It’s a not so well-kept secret that some of the largest companies in the world have Qualifying Recognised Overseas Pension Schemes set up for their employees.
While many financial advisers extol the benefits of personal QROPS pensions – like more control over retirement savings, flexible investments and a larger tax-free lump sum payment in some financial centres, companies and international organisations also invest in the funds.
Ireland is one of the key offshore financial centres for corporate QROPS.
Some of the big brands with QROPS based in Eire include:
- Aldi Stores
- Amazon
- Aviva
- Axa
- Bank of America
- Barclays Bank
- British Sky Broadcasting
- Marks and Spencer
- O2
The European Union also has a specific scheme for officials.
Forceful argument for QROPS
Despite the critics of QROPS, with new regulations to tighten up on providers launching this month and the support of such heavyweight corporates and organisations, it’s hard to see QROPS in well regulated financial centres doing anything other than prosper.
Add to that the force of the British regulator the Financial Conduct Authority all but ordering IFAs and pension advisers include QROPS in their retirement saving advice, then those approaching retirement and considering relocation overseas have a forceful argument for looking at how a QROPS can benefit their plans.
Ireland takes second place in the QROPS top 10 behind Australia. Australia has a mix of corporate and private QROPS schemes, mainly because many British expats retire to the country.
The latest top 10 shows none of the big host nations have moved places. While half of the countries have not open or closed any pensions, Australia (16), Ireland (9), the Isle of Man (1) and Canada (4) have opened new schemes.
One scheme closed in Switzerland.
Out of the other 36 nations that host QROPS providers, 11 new schemes opened, leaving them with just over 10% of the number of schemes worldwide – compared with 89% for the top 10 nations.
The total number of QROPS increased to another high – 3,140 pensions.
| QROPS – Top 10 Jurisdiction Tracker – October 1, 2013 | ||||
| QROPS jurisdiction | No of QROPS | Since last list | Market share | |
| 1 | Australia | 1244 | 16 | 39.12% |
| 2 | Ireland | 733 | 9 | 23.05% |
| 3 | Isle of Man | 229 | 1 | 7.20% |
| 4 | Switzerland | 138 | -1 | 4.31% |
| 5 | Jersey | 135 | – | 4.25% |
| 6 | Netherlands | 104 | – | 3.30% |
| 7 | Canada | 94 | 4 | 3.08% |
| 8 | Germany | 56 | – | 1.76% |
| 9 | Guernsey | 51 | – | 1.60% |
| 10 | New Zealand | 48 | – | 1.51% |
| Top 10 Total: | 2832 | 29 | 89.18% | |
| The rest | 308 | 11 | 10.82% | |
| Total: | 3140 | 40 | 100% | |
Source: HMRC
