EU Resident with UK Pensions and Investments Update

Published / Last Updated on 14/07/2021

Brexit:  What you should do if you are resident in the EU with UK pensions and investments?

A Memorandum of Understanding (MOU) as part of the Brexit Trade agreement with financial services included should have been agreed between the UK and EU by the end of March 2021 with the news this was then extended to June and that deadline has again missed.  Negotiations are ongoing and we hope one day soon an agreement will be reached.

In the interim, many country’s regulators are maintaining a status quo position that investors with UK pensions or investments can still switch funds or indeed to transfer to other options within a pension (if they are already allowed).  Other countries, e.g. France initially took a stricter position of clients not being able to do anything but this appears to have subsided and changes can be mad provided they are within the existing contract terms.

Latest position:

We have spoken to a number of investment houses and there appears to be a general consensus now (ahead of any agreement):

EU Nationals Resident Overseas with UK pensions and investments:

Generally, for pensions, you can switch pensions funds in the UK provided there is no ‘NEW’ monies invested, provided the pension company will allow it.  For investments, many UK investment providers and overseas regulators expect your existing UK investments to only invest in non-UK registered and domiciled funds e.g. funds registered in Dublin (part of EU).

British Expats Resident Overseas with UK pensions and investments:

Many providers are able to continue as normal with existing pensions, investments and fund switches.  You can switch pensions funds in the UK provided there is no ‘NEW’ monies invested, provided the pension company will allow it.  As a British National, many UK investment providers and overseas regulators will allow your existing UK investments to invest in UK registered and domiciled funds as well as non-resident/non-UK domiciled funds registered in EU.

EU Nationals resident in UK:

The full range of UK pensions and investments are permissible.

Reverse Solicitation:

UK financial advisers and UK pension and investment companies are NOT allowed to market or solicit for UK financial services to British expat and non-UK nationals.  If you approach a UK financial adviser or you approach a UK pension or investment company direct they will usually be able to help but not all.  For example we have ‘worldwide expatriate professional indemnity’ insurance cover (not all advisers do) but each firm will have different guidelines on what they can and cannot do.

July 2021


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