Despite occasional setbacks like last month’s surprise suspension of 115 Qualifying Recognised Overseas Pension Scheme (QROPS) , the offshore pensions market keeps marching on.
Since QROPS were introduced on April 6, 2006, the number of pensions has rocketed from zero to a record 3,423 schemes with the publish of the most recent QROPS List by HM Revenue & Customs (HMRC) on August 1, 2014.
Throughout the time Australia and Eire have reigned supreme as the two financial centres hosting the most QROPS.
Between them, they have grabbed almost two-thirds of the market by no of pensions – hosting 2,075 pensions between them.
Opening and suspended QROPS
Australia saw 115 schemes added this month, although some of these are reopening after suspension.
Other openings and closures on the latest list are:
- Two suspensions each in France and the Isle of Man
- One suspension each in New Zealand and the USA
- One scheme opening each in Gibraltar, Guernsey and Luxembourg
During the year, Canada and India have seen the most QROPS close – seven each.
HMRC does not comment on schemes closures or suspensions. The reasons can range from breaking QROPS rules to administrative reviews. A suspended scheme should not be considered as a rule-breaker.
The next QROPS List is due for publication on August 15, 2014.
| Count of QROPS pensions | ||
|---|---|---|
| Values | ||
| Jurisdiction | August 1, 2013 | August 1, 2014 |
| Australia | 1204 | 1431 |
| Ireland | 721 | 759 |
| Isle of Man | 224 | 224 |
| Switzerland | 135 | 139 |
| Jersey | 135 | 136 |
| Netherlands | 104 | 110 |
| Canada | 99 | 92 |
| Guernsey | 48 | 74 |
| New Zealand | 48 | 58 |
| Germany | 56 | 55 |
| Total: | 2774 | 3078 |
| Source: HMRC | ||
| Market share by number of QROPS | ||
| Jurisdiction | August 1, 2014 | August 1, 2013 |
| Australia | 41.81% | 38.89% |
| Ireland | 22.17% | 23.29% |
| Isle of Man | 6.54% | 7.24% |
| Switzerland | 4.06% | 4.36% |
| Jersey | 3.97% | 4.36% |
| Netherlands | 3.21% | 3.36% |
| Canada | 2.69% | 3.20% |
| Guernsey | 2.16% | 1.55% |
| New Zealand | 1.69% | 1.55% |
| Germany | 1.61% | 1.81% |
| Grand Total | 89.92% | 89.60% |
| Source: HMRC | ||
| Most QROPS added in a year | ||
| Jurisdiction | Change since August 1, 2013 | |
| Australia | 227 | |
| Ireland | 38 | |
| Guernsey | 26 | |
| Gibraltar | 21 | |
| New Zealand | 10 | |
| Netherlands | 6 | |
| Malta | 5 | |
| Switzerland | 4 | |
| Italy | 3 | |
| Latvia | 2 | |
| Austria | 2 | |
| Luxembourg | 2 | |
| Grand Total | 346 | |
| Source: HMRC | ||
Linda, one thing you need to remember when you talk about ‘suspensions’ from month to month is that pension schemes in general do come and go. A company scheme can wind up for example on buyout or merger, or a 1-member scheme can wind up on death of the member. So in these situations the Qrops registration is simply no longer required, and the scheme writes to tell HMRC this. So when eg case count falls by 2 in a month, these aren’t ‘suspensions’ as such, merely offs.