The problem with choosing a Qualifying Recognised Overseas Pension Scheme (QROPS) is anyone can see how many pensions are available offshore, but no one really knows where the money goes.
Although HM Revenue & Customs (HMRC) publishes a QROPS List on the first and 15th of each month, the document only shows how many pensions are open for transfers from UK onshore pensions.
This makes the list a good comparison for each financial jurisdiction’s market share by number of QROPS.
However, a single QROPS in a jurisdiction with a low market share could have more money invested than several hundred pensions in another.
HMRC and many providers are cautious about publishing ‘commercially sensitive’ information, but that really does not help someone seeking to transfer their UK pension into a QROPS.
Following the money
The tables below offer an analysis of the QROPS market in three ways:
- By number of QROPS
- By market share
- By the number of QROPS added in the past year
The tables clearly show Australia leads the way in the global market in each table – but most Australian QROPS are custom plans for individuals, while those offered by providers on the Isle of Man and Gibraltar are generally schemes with more members.
Clarifying not only which are the most popular jurisdictions by number of QROPS, but also by the amount of money invested would make the HMRC list more useful for advisers and investors.
That does not mean advocating following the money, but simply giving consumers more options when choosing which pension is right for them.
| Top 10 QROPS Tables - October 15, 2014 | ||
|---|---|---|
| Count of QROPS pensions | ||
| Values | ||
| Jurisdiction | October 15, 2013 | October 15, 2014 |
| Australia | 1254 | 1515 |
| Ireland | 736 | 770 |
| Isle of Man | 229 | 224 |
| Switzerland | 137 | 139 |
| Jersey | 135 | 137 |
| Netherlands | 105 | 114 |
| Canada | 98 | 101 |
| Guernsey | 52 | 82 |
| New Zealand | 48 | 59 |
| Germany | 56 | 55 |
| Total: | 2850 | 3196 |
| Source: HMRC | ||
| Market share by number of QROPS | ||
| Jurisdiction | October 15, 2013 | October 15, 2014 |
| Australia | 39.40% | 42.71% |
| Ireland | 23.12% | 21.71% |
| Isle of Man | 7.19% | 6.32% |
| Switzerland | 4.30% | 3.92% |
| Jersey | 4.24% | 3.86% |
| Netherlands | 3.30% | 3.21% |
| Canada | 3.08% | 2.85% |
| Guernsey | 1.63% | 2.31% |
| New Zealand | 1.51% | 1.66% |
| Germany | 1.76% | 1.55% |
| Total: | 89.54% | 90.10% |
| Source: HMRC | ||
| Most QROPS added in past year | ||
| Jurisdiction | No of QROPS | |
| Australia | 261 | |
| Ireland | 34 | |
| Guernsey | 30 | |
| Gibraltar | 18 | |
| New Zealand | 11 | |
| Netherlands | 9 | |
| Malta | 6 | |
| Canada | 3 | |
| Austria | 2 | |
| Jersey | 2 | |
| Switzerland | 2 | |
| Latvia | 2 | |
| Hong Kong | 2 | |
| Italy | 2 | |
| Total: | 384 | |
| Source: HMRC | ||
