Until now, Momentum provided its Isle of Man QROPS to clients on a bespoke basis only.
The Momentum Isle of Man Pension Plan, as the new scheme is known, appeared for the first time on HMRC’s QROPS list on 17 Dec, and was “formally launched” on 1 Jan, according to John Batty, head of pensions at Momentum.
It offers clients the same product features and charging structure as Momentum’s Malta QROPS, which was launched in Malta in April 2011, Batty added.
Momentum chief executive Mark Gaywood said the company decided to offer the Isle of Man option to the general marketplace because “we are aware that some advisers see benefits in using the Isle of Man, which has a long pensions history”, and thus prefer to domicile their QROPS there.
Malta first became a QROPS jurisdiction in 2010, after having received HM Revenue & Customs recognition as a jurisdiction to which UK pensions could be transferred at the end of 2009.
QROPS as an entity date back to 2006, when they were created in an overhaul of UK pension regulations known as A Day.
“We believe that providing choice is key,” Gaywood added.
“This new option will allow our members the ability to switch between the Isle of Man and Malta, at no cost, should a client’s circumstances change.”
Momentum Pensions claims to have clients in more than 40 countries, to be the only QROPS provider that is able to offer “in-house compliant schemes in both Malta and the Isle of Man”.
Acquisition, expansion
As reported, BW Oakfield, an Isle of Man rival to Momentum, last year acquired a stake in both Momentum’s IoM and Maltese operations.
The purchase price of the deal was not disclosed. In announcing the deal, BW Oakfield said it was expected to enable the combined entities to expand their footprint throughout Europe, as well as to offer their clients the combined expertise of both companies in the areas of QROPS, qualifying non-UK pension schemes, and international pensions generally.
