Perpetual Trust's QROP scheme back in business while its corporate trustee business has been sold to a group of its management team.
Monday, October 1st 2012, 7:41AM
Perpetual’s Qualifying Recognised Overseas Pension Scheme (QROPS) fund has recently been re-approved by UK authorities.
Earlier this year new regulations for QROPS funds came into effect requiring existing New Zealand QROPS providers, excluding KiwiSaver providers, to either exit the industry or restructure their funds to comply with the revised regulations.
The re-approval means that the Perpetual Portfolio Superannuation Fund (PPSF) and its Personal Plan service can afford each member the opportunity to invest in a personalised suite of investments tailored to their individual risk profile.
“We believe this offering of a Personal Plan, customisable to the individual member, is unique to the New Zealand QROPS market,” Perpetual chief executive Patrick Middleton says. “Typically when investing in a QROPS or superannuation plan, members are limited in investment fund options. With the Personal Plan, members have the ability to choose underlying funds which best match their personal needs, circumstances and risk considerations”.
“Perpetual has been providing pension options for ex-pats and people moving to New Zealand for over 30 years. We have a well-established presence in this market and some very strong adviser relationships so we want to continue to support this market.” says Middleton.
To this end, Perpetual has amended the PPSF trust deed to cater for the new regulations and has enhanced its processes to ensure it continues to meets HMRC’s administrative and income provision requirements. In accordance with the regulations, PPSF now has the ability to meet the “Income for Life” provisions to which all new members become subject once they reach the minimum pension age of 55.
“Income for Life” is the requirement that a minimum 70% of the pension balance transferred be set aside for providing the member with an income for life. This income stream will be reviewed annually to meet the needs of the member and to ensure they enjoy the best level of income for the longest possible period.
“There’s a lot of confusion around the new regulations, as well as when and to whom they apply. As a result, investors may be exposed to negative tax consequences. Proper administration and knowledge are as important to us as the structure of PPSF, which is why Perpetual has a specialist team dedicated to understanding the new regulations and administering by them. Along with their personal accountant, we can help guide investors through the process”.
In gaining registration from the HMRC, Perpetual Portfolio Superannuation Fund has reopened to new members who wish to transfer their UK pension funds to New Zealand. Existing scheme members have had their investments in the fund prior to 6 April and are largely grandfathered from the new regulations.
Perpetual now a Foundation
Perpetual Trust, which is a subsidiary of Pyne Gould Corporation, has been under investigation by the Financial Markets Authority over a $28 million related party loan.
The loan was from a cash management fund to the Torchlight Fund, which is 76% owned by PGC managing director George Kerr. The loan has been repaid but the investigation continues.
Its corporate trustee business is being spun off into a standalone entity called Foundation Corporate Trust. It is owned by Perpetual's staff and chaired by Perpetual's corporate trust committee chairman Sam Maling.
Foundation is wholly owned by Perpetual Trust's former risk management executive Kim von Lanthen, and is headed by former Perpetual head of corporate trust Matthew Lancaster.
Perpetual failed to get a licence from the FMA when the first list of licencees was announced, but Foundation has been granted a full licence to practice as a corporate trustee. All Perpetual's clients would be transferred, apart from those currently undergoing receivership or liquidation, Maling said.
Those in liquidation or receivership would be managed under the Perpetual name, but effectively by Foundation staff.
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