In a landmark move in the international QROPS industry, Gibraltar QROPS providers have announced a new code of conduct intended to provide a framework of best practice to guide the provision of these offshore pension products.
Adherence to the code is mandatory for all Gibraltar QROP scheme providers and will be enforced by the Gibraltar Association of Pension Fund Administrators (GAPFA). It is hoped that this will enhance the reputation of the Gibraltar financial services industry in general and the QROPS industry in particular.
“Members should be particularly aware of “layering” arrangements often which involve funds being transferred from another jurisdiction,” says GAPFA.
“The use of investment processes, sometimes in the form of private limited companies, EIFs, or bond wrappers permitting private loans in excess of 50% are all possible areas where abuse can occur.
“Members accepting funds, even in a limited investment capacity, should be most wary and ensure they know the original source of funds and any subsequent on-going transfer so they have complete knowledge of the entire transaction chain.”
“Effectively this means the FSC will expect adherence to the code to be best industry practice”, said GAPFA chairman Steven Knight.
For help choosing an IFA to advise on which QROP scheme to choose it is essential to consult an IFA.