The Sovereign Group are a well established, and well-respected, group of companies that specialise in setting up and managing company formations, trusts, pensions (QROPS), insurance and other structures. With the first Sovereign office opened in Gibraltar in 1987, Sovereign has continued to grow and is now one of the largest independent trust companies in the world.

Sovereign’s Centaurus Retirement Benefit Scheme (Sovereign QROPS) is a popular option amongst those looking to establish a QROPS, however, what many potential clients are not aware of is that the underlying investment structure, contained within the QROPS, could be set up in a way that will not only be much more cost effective but will almost always lead to a much better investment outcome. Why is this? Well, this is principally down to the fact that the vast majority of QROPS are set up on a commission basis. What this means, in essence, is that your adviser will get paid up to ten years worth of their income, on day one, with very little thereafter. Further, when you come to make withdrawals from your QROPS, clients will often find that they are continuing to get charged fees on the amount that they initially contributed to their QROPS, not what the QROPS is now worth. Therefore, their fees increase as a percentage of the current value of their QROPS.

Compare this with a fee-based adviser where they only get paid for as long as you continue to be happy with what it is that they’re doing for you, based on the current value of your QROPS. Which of these two formats do you think will tend to produce a better outcome for clients? Yes, always the fee-based option. In the UK commission was outlawed in 2013, and the market has never looked back. Unfortunately, the international marketplace hasn’t yet followed suit. It will do at some point, however, for now most international advisers continue to operate on a commission basis.

You can read an article that one of AES International’s Chartered Financial Planners put together for Expatica (Europe’s biggest expat portal) on this very subject here:


We’d be delighted to speak with you to understand your particular pension transfer needs, and to explain how we could arrange your QROPS on a 100% fee only basis. This will mean no exit penalties on the underlying investment structure or funds, resulting in complete flexibility with how your QROPS is managed, on an ongoing basis. Our initial discussions and meetings are without any charge. Use the contact form on the right – we’ll endeavour to get back to you within 30 minutes. 

If you already have a QROPS with Sovereign, and have lost contact with your original adviser, contact us today to understand how we may be able to help with managing your existing Sovereign QROPS.


AES International recent awards:

Best Practice Adviser Awards – Global

2016 – Global Best Practice Adviser Firm

Best Practice Adviser Awards – Middle East

2016 – Best Adviser Firm
2016 – Excellence in Professional Development
2016 – Excellence in Client Service

Best Practice Adviser Awards – Europe

2016 – Excellence in Professional Development
2016 – Excellence in Social Media
2016 – Excellence in Business Transformation


About AES Adviser

AES Adviser advises expatriate clients worldwide on all financial planning matters including wealth management, estate planning, offshore bank accounts, savings and investment, insurance, multi-generational wealth transfer and generating income, from wealth accumulated, to support retirement.