Resources & Insights

How to Choose a Financial Adviser as an Expat

By QROP Direct Editorial Team · Reviewed by an independent regulated pension specialist · Reviewed 2026-06-10

How to Choose a Financial Adviser as an Expat

The financial adviser you choose for UK expat pension planning will make some of the most important decisions about your retirement alongside you. The right adviser saves you money, avoids costly mistakes, and provides clarity in a genuinely complex area. The wrong adviser can cost you tens of thousands of pounds through unsuitable recommendations, undisclosed conflicts of interest, or simply inadequate knowledge of cross-border pension rules.

This guide explains what to look for, what to avoid, how fee structures work, and the questions to ask before engaging an adviser.

This guide is for information purposes only and does not constitute financial or legal advice.

Key Takeaways

• FCA authorisation is non-negotiable for advice on UK pension products
• Independent vs restricted: An IFA advises on the whole market; a restricted adviser is limited to certain products
• Pension transfer specialist qualification (AF7) is required for DB transfer advice — not all FCA advisers have this
• Fee transparency: A good adviser discloses all fees clearly upfront; commission-earning introduces conflicts
• International experience: Cross-border expertise in your specific country of residence is essential, not optional
• Red flags: Unsolicited approaches, urgency pressure, recommendations without full fact-finds

Step 1: Confirm FCA Authorisation

The first check — non-negotiable. Any adviser providing advice on UK pension products (SIPPs, workplace pensions, QROPS) must be FCA-authorised.

How to check: Go to fca.org.uk/register. Search for the individual adviser by name, or the firm. Confirm: - The firm is authorised (not just registered) - The specific activities are listed — "advising on pension schemes", "pension transfers and opt-outs" if DB advice is needed - The firm's status is "Authorised" (not "Appointed Representative" of a firm you don't recognise)

Appointed Representatives (ARs): Many advisers work as Appointed Representatives of an authorised firm. This is legitimate but means the authorised principal firm carries the regulatory liability. Confirm the principal firm's authorisation and check the AR is listed under them.

Step 2: Confirm Qualifications

For General Pension Advice

A minimum qualification for pension advice in the UK is the Diploma in Financial Planning (DipPFS) from the Personal Finance Society, or an equivalent level 4 qualification. Most reputable advisers hold at least this.

Higher qualifications — Chartered Financial Planner status, Fellowship of the Personal Finance Society — indicate additional expertise. Look for advisers with advanced pension qualifications.

For DB Transfer Advice

If you need advice on transferring a defined benefit pension, the adviser must additionally hold the pension transfer specialist (PTS) qualification — typically the Chartered Insurance Institute's AF7 unit. This is a specialist additional qualification, not held by all financial advisers.

Ask specifically: "Do you hold the AF7 pension transfer specialist qualification?" If they do not, they cannot legally give you DB transfer advice.

Step 3: Confirm Independence

Under FCA rules, advisers must clearly state whether they are independent or restricted. Ask directly: "Are you an independent or restricted financial adviser?"

An independent financial adviser (IFA): - Can advise on products from the whole of the market - Must consider all relevant options when making a recommendation - Cannot have financial incentives that favour certain products over others

A restricted adviser: - Is limited to a specific range of products or providers - Must tell you clearly what their restriction is - May still give good advice within their restriction, but you are not receiving whole-of-market advice

For expat pension planning — where the "right" answer might be a UK SIPP, an international SIPP, a QROPS, or leaving a pension deferred — whole-of-market independent advice is important.

Step 4: Understand the Fee Structure

Since the Retail Distribution Review (2013), FCA-authorised advisers cannot receive commission from product providers for investment advice. All fees must be disclosed and paid by the client. Ask for a written fee schedule before engaging.

Fee Structures You Will Encounter

Fixed fee: A set charge for a specific piece of work (e.g., £2,500 for a DB transfer advice engagement, £1,500 for an initial pension review and SIPP recommendation). This is the cleanest structure — the adviser's income is not affected by which product they recommend.

Percentage of transfer value: A percentage (typically 0.5%–2.0%) of the pension value being transferred. Be alert to this structure for DB transfers — it creates a financial incentive toward recommending transfer, since no transfer means no fee.

Ongoing advisory fee: An annual percentage of assets under advice (typically 0.5%–1.0%/year). Appropriate for an ongoing advisory relationship where the adviser reviews your pension and investment strategy annually. Question whether an ongoing relationship provides value for money for your situation.

"No transfer, no fee": Any structure where the adviser is only paid if a transfer proceeds. This creates a clear conflict of interest toward transfer recommendations. Avoid this structure for DB transfer advice.

Step 5: Confirm Cross-Border Experience

A UK-regulated IFA is excellent for UK domestic pension advice. But for an expat, the adviser also needs to understand:

• The tax treatment of UK pension income in your country of residence
• The DTA between the UK and your country and how it applies to different pension types
• Whether a QROPS is appropriate for your jurisdiction
• The OTC position for any QROPS transfer
• Local pension or retirement savings options that might complement your UK pension

Ask specifically: "How many clients do you have who are resident in [your country]?" and "Can you advise on the [country] tax treatment of UK pension income?" If the answers are vague, the adviser may not have the cross-border depth you need.

Red Flags to Watch For

Unsolicited approaches. A reputable adviser does not cold-call you about your pension. If you received an unsolicited approach — by phone, social media, email, or through a third party — treat it with extreme scepticism.

Urgency and pressure. "This opportunity is only available for the next 48 hours." "The CETV guarantee expires next week, you must decide now." Legitimate advice does not require artificial urgency. Urgency is a sales tactic.

Recommendations without a fact-find. A proper advice engagement starts with a thorough fact-find covering your full financial position, health, family situation, country of residence, and long-term plans. If an adviser moves quickly to a recommendation before understanding your circumstances, they are not following the FCA's requirements.

Overseas-only regulation. An adviser who says they are regulated only by an overseas body (not the FCA) cannot give regulated advice on UK pension products. Always confirm FCA authorisation.

High returns investment promises. If an adviser is recommending your pension be invested in something promising 8–15% annual returns, ask very detailed questions about the underlying investment. High promised returns are a common feature of pension fraud.

Finding Qualified Advisers

Personal Finance Society (thepfs.org): The PFS has an adviser search tool. Search for advisers with relevant qualifications and in your area or with expat specialist experience.

Chartered Insurance Institute (cii.co.uk): The CII offers an adviser search and lists qualifications held.

Unbiased and VouchedFor: Adviser search platforms that list FCA-authorised advisers with client reviews.

Expat financial networks: Some expat communities have established relationships with reputable cross-border advisers. Personal recommendations from trusted sources (not introduced by a financial product promoter) can be valuable.