Guernsey publishes Qrops code of conduct

Guernsey pensions providers have published a draft code of practice for sales of Qualifying Registered Overseas Pension Schemes (Qrops).

The rules, drawn up by the Guernsey Association of Pension Providers (Gapp), provide a guide for all Qrops providers operating in the jurisdiction.

Adherence to the code is voluntary. Gapp will publish a list of those who have agreed to follow, and are implementing, the code in their businesses.

Gapp chairman Roger Berry said the code would provide clarification and reassurance for advisers and consumers. 'The vast majority of Qrops business is conducted via Guernsey. One of the problems with the market is there are very differing views across Qrops providers and advisers. The code will ensure consumers will know what they are getting.'

Berry said a 'classic' example where views diverged was over the issue of whether to transfer benefits from a defined benefit scheme to a Qrops. In this and other cases the code said customers needed to speak to a specialist financial adviser to decide the suitability of such a transfer.

Qrops allow people moving away from the UK to transfer their pension funds to an overseas scheme run in accordance with HMRC rules. Registered Qrops are listed by HMRC, however appearing on the list is no guarantee that HMRC will not later decide the scheme is in breach, which could land members with a 55% tax charge on pension funds.

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