Skandia has been forced to review its QROPS arrangement following a decision by HM Revenue & Customs in April this year to remove nearly all Guernsey based QROPS, including Skandia’s partner company Concept Group, from its list of recognised schemes.
HMRC’s decision to strike these schemes from its list has had no material impact on the schemes themselves or the clients within them, as HMRC said it will treat any transfer made into them as having been made into a recognised QROPS. However, no new transfers can be made to the schemes, thus rendering Skandia’s arrangement with Concept, under which its offshore bonds were used to house the QROPS assets, obsolete – in new business terms at least.
On the relationship with Concept, Skandia said “we maintain a close relationship with the Concept Group and are in ongoing dialogue regarding their future plans to continue providing QROPS solutions”.
The UK-based life company said it has now teamed with a “select group of QROPS providers with whom it will be working to offer simplified QROPS arrangements across multiple jurisdictions”.
The range of trustees will initially comprise of providers who offer QROPS based in Malta and the Isle of Man, said Skandia, which added that these jurisdictions were recently voted the most popular for QROPS in its second quarter 2012 adviser confidence survey.
Skandia said the first entrants are Malta-based MC Trustees, Isle of Man provider Boal & Co and Momentum Pensions, which offers schemes from both Malta and the Isle of Man.
Rachael Griffin, head of product law and commercial development at Skandia International said: “As one size does not fit all, it makes complete sense to offer advisers a range of options to ensure advisers can match their clients’ needs appropriately and as closely as possible.
“We are delighted to be joining forces with a selection of QROPS trustees and are confident that our collective capabilities in our respective areas of expertise will be of benefit to advisers and make this proposition a great success.”
