We are finding that many of our clients have savings,investments and pension policies which were set up in the UK some time ago, where the relationship or contact with the adviser that arranged them has been lost. 

Once resident in Spain, your original UK adviser is probably unable to advise you further, unless you are prepared to return to the UK to meet with them. Even then, they may be reluctant as they may not be in a position to provide advice which they are certain is compliant with Spanish requirements and consequently, would be a breech of regulatory rules.

If you fall in to this category, then you are indeed now an orphan client of the product provider concerned.

What does this mean?

As you probably know, the adviser is there to work on your behalf and to liaise as appropriate with product providers. As an orphan with no adviser, you can obtain information directly from the product provider but in all probability, they will not be authorized to provide you with any advice. This is not their role.

Ironically, many investment contracts will have a trail of ongoing commission built into the plan, which continues to be payable to the original adviser.

The result is that you are paying a commission out of charges on your plans to an adviser who you may no longer have contact with and more importantly, who is doing nothing for you.

Can the charges be stopped?

In most cases the answer is no. Once the contract has been set up, the terms will continue throughout.

Is there a solution?

As you are paying the charges anyway, it is important that you are getting something in return and have the ability to obtain advice when you need to. (The very fact that you are in this situation suggests that a review may well be long overdue.) The solution is to appoint a new adviser as the “servicing agent”. This should enable the ongoing commission to be paid to them, which can then be dedicated to providing advice to you.

You will need to make sure that your new adviser is not only authorized to provide you with advice in Spain, but they also have authority to hold an agency with your product provider. The transfer of agency itself will cost you nothing and will not affect your policy in any way.

ASEC recommendation.

We are well aware that the quality of financial advisers varies greatly in Spain and that the regulatory controls are not applied as stringently as they are in the UK for example.

We are however able to recommend one of our professional associates, Richard Alexander, who we know very well and have worked with for a number of years.

Having 36 years of industry experience behind him, earlier this year, he set up a new business to provide financial planning advice to existing expats in Spain and to help those with ambition to make the move. He spreads his time equally between the UK and Spain. His business is authorized and regulated by the Financial Services Authority and is licensed to work in all EU countries including Spain.

As a service to ASEC clients, Richard is offering a free review of existing policies (which can also be extended into a full financial planning review if required), to obtain the current value of arrangements and comment on their suitability. He will be able to make specific recommendations and to identify any options that you may be able to exercise.

If you would like to take up this offer, please let your usual ASEC contact know or alternatively you can make direct contact with Richard and be sure to tell him that you are an ASEC client.

His contact details are:

e.  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

t Spain . 0034 671 742 667

t. UK .  0044 1580 212617 

w.www.ra-fp.com

www.asec.es