humanist

I recently used these guys to move my UK Scottish Widows pension into an RRSP and it was quite a painless experience so I would recommend them.

As soon as the GBP exchange rate improves (well, I may to wait a while for that) I'm going to move over my final remaining UK private pension using the same company.

lindamchugh

Hi Humanist I have messaged them to contact me thanks. Did you pay them for advice ? Did you actually "need" advice ?

Edo

Does anyone have a list of eligible Canadian QROPS providers? I know Manulife accepts QROPS but I would like to know if there are others who do.

Hurlabrick

There is a wiki article on the subject with a link to the HMRC ROP list at the bottom of the article here:

Transferring UK Pensions to Canada : British Expat Wiki

Basically only BMO at the moment (but maybe more in a year or two)!

Edo

Thanks Hurlabrick.

Its very strange that they only have BMO on this list. Mine was transferred to Manulife a couple years ago so do you know if they are no longer approved for QROPS?

mjwalker007

Manulife withdrew from the QROPS market for new business around the middle part of last year as they made a business decision that they no longer wished to offer a QROPS service going forward. They decided that for the level of business it generated for them as a company, the work involved did not justify them offering the service.

lindamchugh

New rules BMO only ones !!! we were mid transfer with Scotia and they were scrubbed off !!

Edo

That's actually good. I am pretty sure Manulife wouldn't be missed by QROPSers because of their rubbish fund options, sucky RoI and exorbitant fees.

mjwalker007

Although BMO are currently the only Canadian recognised provider on the list, other Canadian providers are currently in consultation with the HMRC to be reinstated back on the ROPS list.

Edo

So your QROPS ended up with BMO instead?

I guess both Scotia and BMO are equally good if they let you invest your QROPS into vehicles of your choice using their trading platforms and don't just force you to stick to a pile of garbage funds with extremely high MERs like Manulife.

Edo

Do you know if TD is in the game by any chance?

mjwalker007

I am unaware of TD reapplying for recognised status currently ( however that doesn't mean that they wont ).


In my opinion I do not think many Canadian companies will want to go through the process of reapplying for recognised status as they see it as a lot of work on their part ( following QROPS procedures ) without much business gain to justify the work. The providers that do reapply and get back on the ROPS list are the providers that will be committed to the program.

Edo

OK great insight.

Question: Once you transfer your QROPS into an approved Canadian institution and after a little while you want to move it to another provider within Canada, do you have to pick the second one also from HMRC's approved list Or can you just go with any RRSP provider?

I am aware that there would be fees involved in doing so but I just want to know if you can or not. Thanks.

IDB37

Transferring to a Q/Rops is not without risk & those considering doing so might wish to read the following:

http://britishexpats.com/forum/canad...-887462/page2/

.......and particularly this article, which was written well before the list was decimated:

UK advisers sound alarm over Canada pension transfers - International Investment

I do not agree that Canadian Providers have removed themselves from the HMRC list because of the lack of Business volume.

More accurately, some chose to remove themselves from the HMRC list given the inherent uncertainties of continuing to do Business, given the risk of subsequently being judged as operating outside of HMRC's (constantly changing) rules, and the consequent risk of HMRC levying severe penalties on the Pension Holder for transferring to a scheme later judged by HMRC as being non compliant.

Aside from BMO, all remaining schemes were removed from HMRC's list due to HMRC not being content with the fundamental rule that RRSP's can be accessed at any time, whereas UK legislation permits no withdrawals before age 55.

Quite why it took HMRC 10+ years to wake up to this basic fact is entirely unclear. Similarly unclear is how they can continue to say they do not "approve" any scheme on the list, whilst removing all but one carrier, (whom by implication must surely be regarded as having met HMRCs requirements).

Anyone transferring to a Q/Rops is - and always has been - reliant on the carrier meeting all of HMRC's rules at all times. As demonstrated by HMRC's recent actions in removing pretty well every scheme from the list, absolutely no one has any control over this. Nor do they have any control on who HMRC may subsequently choose to go after by way of fines of up to 55% of the amount transferred (regardless of whether any withdrawals have been made).

In theory at least, HMRC could go after every Pension transfer made to every carrier in Canada (ex. BMO) over recent years and levy a 55% fine on the basis that the scheme was never Q/Rops compliant & has therefore always been operating outside of the rules.

I have yet to read any article by any poster, (including some who apparently operate in the Business of Pension Transfers) who can explain how anyone can protect themselves against the above, as no Advisor, Client or Carrier knows what HMRC will do, as demonstrated amply by their recent cull.

Hurlabrick

What I don't understand is why all of the RRIF's were delisted?


Surely if transferring from a UK product to an RRIF, you would need to be in a UK Income Drawdown product, and if so, by definition you could not have one of these until you are age 55 - so the HMRC fetish about taking funds before age 55 cannot apply?