Firms providing pensions have always been subject to licensing and supervision in Guernsey but the scope of the previous supervisory regime did not extend to pension schemes.
The new supervisory framework, announced earlier this week, is due to come into effect from June this year.
It will ensure the island’s 50-plus international pension product providers will be formally supervised for the first time, as well as introducing a set of Conduct of Business Rules for domestic and international schemes.
Qnups boost
Speaking to International Adviser, White said it is possible that the Guernsey government is updating the regulatory framework to boost the island’s market for qualifying non-UK pensions schemes (Qnups).
“Guernsey has been consistently behind other jurisdictions in terms of the regulatory oversight of their pension schemes."
“Guernsey providers do also offer Qnups, which is now likely to be a more important market for non-resident new business.
“However, I think it is more likely that the announcement is part of a longer standing review of the overall pensions regulatory framework.
“Guernsey has a well-established pensions market in other areas as well and will wish to ensure that it remains in line with the every increasingly regulated global markets and is able to meet new global reaching regulations such as the Common Reporting Standards (CRS),” he said.
However, a spokesperson for Guernsey Finance, said the “two events are not linked”, adding that the process to update Guernsey’s regime began almost 12 months ago when the Guernsey Financial Services Commission launched a consultation with pension providers based on the island.
Qrops cull
Another source told IA that he believes Guernsey updated its pension rules to include international schemes to comply with new requirements introduced by the UK tax office.
“Guernsey will be going down the regulated route as if they don’t, their schemes can’t be Qrops which is probably the bigger driver,” he said.
From April this year, HM Revenue & Customs (HMRC) said it will require all foreign pensions to be regulated in their country of origin.
The move led the department to suspend its fortnightly publication of the Rops list on on 13 April.
The list contains qualifying recognised overseas pension schemes (Qrops) that have told HMRC their product meets the criteria for inclusion.
Nine countries were removed entirely from the Rops list when it was republished on 18 April including the Czech Republic, Greece, Iceland, Jamaica, Kosovo, Portugal, Sri Lanka, Sweden, and Turkey.
continued on the next page
