International and UK based advisers should collaborate when helping expats with their pensions, according to David Johnstone, director at MES Pensions.
Johnstone “strongly recommended” for advisers to adopt the “two-adviser model” when helping clients who have relocated abroad with their pensions.
He urged UK-based advisers to work collaboratively with international advisers who are authorised in the client’s country of residence.
“This two-adviser model helps ensure compliance with local regulations, provides holistic advice covering both UK pension rules and local tax treatment, and mitigates the risks of unauthorised cross-border advice,” Johnstone added.
By working with local advisers, Johnstone said UK advisers can assist expats in accessing UK pensions and consolidating them into a UK-based Sipp that meets the unique needs of expats.
He believed collaboration was a “safer and more compliant approach”.
Pension transfer delays
When an expat wants to consolidate existing pensions into a UK based Sipp, transfer delays can occur due to regulatory flags in the advice process, poor provider practices and manual processing.
Johnstone highlighted that getting the advice right was key and shared guidelines for UK advisers to follow when assisting expats in pension transfers.
He said transfers between schemes using digital platforms such as the Origo Transfer Service were “significantly faster” than paper-based schemes.
Many delays stem from amber flags so Johnstone said it was important that advisers follow local and UK regulations to avoid unnecessary delays or poor outcomes for their clients.
Additionally, trustees needed to follow the FCA and Pension Scams Industry Group due diligence process to determine if a transfer is legitimate.
Johnstone reiterated the importance of the two-adviser model so that the UK-regulated adviser could provide advice on UK pension consolidation and ensure compliance with FCA rules.
While the international adviser could address local tax, regulatory, and investment considerations.
“This collaborative approach ensures compliance in both jurisdictions, provides holistic and transparent guidance, and reduces risks of amber flags, regulatory breaches, or mis-selling claims,” he added.
Link to article on FT Adviser: https://www.ftadviser.com/international-advice/2025/10/13/two-adviser-model-strongly-recommended-for-expats/
