Consumer Duty and UK Pensions for British Expats

Quick Summary

An ever-increasing number of British expats are facing difficulty managing their UK pensions.
Consumer Duty requires FCA-regulated firms to work towards good outcomes for retail customers.
It can currently apply to certain cross-border activities where the relevant FCA conduct rules also apply.
The Financial Conduct Authority has proposed removing most business involving non-UK residents from the scope of Consumer Duty.
However, it proposes retaining Consumer Duty protections for regulated and related activities involving UK pensions held by people living overseas.
The proposals are not yet final. The FCA expects to publish its conclusions and make any new rules during the first quarter of 2027.

Recently, I have spoken with several British expats who have experienced the same problem.

They have a UK pension.

They have worked with a UK financial adviser for many years.

But once the adviser discovers that they now live overseas, the relationship suddenly changes.

The adviser may no longer be able to recommend investment changes.

The pension provider may restrict how benefits can be taken.

Or the client may simply be told:

“We cannot advise you because you no longer live in the UK.”

This has become increasingly common, particularly since Brexit.

But it raises an important question.

Do FCA-regulated UK pension firms still owe Consumer Duty protections to British expats?

The short answer is that Consumer Duty can currently apply to certain cross-border pension business. The FCA is also proposing that important protections should continue to apply to UK pension activities involving clients who live overseas.

However, the position is more nuanced than a simple yes or no.

Have you found out that your UK based financial adviser can no longer look after you?

Let’s discuss your specific needs and how I can help you.

Speak with a cross-border pension expert

What Is Consumer Duty?

Consumer Duty was introduced by the Financial Conduct Authority in 2023.

In plain English, it requires FCA-regulated firms to work towards good outcomes for retail customers.

It covers four main areas:

Products and services designed for the customers they are intended to serve.
A reasonable relationship between the price charged and the benefits provided.
Communications that customers can understand.
Appropriate support throughout the customer relationship.

The important word is outcomes.

It is not enough for a UK pension provider or financial adviser to have the correct processes on paper.

The firm should also consider what actually happens to the customer.

Does Consumer Duty Apply to British Expats?

Consumer Duty can currently apply to cross-border business where the relevant FCA conduct rules also apply.

This does not mean every UK pension or every interaction with a pension provider is automatically covered.

Consumer Duty applies to FCA-regulated firms and activities within its scope. Different rules may apply to occupational pension schemes regulated by The Pensions Regulator.

The client’s country of residence also matters.

A UK adviser may need the necessary regulatory permissions to provide advice in the country where the client lives.

What Is the FCA Proposing to Change?

The FCA has consulted on proposals to remove most business involving customers who normally live outside the UK from the scope of Consumer Duty.

However, there is an important proposed exception.

The FCA proposes that Consumer Duty should continue to apply where UK firms undertake regulated or related activities involving UK pensions held by people living overseas.

This would include activities such as:

Advising on UK pensions.
Arranging pension transactions.
Providing pension-transfer advice.
Certain activities involving Qualifying Recognised Overseas Pension Schemes, or QROPS.

The consultation closed on 18 September 2026.

These are not yet final rules. The FCA expects to publish a policy statement and make any new rules during the first quarter of 2027.

You can read the FCA’s Consumer Duty consultation for further details.

Real People, Real Results

“There is no shortage of people offering financial advice to Brits living overseas and it is, unfortunately, extremely hard to sort the wheat from the chaff. I did a fair bit of due-diligence before finally deciding to put my trust in Ross and I have not been disappointed.

He is a true professional who has provided valuable advice and has delivered on everything he said he would and I have no hesitation in recommending him to others.”

— Ian Scattergood

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Why Does Consumer Duty Matter to British Expats?

A British expat may live in France, Spain, Poland or elsewhere.

But they may still have a UK pension governed by UK pension rules and administered by an FCA-regulated firm.

The FCA appears to recognise that this continuing UK connection is important.

Consumer Duty does not mean that every UK pension provider or adviser must offer every service in every country.

There may be genuine legal or regulatory reasons why an adviser cannot provide investment or pension advice to someone living overseas.

A pension provider may also make a commercial decision not to offer certain options to non-UK residents.

Consumer Duty does not override those restrictions or the financial-services regulations in the client’s country of residence.

However, where the firm and its activities fall within the Duty, living overseas should not remove the requirement to communicate clearly, provide appropriate support and work towards good customer outcomes.

What Should You Ask Your UK Pension Provider or Adviser If You Are Living Overseas?

If your UK pension provider or adviser has restricted its service because you live overseas, ask:

Exactly which services are no longer available?
Is the restriction based on legislation, regulation or company policy?
Can you continue to manage the pension investments?
Can you take flexible pension withdrawals while living abroad?
What alternatives are available?
Will the provider work with an adviser regulated to advise you in your country of residence?
How will the provider communicate with and support you as a non-UK resident?

Moving abroad can change how your UK pension is taxed and how financial advice can be provided.

It should not mean that good customer outcomes stop mattering.

Frequently Asked Questions

Does Consumer Duty apply to UK pensions held by British expats?

Consumer Duty can currently apply where an FCA-regulated firm conducts cross-border pension business and the relevant FCA conduct rules apply. The FCA has proposed retaining the Duty for regulated and related activities involving UK pensions held by customers who normally live outside the UK. The precise position depends on the firm, pension and activity involved.

Can a UK pension provider refuse to serve a non-UK resident?

A UK pension provider can restrict the services it offers to non-UK residents. This may result from local regulation, the provider’s regulatory permissions, operational limitations or internal commercial policy. However, the provider should explain the restriction clearly and continue to meet any regulatory obligations that remain applicable.

Can a UK financial adviser advise a British expat on their pension?

Possibly, but being authorised in the UK may not be sufficient. The adviser must consider the regulatory requirements in the country where the client lives. Following Brexit, many UK advisers do not have the permissions needed to provide ongoing investment advice to clients living in the European Union.

What can I do if my UK adviser can no longer advise me because I live abroad?

Ask the adviser to explain exactly which services must stop and why. You can then look for an adviser who understands UK pensions and is appropriately regulated to provide advice in your country of residence. Before transferring a pension, check the charges, investment options, withdrawal flexibility, tax implications and available consumer protections.

The Bottom Line

Living overseas does not automatically mean that Consumer Duty stops applying to your UK pension.

However, it also does not require every UK adviser or pension provider to offer every service in every country.

The key is to establish whether a restriction is genuinely required by regulation or is simply the firm’s own policy.

If your existing adviser or pension provider can no longer help, look for someone who understands UK pensions, cross-border taxation and the nuances of retiring overseas.

Talk to an Expat Pension Expert

If your UK financial adviser or pension provider has restricted the services available to you because you now live overseas, the first question to establish is why. A restriction may arise because of genuine regulatory requirements, but it can also reflect the individual firm’s own cross-border policy or commercial decision.

I’m Ross Naylor, a UK-qualified Chartered Financial Planner with nearly 30 years’ experience helping British expats understand the interaction between UK pensions, cross-border financial advice, overseas residency and local tax rules. I regularly speak with people who have discovered that an adviser they have worked with for years can no longer provide the same service once they move abroad.

The important distinction is that living overseas does not automatically mean that your UK pension stops being subject to UK regulation or consumer protections. Consumer Duty can currently apply to certain cross-border pension activities, while the FCA has also proposed retaining important protections for regulated activities involving UK pensions held by people living overseas.

If your adviser can no longer manage your pension, your provider has restricted withdrawals or investment options, or you have simply been told that you cannot receive advice because you are no longer UK resident, I can help you understand what the restriction actually means, what alternatives may be available and how your UK pension fits into your wider cross-border financial position.