Brite Advisors Pension

What “frozen” really means in a post-Brite context

A frozen pension does not mean the assets have disappeared, nor does it mean they are completely inaccessible. Instead, freezing typically reflects a loss of discretionary control while legal, regulatory, or court-led processes determine next steps.

In the Brite Advisors context, freezing usually means:

• Assets cannot be freely traded or reallocated
• Transfers require trustee approval
• Adviser discretion is heavily limited or removed
• Certain instructions are automatically rejected
• Timelines are dictated by receivership processes

This creates a controlled environment where progress is possible, but only if actions align with the governing rules.

Why frozen assets introduce a new decision hierarchy

Before Brite, the decision hierarchy was simple: client → adviser → platform. After Brite, it has fundamentally changed.

The hierarchy now often looks like:

1. Court or receivership framework
2. Trustee permissions and policies
3. Administrator execution capability
4. Adviser sequencing and advice
5. Client decisions

Ignoring this hierarchy leads to repeated rejection, stalled cases, and wasted time. Understanding it allows advisers to work with the system rather than against it.

Transfers during a frozen period: possible, limited, or blocked

One of the most common questions we hear is whether a frozen pension can be transferred. The honest answer is: sometimes, but rarely in the way people expect.

Factors that affect transfer feasibility include:

• Whether the trustee permits partial transfers
• Whether the receiving scheme can accept frozen assets
• Whether the receivership stage allows movement
• Whether regulatory permissions are satisfied
• Whether tax implications have been assessed

In many cases, partial transfers are permitted while full transfers are blocked. This creates planning opportunities, but also introduces complexity and risk.

Why partial transfers require extreme care

Partial transfers are often seen as a way to “get something moving.” However, partial action can be more dangerous than no action at all if it is not planned correctly.

Risks include:

• Triggering tax events mid-year
• Breaking continuity of pension structures
• Creating mismatched asset ownership
• Locking remaining assets into less flexible positions
• Losing future restructuring options

A partial transfer should never be treated as a tactical win. It must fit into a wider strategy that considers what happens to the remaining assets later.

Timing matters more than intent

Many tax issues arising from frozen pensions are not caused by poor advice, but by poor timing.

Examples include:

• Becoming tax resident partway through a transfer
• Distributions landing in the wrong tax year
• Transfers executed during transitional residency periods
• Pension crystallisation without tax planning

In a frozen environment, timing decisions are often outside the client’s direct control. However, advisers must anticipate how timing interacts with tax rules across jurisdictions.

{{INSET-CTA-1}}

How frozen pensions quietly create tax exposure

Frozen assets do not pause tax law. Income, gains, and distributions may still be assessed depending on jurisdiction and structure.

Common tax risks include:

• Unexpected income tax on distributions
• Capital gains triggered by forced asset sales
• Reporting obligations across multiple countries
• Inheritance tax exposure based on residency history

These risks are magnified for non-UK residents, US residents, and individuals with cross-border lives.

Why “waiting it out” is not always neutral

Doing nothing is sometimes the right choice, but not always. Waiting without understanding the implications can be just as harmful as acting too quickly.

Risks of passive waiting include:

• Missing restructuring windows
• Losing trustee flexibility
• Allowing tax residency to change unnoticed
• Letting documentation lapse or expire

The goal is not activity for its own sake, but informed patience with a clear plan.

The adviser’s real role during a frozen period

In frozen scenarios, the adviser’s role shifts from execution to orchestration.

They must:

• Interpret trustee communications accurately
• Align actions with receivership phases
• Coordinate tax advice where needed
• Prepare future steps before they become available
• Communicate realistically and conservatively

This requires discipline, experience, and an understanding of failure environments, not just success scenarios.

How Skybound approaches frozen pension strategy

At Skybound, we treat frozen pensions as constrained systems rather than broken ones. Our focus is on understanding the constraints first, then designing actions that respect them.

This approach prioritises:

• Preserving optionality
• Avoiding irreversible tax events
• Sequencing transfers correctly
• Reducing friction with trustees
• Protecting long-term outcomes

Frozen assets require patience, clarity, and technical rigour, not urgency or optimism.