor might now look to make changes to some of the tax-free benefits which pensions are noted for. We will be watching with interest and will report back on the detail in a future edition of this newsletter.

 

Update for Hartley members

Advisers with clients within the RL360 White Label SIPP will be aware that Hartley issued members with long-awaited information letters and asset statements on 18 September. Once the Member receives the letter, the transfer to IFGL Pensions is expected to take place no sooner than 45 days later.

Until the point of transfer, the plans continue to be administered by Hartley, and any day to day administration queries should continue to be directed to them as normal.
 
UHY have not yet shared timelines with us for letters to be issued to members of Ardan and Trireme white label arrangements, though these are also expected within the coming weeks. It is important to note that these timelines are outside our control, and that we will provide further update on these groups once we have more information.

To see the recent update summarising some of the key areas for clients to address, please click here.

 

IMPORTANT NOTE IFGL Pensions cannot accept any responsibility for any action taken or refrained from being taken as a result of this information.