Providers of recognised overseas pension schemes (Rops) have voiced concerns over the UK’s plan to scrap the advice safeguard for expats, with some arguing that the move may create a “consumer protection gap”.
All French and Italian schemes have been removed from the HM Revenue & Customs (HMRC) list of recognised overseas pension schemes (Rops) said to meet the conditions for accepting UK retirement pots.
Jersey-headquartered JTC has launched a recognised overseas pension scheme (Rops) aimed at supporting UK expatriates globally through its operation in Malta.
Overseas pensions offered from Gibraltar are most at risk of losing their ‘recognised’ status when the UK brings in a new rule requiring such products to be regulated in the country where they are established.
The UK’s plans to change the way overseas pension schemes are taxed and regulated have been welcomed by some providers, who say the changes will level the playing field between Rops and UK pensions and increase consumer protection.
The UK is to require overseas pensions to be regulated in the country where they are established in order to be ‘recognised’ by HM Revenue & Customs (HMRC), as it pushes ahead with plans to scrap the 70% ‘income for life’ rule.
The UK’s plan to abolish the 70% ‘income for life’ rule on recognised overseas pension schemes (Rops) will “decimate” the market for such products, according to the head of expat-focused IFA firm, Montfort International.
Malta will be the “main winner” of HM Revenue & Customs’ plan to change the ‘eligibility criteria’ for foreign pensions to qualify as recognised overseas pensions schemes (Rops), according to the director of European IFA firm Blevins Franks.
The UK government’s plans to change the way overseas pension schemes are approved and taxed have been met with a mixed response from the financial services industry, with some advisers welcoming the move while others believe it will make foreign pensions increasingly complex and unattractive.
The UK government has announced a major overhaul to the way recognised overseas pension schemes (Rops) are taxed, bringing the products in line with UK pensions.
Chancellor Philip Hammond took to the despatch box for his first and final Autumn Statement on Wednesday. To the relief on many he resisted further tinkering of the pension system.
The director of the newly-rebranded bdhSterling has revealed that the advisory firm has seen a dramatic increase in the number of clients looking transfer their pension into a recognised overseas pension schemes (Rops).
