Guernsey QROPS pension providers pledge code of conduct

Guernsey QROPS pension providers are signing up to a code of conduct aimed at giving investors extra safeguards.

A technical committee will lead a group of pension providers, accountants, lawyers and the island’s financial regulators.

The committee will impose a set of rules all members are expected to follow so clients transferring money in to a Guernsey QROPS pension can expect a consistent level of service across all the island’s financial firms.

Financial professionals hope to have the code in place by June.

With the weight of the financial regulator behind the code, any provider not abiding by the scheme is likely to face questions from financial advisers and prospective clients.

The code will not be enforceable by law but a voluntary code.

Industry insiders suggest the idea of a code of conduct has arisen from alleged problems for some QROPS investors who have had difficulties in transferring assets from Guernsey.

Guernsey is a top destination for QROPS transfers

Guernsey is a favourite destination for QROPS pension transfers as investors gain confidence from the financial security and stability of the island. The island is also English speaking and has close ties with the UK mainland, which reduces difficulties in dealing with a foreign language provider.

QROPS Adviser handles hundreds of UK pension transfers to Guernsey, and has a close working relationship with many providers based on the island.

Guernsey QROPS have all the usual tax and investment advantages like:

• Tax-free capital gains roll up and asset growth
• No need to buy an annuity
• No UK inheritance tax on passing any remaining fund to family or loved ones on QROPS holder’s death
• 25% tax free lump sum draw down
• Flexible investments and benefit payments in all major currencies

On top of that, some Guernsey QROPS allow pension holders to borrow against their funds.

For more information about Guernsey QROPS, contact QROPS Adviser and we will put you in touch with a skilled independent financial adviser who will help you initiate your QROPS pension transfer.