Poor handling of QROPS redemption request

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viking59's review of Forth Capital - www.forthcapital.com

“Poor handling of QROPS redemption request”

★☆☆☆☆

written by viking59 on 20/09/2015

I am living outside the UK and transferred 1 pension fund that I had set up years ago while living in the UK into a QROPS with Forth Capital.
Following the changes to UK legislation last year (the custodian of the QROPS adapted the new rules as of 1 June 2015) I wanted to take advantage of the rule change to redeem my fund full and use the funds to purchase a "place in the sun". I submitted the redemption request in June 2015 and expected that the fund investment would be closed out and turned into cash at the fund NAVS at the time of the receipt of the redemption request. I have now found out that as of 18 September (close to 3 month after I transmitted the redemption request) I am still invested in the funds. So my fund has taken the full hit of the market moves following the bad economic news coming out of China mid August and also the US rate decision by the FED on 17 September. Due to this I look at a fund value that has dropped by about EUR 25,000 from EUR 100,000 to EUR 75,000. So it looks as if Forth first want to complete the paperwork following a redemption request and first when that is completed first then the fund investments gets terminated. So if that process takes 3 months or more you are not protected against any market movements so you can end up loosing 25% or more in no time.

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