Hurlabrick

As of today, the HMRC QROPS list has NO entries for Canada at all!


So yes, looks like BMO pulled out.


Strikes me there is a nice market here for a provider who doesn't mind the hassle!

dgagitw

Bizarre, what on earth does Brexit have to do with this?

Hurlabrick

Nothing - it's BS!

Kentonmag

Brexit has nothing to do with it. Sounds like BMO weren't being compliant with the transfer rules, that is the only way they would be removed. Can't see BMO turning away from a cash cow as the only Canadian establishment qualified to do the transfers.

Woollyis69

Nothing at all to do with Brexit. BMO were REMOVED from the list and not something they requested. They were only on the list as these specific QROPS were designed for over 55. Unfortunately someone at BMO allowed an expat to access their pension for an HBP and this caught the eye of HMRC who promptly closed them for not being compliant. Everyone is pushing to get their institutions back on the list but this may be extremely difficult as the criteria that HMRC demand is extremely restrictive. Why there were never put into a LIRA rather than an RSP is beyond me, at least more restrictive than an RSP. That said if you are facing financial hardship or illness you can still request access to a LIRA which I believe is another reason that LIRAs don't qualify. So don't hold your breath and keep up to date with the HMRC website each month on or around the 15th when they announce their list of QROPs. If Australia can work it out I'm sure Canada can.

Hurlabrick

I don't know if it's an 'urban myth', but I heard that many of the Australian schemes got back onto the QROPS list after the initial cull by the simple expedient of making the minimum age for a transfer age 55 (which would suit me just fine!).

Strikes me this would be an easy way for a Canadian scheme to comply and at least get back on the list!

Woollyis69

Hurlabrick, I agree and this would make sense, since BMO was the only institution to keep their status. But, HMRC, is a fickle thing and they are currently playing hardball.

Edo

So if the funds land in an RSP does it mean you can combine them into your existing RRSP for example your company's RRSP account?

Woollyis69

Hi Edo, Quite simply no. That's the one stipulation that banks have followed or I assume they have followed. Any UK pension transferred should not be co-mingled with other RSP investments. I certainly am not able to mixed my RSPs together.

Edo

OK thanks. So you cant merge the funds with anything else, but what if want to transfer your QROPS from one provider to another (within Canada).

And especially right now, when there isn't even an approved provider on HMRC's list?

IDB37

Well, as HMRC have delisted every scheme, you would be transferring from one non-compliant carrier to another, so it's anyone's guess as to how HMRC would look at that.

Presumably, all of the schemes removed from the list will still comply with the ten year reporting rule, i.e. any withdrawals, or transfers from a Q/ROPS account have to be reported to HMRC.

On the other hand, the removed schemes, especially those who do not want to be re-listed anyway, might take the view that as they are no longer a Q/Rops, they no longer have to report to HMRC anyway, (which in turn may/may not lead to further inquiries from HMRC as to the lack of reporting).

What a mess.

dgagitw

I would expect that the RRSP provider you're transferring from, if you could persuade them to make the transfer to begin with, would notify HMRC. I can't see that ending well at the moment. Why do you need to move it anyway?

CDNReturner

I'm in the same situation. I'm currently changing financial advisors (due to them putting their commission up and wanting me to sign a bunch of papers I'm not comfortable with) and therefore financial institutions. But it doesn't seem I have a choice but to keep the QROPS where it is.

I'm fortunate my sister (who put me with the current financial advisor 12 years ago) is now a trained financial advisor so I'm moving over to her firm.

CDNReturner

For those of us that are way over 55 can we start withdrawing from our QROPS RRSP? I'm going to need to in the next couple of years.

Edo

Because the return on investment simply sucks.

I understand that the markets are not doing so great right now so funds are losing money because of that anyway. But the management fees of funds that your QROPS money gets invested into in Canada are also exorbitant and you have to pay them whether or not your pension is making money.

Thanks to HMRC's continuous interference there are usually not many players in the market who accept QROPS transfers (currently zero). But those who do, use agents to find them clients. These agents do all the paperwork for no charge to you as a client which is great but they get commission from the QROPS providers. And in return they lock you in with the said providers for a certain no. of years.

Generally speaking these agents operate under the umbrella of smaller financial institutions to help them stay afloat so I would assume that a part of your pension goes to them too as some sort of commission.

PS. The whole commission cycle and fund management fees are completely hidden from the client party so you never know what amount from your hard earned pension went to who.