QROPS – urgent news
Montfort International, an advisory firm which has specialised in UK Pension transfers to Australia and New Zealand, is urging “former members of UK pensions who transferred to a Qualifying Recognised Overseas Pension Scheme (QROPS) at any time since 2006 to urgently review the pension advice they were delivered” that resulted in their ultimate decision to move their pension. QROPS are now called ROPS (as they are no longer “qualifying, according to HM Revenue & Customs).
Montfort managing director Geraint Davies is urging Clients to revisit their contracts because of the emerging evidence that many of those making these transfers over the past 11 years had been given poor advice. He noted that one of the advantages of a raft of new rules being introduced by HMRC which govern the way Pensions may be transferred abroad in the future is that there will now be “significant tax punishment” if those advising on the transfers get their advice wrong. The changes were unveiled on the 8th of March by UK Chancellor Philip Hammond, and took effect on the 9th March.
HMRC, and the UK’s regulator the Financial Conduct Authority (FCA), has also begun taking an increased interest in UK- authorised firms with overseas interests, in response to the emerging problems with historic bad advice.
When HMRC suspends publication of its online list of schemes that attest to being registered overseas pension schemes on the 2nd of June, of its updated list, more significant reductions are expected again in the number of schemes, with losses most likely in Australia, Guernsey, Jersey and the Isle of Man.
As reported, the online ROPS list, which is a closely-monitored resource for those in the Pension transfer industry, has had a history of being updated with large numbers of schemes deleted – in a few cases, every scheme, or nearly every one, in a single jurisdiction. In May, the last US scheme disappeared, weeks after the last Canadian scheme vanished. Also removed this year were the last schemes in Italy and France.
In April 2015, HMRC stunned the UK and international Pensions transfer industry when it ruled that that all but one Australian scheme failed to meet the new ‘Pension Age’ standard, and removed some 1,653 Australian ROP schemes from its list. There are now 355 schemes. Three years earlier, it de-listed around 300 Guernsey schemes, leaving just three.
To obtain the current ROPS list (as of 9th May 2017), please contact me.
Do YOU have one? Do you know someone who does? Please contact me for help………