Further Super (QROPS) Funds added to HMRC ROPS list

[Andrew from Vista Financial]

Overnight a further three Australian Super Funds were confirmed as obtaining QROPS status and added to the HMRC ROPS list: https://www.gov.uk/government/publications/list-of-qualifying-recognised-overseas-pension-schemes-qrops/list-of-recognised-overseas-pension-schemes-notifications#australia

 

It would seem from my research that two of the funds are SMSFs and I would presume for members over age 55 only (although I cannot confirm this at this stage).

 

The other scheme is the Commonwealth Superannuation Scheme (CSS) however this scheme is not a public offer scheme and in fact closed to new members from 1 July 1990. The only exception applies to previous members who, in specific circumstances, are able to return to the scheme.

 

Similarly to the LGS scheme on the list, the reason that the CSS fund can be on there and for any age and not solely intended for over 55s is that the he Pension Age Test does not apply to overseas public service pension schemes and pension schemes of international organisations (such as OECD, the UN etc, not multinational companies).

 

Therefore it seems that we are still in the same situation that we were following the release of the 1 September ROPS list being that no public offer scheme exists and likely that the SMSF over 55s solution is still the only Australian solution for now.

 

Regards

 

Andy

Edited September 16, 2015 by Andrew from Vista Financial

[nomorehashbrowns]

Looked at it yesterday Andy, very disappointing for a lot of people I guess. I wonder why many of those pre June companies that held a QROPS certificate haven't looked into an over 55 "club".

[Andrew from Vista Financial]

It will definitely be something they are considering, I have just finished a meeting with one superannuation company as I put a business case forward for them last week.

 

They are quite a progressive company and relatively small compared to the big boys so I thought that they could be quite nimble with it as theoretically it is easily done.

 

However in practice and even with them they have told me it will take months as there are a number of processes and bodies they need to go through as it is essentially a brand new product, meaning new PDS's etc as well.

 

With some of the others they may not deem it to be commercially viable now it is quite a limited market.

 

Regards

 

Andy