Proposals to update Guernsey’s QROPS rules to tighten rules to stop pension misselling have sparked a public online disagreement between financial experts.
Guernsey QROPS committee revealed the island had approached HM Revenue and Customs about revamping pension rules to pre-empt a possible inquiry.
The island’s QROPS providers fear questions might be on the way from the tax man that could jeopardise confidence in Guernsey’s status as a QROPS provider.
The providers have asked the Guernsey government to increase the trivial commutation of pensions to £30,000 from the current £25,000 and raising the starting level for a new QROPS from 25% to 30% of the transfer fund.
Guernsey QROPS committee has made a comment online clarifying these are proposed amendments to Guernsey’s pension rules and that although they have support within the government, discussions about making them law are ongoing.
Other commentators feel that Guernsey QROPS committee is over stating views that Guernsey pension providers wish to see implemented but are not yet in place.
Making the right QROPS decision involves complex tax and legal issues, made even more complicated by the tax residence of the scheme member and their personal financial circumstances and objectives.
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