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
As Insignia Financial formally completes the separation of MLC from NAB, Money Management reflects back on how the acquisition came to be and where Insignia sees MLC going forward.
The Financial Services Council has made multiple recommendations to ASIC regarding exercising its powers around AFSLs to mitigate the risk of failing companies including greater capital requirements.
Advice licensee Centrepoint Alliance has announced a service partnership with self-managed superannuation fund solution provider SuperConcepts.
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
