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Niko Kloeten
Niko Kloeten
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QROPS picture still murky

Tuesday 17th of April 2012

QROPS (Qualifying Recognised Overseas Pension Schemes) allow the transfer of tax-advantaged UK pension funds to approved providers in other countries, for expat Brits who want to move their funds with them to their new home.

On April 6 new rules specifically targeting New Zealand QROPS providers kicked in, requiring those who transfer to a New Zealand provider after that date to hold 70% of the transferred amount as an “income for life”, with only 30% allowed to be withdrawn at the age of eligibility.

As reported by Good Returns, this left providers in a tough position due to New Zealand law making it difficult to make such changes to their trust deeds.

The UK tax department, HMRC, has released a revised list of QROPS providers, which appears to show the number of listed New Zealand providers has fallen from about 50 before the changes to just over 20.

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Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
2 days ago Steve Wright
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Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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