New Zealand QROPS will benefit if voluntary code of conduct goes ahead
When it comes to matters of financial planning, you want to be certain that you’re getting good advice and investing in schemes and wealth management plans that are fully compliant with the law. In March 2011, HMRC put together a specialised unit to deal with Qualifying Recognised Overseas Pension Schemes (QROPS) that are suspected of being abusive of regulations. This was a direct response to the worryingly high number of QROPS that HMRC has closed down due to lack of compliance.
QROPS in New Zealand have had their fair share of bad publicity and we recently reported that in an attempt to restore the reputation of New Zealand QROPS, a voluntary code of conduct was being considered, headed by compliance consultancy firm, Strategi. As news has spread of this intention, the idea has gone on to receive support from many financial advice companies; professional advisers in the wealth management industry have a vested interest in preserving a good reputation and ensuring that clients receive only good, honest advice.
QROPS – Seeking good financial advice is vital
Guardian Wealth Management group chief executive, David Howell, has stated that he feels this development would be a positive step forward and would provide “greater stability to the QROPS market in the jurisdiction”. He also noted that while QROPS can offer a range of benefits to expats, it’s important to seek good financial planning advice from an authorised and regulated advisory firm. This ensures that you are armed with all of the relevant information on QROPS and understand the tax implications in the event that you might decide to return to live in the UK.
If New Zealand QROPS advisers agree to go ahead with the voluntary code of conduct, it should see a welcome end to mis-selling and bad information from advisers who are damaging the reputations of QROPS in the country. Mark Hattersley from Strategi says that this code of conduct would mean that “product providers agree to turn away new business from unscrupulous advisers and abide by both the spirit of and the QROPS legislation itself.”
Guardian Wealth Management, along with other reputable financial advice organisations, recognises that this would be a welcome change and fully support the intended code. It would mean an end to poor value products and offer peace of mind to expats who have heard damaging news reports – it is clear that there is a need to regain confidence in the New Zealand QROPS market.
If you’re looking for QROPS advice or general help and guidance with your financial planning and wealth management, contact our expert financial advisers today or feel free to download our comprehensive QROPS guide.