NZ company exits UK pensions arrangements
A New Zealand company dealing with pension arrangements under the UK’s Qualifying Recognised Overseas Pension Scheme (QROPS) has written a letter to clients and distributors announcing its intention to “withdraw from the international QROPS” marketplace, citing uncertainty about the future of the system.
The company, Southern Star Administration Limited, which had been promoting the Southern Star Retirement Fund, said the decision had been taken after a review of the scheme’s recent member expectations and the value proposition the company offered.
“The directors also believe there is considerable uncertainty regarding the future of the present QROPS transfer system, and have an expectation of changes being put in place by regulators which are likely to strengthen the retention requirements for members of New Zealand retirement schemes,” the letter said.
The decision by the New Zealand company follows on from reports that the UK Government is contemplating tightening the rules regarding QROPS arrangements – something that could affect the operations of financial advisers in both New Zealand and Australia.
AUTHOR
Mike Taylor
Recommended for you
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
