The Isle of Man Association of Pension Scheme Providers (APSP) has stated that the Isle of Man will continue to monitor the situation before any decision on changes to QROPS legislation is made.
The Isle of Man Association of Pension Scheme Providers (APSP) said it has been working together with various Isle of Man Government Departments to ensure that a solution to the QROPS industry leading 50C Schemes is not only robust, but also has longevity in relation to future business.
Speaking on behalf of the APSP, Deputy Chairman Mark Kiernan said: “The Island finds itself in an unusual situation. The amendments which are required to make 50C meet the new HMRC Regulations are minimal in nature, however some of the Budget announcements made by HMRC have potentially serious undertones attached to them. We’re not the kind of jurisdiction which simply introduces new legislation as a knee jerk reaction, and even though Government could have introduced the legislative changes a number of weeks ago, they have put on hold the introduction of these until the intention of HMRC is clear. That’s not to say that we consider what other jurisdictions have introduced won’t work, but that we still have sufficient doubt from our perspective to mean that we will not introduce any changes just yet.”
As a leader in international pensions the Isle of Man says it remains committed to this market. "Once the external indicators we are seeking are confirmed, the Isle of Man will introduce the required changes to 50C, following which I have no doubt 50C will progress through our parliamentary system as a matter of priority,” said Kiernan.
Kiernan added: “Undoubtedly there will be a pause in service whilst we wait for clarity on these issues. However, it is extremely important as a transparent and well regulated jurisdiction that 50C not only remains competitive, but that it remains established and operated in a manner that meets the objective of providing the member with their pension entitlement at the point of retirement. ”
The Isle of Man also offers other QROPS schemes which are not affected by the recent UK changes, meaning that it remains very much open as a QROPS transfer destination.
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