Qualifying Recognised Overseas Pension Schemes (QROPS) have undergone a new round of rule changes – but this time they effect behind-the-scenes management rather than retirement savers.
HM Revenue and Customs have released details of the upgraded administration of QROPS in a newsletter circulated to pension professionals.
The newsletter explains the changes and links into HMRC web site pages for more detail.
The new rules herald a massive administrative change as managing QROPS moves from an international paper-based process on to a secure internet service as part of HMRC Online and the Government Gateway.
More than 3,000 QROPS in 46 countries with thousands of retirement savers will have to start moving online from December 2013.
QROPS review fears
Besides announcing the online move, the newsletter also included some information about updated information on redesigned forms for use by QROPS administrators in the interim.
The QROPS industry had feared another major shake-up was on the way, but as yet HMRC has not indicated any front-end rules change for retirement savers.
The newsletter announcement follows the delisting of 23 Hong Kong QROPS two weeks ago, which neither the providers or HMRC has given any reason for, leaving just two open QROPS in the jurisdiction.
The industry was concerned HMRC may take the opportunity of revamping QROPS administration to introduce further rules restricting pension fund transfers.
One worry is HMRC was forced to hand over a QROPS policy statement to the High Court following the recent Singapore ROSIIP QROPS case. As yet, the content s of the document have not been released.
Singapore QROPS
The case concerned investors in the Singapore QROPS combatting an HMRC tax assessment for illegally transferring retirement savings from the UK into the scheme.
HMRC urged the court to let them withdraw from the case and cancelled the tax assessments – but the judge demanded the statement and has yet to publish his ruling.
QROPS advisers and providers fear that HMRC may use this policy statement as an opportunity to revise tax rules for the offshore pensions.
The QROPS list on August 15, 2013 shows if any of the suspended Hong Kong QROPS are relisted – and if the High Court case policy statement is reflected in the number of providers and jurisdictions offering QROPS.
QROPS have been surrounded with controversy since they were introduced in August 2006 – but it’s fair to say most of the controversy has involved advisers, providers and retirement savers trying to bend the rules.
