The UK government’s decision to make pension transfers into recognised overseas schemes a statutory right has been welcomed by the industry, but experts caution that advisers will need real expertise to ensure clients don’t fall victim to scams.
The number of Qrops transfers in the last financial year dropped to the lowest level since 2010/11 and is expected to fall further on the back of the UK Government’s 25% charge, as the amount of money accessed via the pensions freedoms hits a record high.
The UK government’s plans to potentially scrap the current ‘advice safeguard’ on some overseas pension transfers has met with a mixed response from the financial services industry, with some experts welcoming the move while others believe it will put consumers at risk of being targeted by fraudsters.
QROPS domiciled in Malta will benefit from the full flexibility which is to be afforded to UK pensions, after a change to local pension legislation.
Momentum Pensions the multi-jurisdictional pensions provider with offices in the Isle of Man and Malta is to open an office in Gibraltar and launch an international pensions business there.
QROPS industry officials expressed relief over today's anticipated announcement by HM Revenue & Customs concerning how they are to handle transfers of pensions into qualifying recognised overseas pension schemes.
Malta has enjoyed a surge in popularity among financial services companies, in the wake of the financial crisis. Hedge funds, pension fund administrators and retiring Britons are relocating there, drawn by its agreeable climate and lifestyle, affordable costs, numerous DTAs, and regulatory infrastructure. Helen Burggraf reports.
Momentum Pensions, the pensions provider which has operations in both the Isle of Man and Malta, has launched into the open market an IoM QROPS that it says will compliment and replicate its existing Malta-based qualifying recognised overseas pension scheme.
The global QROPS industry breathed a collective sigh of relief this morning as HM Treasury released a Draft Finance Bill that contained only a relatively minor increase in reporting requirements for administrators of overseas pension schemes.
John Batty has been named head of pensions at Isle of Man-based BW Oakfield Group.
