# Flat fee QROPS



## scotswahae (Nov 19, 2012)

Does anyone have any advice on what to watch for when looking at "flat fee" QROPS.
It seems that you have annual admin fees and then fund management fees as well as other spread issues


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## Cradle Matt (Jan 10, 2012)

99 times out of 100, the most solid and cost effective way to set up a QROPS, is to have a flat QROPS product charge and a Fund Management Charge. 

The annual admin fees and spread charges normally come when the QROPS purchases an Insurance Bond. The Bond is nearly always not neccessary, and only there as a commission paying vehicle, and as a way to purchase unregulated and high risk (although sold as low risk) funds that pay a futher commission.


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## scotswahae (Nov 19, 2012)

Thanks for the reply which is helpful.
I am still struggling to find any reputable flat fee structures that I am confident will be 100% safe. Iam quite happy to have my fund all invested in a cash deposit type fund which although this is low interest at present is also without risk.
I have been put off with all the regulations that are in place and the number of firms that operate in this sector. I have the feeling that the sharks are circling me!


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## Cradle Matt (Jan 10, 2012)

The shark comment is very relevant. In the QROPS market, the actual lack of regulation means that virtually anyone can advise in this area. It is often driven by sales commissions rather than advice, with a product or "a product within a product" being sold. 

Little things like client objectives and suitability rarely come into it. There may be a solution out there for you that is suitable, or at this stage your pension may be better where it is. If you have not already done so, I would speak to a properly regulated specialist initially on an informal basis. It all comes down to what you have, what you want to achieve, and your attitude to risk / loss.


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## scotswahae (Nov 19, 2012)

Cradle Matt said:


> The shark comment is very relevant. In the QROPS market, the actual lack of regulation means that virtually anyone can advise in this area. It is often driven by sales commissions rather than advice, with a product or "a product within a product" being sold.
> 
> Little things like client objectives and suitability rarely come into it. There may be a solution out there for you that is suitable, or at this stage your pension may be better where it is. If you have not already done so, I would speak to a properly regulated specialist initially on an informal basis. It all comes down to what you have, what you want to achieve, and your attitude to risk / loss.


Thanks for the reply. The problem is finding a specialist. I have had several quotes which all look plausible but I am still very nervous as this decision significantly impacts my future life style and there may be no going back if I get it wrong.
Do you know any regulated specialists?


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