New Code Of Practice For New Zealand QROPS

QROPS providers based in New Zealand are in the process of developing a new code of practice designed to improve the country’s reputation as an overseas pension provider.

London, UK (Pryce Warner International) May 11th, 2011 – QROPS (Qualifying Recognised Overseas Pension Schemes) are overseas pension plans tailored for British Expats retiring abroad that enable them to draw a more stable income overseas.

Over the past few years some QROPS in New Zealand have been closed by the HMRC for failing to fully comply with the outlined regulations.

The new code will be voluntary and is designed to rebuild consumer confidence in the schemes and also offer QROPS providers a framework to ensure that they are fully compliant with HMRC regulations.

Though QROPS are designed to enable Expats to draw a regular pension overseas, some providers have attempted to offer the plans as tax benefits by allowing Expats to withdraw their assets in a lump sum once it has been transferred.

The move towards a more open system is a welcome one, as it will ensure more transparency on a scheme that at present can be misused.

The benefits that QROPS offer are vital for many Expats in securing an income when retiring overseas and any attempt to strengthen the stability of the service is good news for consumers.

Individuals’ attempting to arrange QROPS without the necessary experience has also led to Guernsey releasing a voluntary code for QROPS. The code strongly recommends that all consumers seek advice from professional overseas pension providers prior to considering transferring their pension.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International, specialists in the Provision of Pension Plan Management for Expatriates Worldwide commented: “QROPS offer numerous advantages for those retiring overseas compared with a traditional pension. Not only do they offer are more reliable source of income but they also offer inheritance benefits, particularly when transferred into a QNUPS. However, the process of moving a pension overseas is not a simple one and those considering such a move should always ensure that they consult a professional overseas financial group before doing so. The tax implications and regulations that need to be accounted for are highly stringent and therefore individuals may not always have the necessary background to correctly transfer their assets overseas. These new regulations will hopefully ensure that more people feel safe doing so in the future, and ensure the long term viability of what is a vital service for many.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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