Guernsey–based RBC Corporate Employee & Executive Services (cees), part of Royal Bank of Canada, has launched two QROPS offering varying degrees of investment flexibility and benefits.
RBC cees, a sister company of RBC Wealth Management, said the Fermain and Havelet QROPS had been developed in response to growing demand from UK-based clients who are planning to leave the UK.
Fermain offers a pre-approved fund range, which the scheme trustee, RBC Trust Company, will monitor and review.
Havelet differs in offering full investment flexibility. Features include the ability to appoint the scheme member as an investment adviser, to use a discretionary manager, to purchase and occupy residential property and being able to borrow up to 25% of the pension fund’s value.
Other benefits of all Guernsey-based QROPS scheme include being able to take a 25% tax-free lump sum at retirement and no tax on income payments.
The QROPS are meant for individuals but RBC cees said it could also provide trustee and administration services to companies planning to set up their own QROPS schemes.
Lindsey Doud, director and head of business development for RBC cees, said: “QROPS is particularly pertinent in the current environment, as RBC Wealth Management is seeing an increasing number of enquiries from clients who are thinking about leaving the UK as a result of the 50% income tax rate announced in the last Budget.”
