PEPs, like any investment, require regular monitoring to ensure that the performance is maintained.  For a number of people, however, the original choice of fund manager is no longer appropriate due to changes in their personal circumstances or changes to the fund performance of the Fund Manager.  The option to change fund manager has always existed, although generally it has not been well publicised.   

How is it done?

All PEPs were carried out on a tax year to tax year basis and consequently exist as distinct investments.  You therefore normally have the option to transfer each individual year s investment to a new provider.  It should be noted, however, that certain Fund Managers use only one account number for a client and are therefore only able to transfer the whole fund.  You should, therefore, check with your Fund Manager as to how they will treat your transfer. The procedures involved are, thankfully, simple.

	You choose which Fund Manager you wish to transfer to. You choose which year(s) of PEP you wish to transfer. You complete the new Fund Manager PEP Transfer Application indicating your fund choice.

It should be noted that the timing of how the transferred funds are invested is completely dependant on the existing Fund Manager.  Another important factor to remember is the need to maintain the rule of not having more than 25% of the new investment in non-qualifying funds i.e. non-EU based investments.

Taxation
All gains under a PEP are free of all Capital Gains Tax (CGT). There is no income tax to pay on investment returns. The underlying investments, however, have a more favourable tax treatment than the non-PEP equivalents being subject to dividend taxation at 10%.