HMRC have produced their latest Recognised Overseas Pension Scheme (ROPS) list detailing over 3,700 QROPS providers covering 45 jurisdictions. As mentioned before, HMRC’s QROPS list has morphed into the ROPS list though nothing has changed except the wording. To clarify, all QROPS providers are self certified and may not be qualified upon further scrutiny. Similarly, not all qualifying schemes based abroad will show up. A current snap shot of the number of QROPS per location based on HMRC’s list can be found below.

New Zealand QROPS encounter problems

The number of listed NZ QROPS has dropped by over 40% compared to the last update just over 2 weeks ago. The exact reasoning behind this is unknown but may have to do with the latest changes to QROPS rules which came into force recently. The size of the drop suggests it is a jurisdictional issue rather than provider specific.
 
Important: Do not panic. Other jurisdictions have been through a similar delisting of a sizeable number of their QROPS providers. What follows is general guide on what this means to you.

Not all QROPS have to be on HMRC’s list to be qualifying as a recognised overseas pension. Therefore, contact your prover and clarify its status. If it is then there is nothing further to do. Otherwise, establish the reasoning behind it’s de-listing
In these circumstances your QROPS provider will be barred from accepting any further transfers. In most cases they will liaise with HMRC to be re-instated. For you, it is important to ascertain whether the QROPS was ever qualified &, if so, when, or if it’s qualification has ceased
You may be liable for member payment charges. It could be possible to avoid this cost if you can show that the transfer was made in good faith. This principle applies to schemes who unwittingly accept unauthorised payments so HMRC could look upon your case favourably. This matter should be discussed with your provider and HMRC.
Liability for the member payment charge does not apply if, when you access your funds, you have never been a UK resident in the previous 5 tax years or the current tax year. This applies to all withdrawals since the QROPS lost its qualifying status which may have been before you were aware of the situation.
 
Of importance, you are under no obligation to transfer out of your existing scheme. You can still receive benefits without incurring the member payment charge so long as the scheme is run in the same manner as if the QROPS status remained.

Apart from the NZ QROPS issue there was very little change in the number of listed providers.

[Total: 14    Average: 4.9/5]

 

HMRC lists QROPS providers written by Liberty Wealth average rating 4.9/5 - 14 user ratings