New Zealand QROPS and why we don't advise them

The New Zealand based QROPS became a favourable option for some when it transpired that their regulatory framework for non NZ residents  gave you the option to 'bust' (as it was termed) your UK pension and enable you to access all the money in the pension as a lump sum.  

This clearly contravened the intentions of QROPS and in April 2012 HMRC in the UK closed that option down.


NZ QROPS still exist, but the benefits they offer are now on par with other schemes available in Malta and Gibraltar (The 2 main jurisdictions which provide QROPS).

At the Spectrum IFA group (Italy) we only advise our clients on Malta based (primarily) and Gibraltar based QROPS.

Why?  Well the fact is that since Malta is inside the EU, we believe that it offers a very stable and compliant framework for clients who wish to take the QROPS option but who are intending on residing in Italy.

Malta is a well regulated jurisdiction, it is compliant with EU law and therefore transparent for tax purposes (very important these days) and it is close by.  In a world of email communication and skype this may not seem important, but we think it is.  If there are issues we need to resolve, terms we need to negotiate or people we need to see, we can just jump on a plane and get there very quickly.

Most QROPS, wherever they are based, offer similar fees and terms/conditions so we don't see this as being a reason to stray too far from home.

We feel that all these points are important for the security of our clients.  For this reason, we don't advise on NZ based QROPS.

If you would like any information on this or any other financial planning related matter you can contact me on gareth.horsfall@spectrum-ifa.com or cell 3336492356.

This information is based on the current situation, but may be subject to change in the future depending on tax and regulatory circumstances.