Threat To UAE Based QROPS

Regulations presently under discussion in the UAE (United Arab Emirates) may threaten the legitimacy of QROPS overseas pensions in the region.

London, UK (Pryce Warner International) May 23rd, 2011 – The UAE Security and Commodities Authority is in the process of drawing up new regulations that will restrict the promotion of funds in the jurisdiction that do not have the approval of the UAE central bank.

At present providers are able to circumvent restrictions by offering QROPS, which are based overseas. This tactic is expected to raise the profile of such schemes and therefore lead to new regulations closing this loophole.

By restricting the choice of funds to only a few select products within the QROPS wrapper providers are able to promote these investments without approval from the UAE central bank.

Some QROPS are already being promoted in Singapore, Hong Kong and elsewhere as a way to avoid the regulations controlling investment promotion. At present this method of promoting funds is not a top priority for regulators though it is expected they will aim to respond to it in the near future.

The new regulations are expected to be finalised and agreed upon within the next few months.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International Group, Specialists in the provision of overseas pensions commented: “These regulations pose a strong risk for those living in the UAE and wishing to apply for a QROPS. Anyone concerned about the new regulations and how it effects them should seek professional advice on how best to apply for a QROPS so as not to fall foul of any regulations. Should a QROPS not be possible for Expats in the UAE, there are other tax wrappers that they may be able to take advantage of.”

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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