HELPLINE: 
What every expat should know before moving from a SIPP to ISIPP and then to an assurance vie.
The opportunity. Transferring your UK pension into an International SIPP (ISIPP), then into a Luxembourg or Ireland-based assurance vie, can offer tax efficiency, investment flexibility and estate planning advantages for expats.
But it’s not without risk, overlooking key details can jeopardise long-term returns or restrict access to your money.
The risks. Five key ways to reduce risk are:
1. Custodian bank. Your capital is held by a custodian, not your adviser – and poor quality custodians risk institutional failure.
Solution: Use only A+ rated (by Moody’s, S&P or Fitch) custodians like BNP Paribas, BNY Mellon or Crédit Agricole Luxembourg, regulated in investor-protective jurisdictions.
2. Market volatility. Funds invested, such as in an assurance vie or ISIPP, are market exposed and downturns can reduce income.
Solution: Create a diversified, risk-profiled portfolio with regular reviews and watch out for the level of equity in the policy while sticking to a professionally-assessed risk level.
3. Investment selection. Poor selection or overexposure to a single asset class can lead to underperformance or losses.
Solution: Obtain bespoke guidance for your portfolio and avoid fund concentration.
4. Tax code delays. The NT (Non-Tax) code from HMRC can take 6-8 months and delays may trigger unexpected tax.
Solution: Work with an adviser who has interim ISIPP strategies or tax reclaim procedures.
5. Hidden or excessive fees. All investment products include fees and commissions that can erode your investment.
Solution: As well as avoiding concentration, select clean share classes, when available, and ensure you are aware of all fees, particularly hidden commissions.
Takeaway. A SIPP to ISIPP to assurance vie transfer can be highly effective, but only when managed carefully. Prioritise custodian quality, portfolio structure and fee clarity to protect your financial future in France.