QROPS - New rules/HMRC Penalties
Apr 22nd 2012, 7:09 am
#1
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QROPS - New rules/HMRC Penalties
Have been in Canada for 8 years & transferred to a QROPS last year.
The new rules implemented by HMRC this month open a whole can of worms:
http://www.hmrc.gov.uk/pensionscheme...s-template.pdf
http://www.hmrc.gov.uk/budget-update...s-guidance.pdf
Key implications:
1) All sums transferred out from a QROPS are reportable to HMRC within 10 years, including retroactively i.e. all reportable until 2016 (10 years from the inception of QROPS) at the very earliest.
2) Any QROPS scheme that has not been operating compliantly (e.g. including failing to report withdrawal transactions to HMRC), may be de-registered. Here's the scary bit:
a) In this situation the QROPS designation may actually never have been fulfilled i.e. the scheme may not have been operating as a QROPS at all, leaving all members who transferred into the QROPS liable for penalties/fines of up to 55% of the amount transferred in !
b) The above notwithstanding the fact that the member has transferred in good faith to a registered QROPS (HMRC makes it clear that just because the QROPS self certified it would report compliantly does not mean it will have done so).
3) How members are supposed to protect themselves from QROPS operating in a non-compliant manner (either at the time of transfer, or at any time thereafter), and therefore protect themselves from massive penalties is entirely unclear.
Note - if a Canadian QROPS provider failed (knowingly or otherwise) to report transactions to HMRC & the RSP holder suffered penally as a result, then the member would presumably have rights of recourse against the QROPS provider.
4) Also unclear how HMRC can actually levy/pursue penalties against persons who are permanent non-residents anyway.
5) The re-write of the rules was - I believe - prompted by abuse in some parts of the world (not Canada in the main), so whether the HMRC will actually go after Canadian QROPS providers/members in the same way as they have in e.g. New Zealand or Guernsey remains to be seen.
All in all however, an unholy mess.................
The new rules implemented by HMRC this month open a whole can of worms:
http://www.hmrc.gov.uk/pensionscheme...s-template.pdf
http://www.hmrc.gov.uk/budget-update...s-guidance.pdf
Key implications:
1) All sums transferred out from a QROPS are reportable to HMRC within 10 years, including retroactively i.e. all reportable until 2016 (10 years from the inception of QROPS) at the very earliest.
2) Any QROPS scheme that has not been operating compliantly (e.g. including failing to report withdrawal transactions to HMRC), may be de-registered. Here's the scary bit:
a) In this situation the QROPS designation may actually never have been fulfilled i.e. the scheme may not have been operating as a QROPS at all, leaving all members who transferred into the QROPS liable for penalties/fines of up to 55% of the amount transferred in !
b) The above notwithstanding the fact that the member has transferred in good faith to a registered QROPS (HMRC makes it clear that just because the QROPS self certified it would report compliantly does not mean it will have done so).
3) How members are supposed to protect themselves from QROPS operating in a non-compliant manner (either at the time of transfer, or at any time thereafter), and therefore protect themselves from massive penalties is entirely unclear.
Note - if a Canadian QROPS provider failed (knowingly or otherwise) to report transactions to HMRC & the RSP holder suffered penally as a result, then the member would presumably have rights of recourse against the QROPS provider.
4) Also unclear how HMRC can actually levy/pursue penalties against persons who are permanent non-residents anyway.
5) The re-write of the rules was - I believe - prompted by abuse in some parts of the world (not Canada in the main), so whether the HMRC will actually go after Canadian QROPS providers/members in the same way as they have in e.g. New Zealand or Guernsey remains to be seen.
All in all however, an unholy mess.................
Apr 22nd 2012, 11:15 am
#2
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Posts: 428
Re: QROPS - New rules/HMRC Penalties
Have been in Canada for 8 years & transferred to a QROPS last year.
The new rules implemented by HMRC this month open a whole can of worms:
http://www.hmrc.gov.uk/pensionscheme...s-template.pdf
http://www.hmrc.gov.uk/budget-update...s-guidance.pdf
Key implications:
1) All sums transferred out from a QROPS are reportable to HMRC within 10 years, including retroactively i.e. all reportable until 2016 (10 years from the inception of QROPS) at the very earliest.
2) Any QROPS scheme that has not been operating compliantly (e.g. including failing to report withdrawal transactions to HMRC), may be de-registered. Here's the scary bit:
a) In this situation the QROPS designation may actually never have been fulfilled i.e. the scheme may not have been operating as a QROPS at all, leaving all members who transferred into the QROPS liable for penalties/fines of up to 55% of the amount transferred in !
b) The above notwithstanding the fact that the member has transferred in good faith to a registered QROPS (HMRC makes it clear that just because the QROPS self certified it would report compliantly does not mean it will have done so).
3) How members are supposed to protect themselves from QROPS operating in a non-compliant manner (either at the time of transfer, or at any time thereafter), and therefore protect themselves from massive penalties is entirely unclear.
Note - if a Canadian QROPS provider failed (knowingly or otherwise) to report transactions to HMRC & the RSP holder suffered penally as a result, then the member would presumably have rights of recourse against the QROPS provider.
4) Also unclear how HMRC can actually levy/pursue penalties against persons who are permanent non-residents anyway.
5) The re-write of the rules was - I believe - prompted by abuse in some parts of the world (not Canada in the main), so whether the HMRC will actually go after Canadian QROPS providers/members in the same way as they have in e.g. New Zealand or Guernsey remains to be seen.
All in all however, an unholy mess.................
The new rules implemented by HMRC this month open a whole can of worms:
http://www.hmrc.gov.uk/pensionscheme...s-template.pdf
http://www.hmrc.gov.uk/budget-update...s-guidance.pdf
Key implications:
1) All sums transferred out from a QROPS are reportable to HMRC within 10 years, including retroactively i.e. all reportable until 2016 (10 years from the inception of QROPS) at the very earliest.
2) Any QROPS scheme that has not been operating compliantly (e.g. including failing to report withdrawal transactions to HMRC), may be de-registered. Here's the scary bit:
a) In this situation the QROPS designation may actually never have been fulfilled i.e. the scheme may not have been operating as a QROPS at all, leaving all members who transferred into the QROPS liable for penalties/fines of up to 55% of the amount transferred in !
b) The above notwithstanding the fact that the member has transferred in good faith to a registered QROPS (HMRC makes it clear that just because the QROPS self certified it would report compliantly does not mean it will have done so).
3) How members are supposed to protect themselves from QROPS operating in a non-compliant manner (either at the time of transfer, or at any time thereafter), and therefore protect themselves from massive penalties is entirely unclear.
Note - if a Canadian QROPS provider failed (knowingly or otherwise) to report transactions to HMRC & the RSP holder suffered penally as a result, then the member would presumably have rights of recourse against the QROPS provider.
4) Also unclear how HMRC can actually levy/pursue penalties against persons who are permanent non-residents anyway.
5) The re-write of the rules was - I believe - prompted by abuse in some parts of the world (not Canada in the main), so whether the HMRC will actually go after Canadian QROPS providers/members in the same way as they have in e.g. New Zealand or Guernsey remains to be seen.
All in all however, an unholy mess.................
The new rules from April have certainly been introduced to stop various QROPS jurisdictions from around the world abusing what QROPS was set up for........to transfer your UK pension to where you now reside and intend to retire.......... not to transfer the pension to a country where it will receive preferential tax treatment !!!!!
HMRC now requires the QROPS provider to report any withdrawals from a UK transferred pension within 10 years of the transfer instead of 5 full tax years of being non resident as was the previous rule. This will create no further issues than under the previous rules unless you are aiming to make a withdrawal from your pension ( which under UK rules you cannot ) .The unauthorized member charge that could be levied is also no different from under the previous rules..... i.e it is levied if a withdrawal is made and you have not been non resident from the UK for 5 full tax years or more.
This is taken from the Q&A in regards to QROPS providers that now no longer Qualify to be a QROPS :
What will happen to a member’s pension savings in a QROPS if the scheme dodoesnt meet the conditions to be a QROPS from 6 April 2012?
"If a pension scheme that is a QROPS on 5 April 2012 no longer meets the conditions to be a QROPS on 6 April 2012 members of the pension scheme will be able to remain as members and receive a pension paid from the sums transferred without incurring member payment charges.
Provided it meets all of the current conditions, a transfer made to a QROPS on or before 5 April 2012 will be a "recognised transfer" and members of a pension scheme that is no longer a QROPS will be able to remain as members and receive a pension paid from the sums transferred without incurring member payment charges."
I can only talk about the QROPS providers in Canada for which my clients use, and they meet the old & the new rules to be a QROPS and follow the procedures that the HMRC requires in regards to reporting.
It did come to light ( on this forum) that a certain company in Canada were giving incorrect advice in regards to clients withdrawing from their RRSP and not providing the correct reporting to the HMRC. As this is a company I do not place my clients QROPS business with I cannot comment on the situation for people who have transferred into an RRSP with this particular provider.
In regards to the HMRC and how they would levy any penalty is that they would contact you if an unauthorized withdrawal has taken place........this would be any withdrawal from a UK transferred pension that has taken place within 5 full tax years of you being non resident from the UK. This means ANY withdrawal, an this is where that certain QROPS provider in Canada was giving incorrect advice and telling their clients it didnt count if the withdrawal was for a Homebuyers withdrawal in Canada.
All in all, the rewrite of the rules was necessary because the HMRC left loopholes for jurisdictions to abuse QROPS and promote the transferring of UK pensions for other reasons other than the main reason it was intended for........to transfer your pension funds to the country that you reside and intend to retire in !!!
Canada as a jurisdiction matches what QROPS was intended for.
You would not move your pension to an RRSP in Canada unless you were resident. Therefore you would only move your UK pension to Canada, because you reside here and intend to retire here......not because you are aiming for a tax incentive/benefit for your pension funds.......this being exactly what Guersney provided for it QROPS members !!!! and exactly why the HMRC has introduced the new rules.
The new rule changes make very little difference to people looking to move their pension funds specifically to Canada. It just tightens up other jurisdictions around the world !!
Apr 22nd 2012, 11:27 am
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Re: QROPS - New rules/HMRC Penalties
MJW - Thanks for the response, but I think you have missed my key point.
I understand (& agree completely) that the reasons to transfer a Pension to a QROPS should not be tax driven.
However, the key point I am making is that if you transfer to a QROPS that does not report withdrawals to HMRC as it should do, then it will have never actually have been a QROPS & therefore any transfer made thereto cannot be a 'recognised transfer', even if made in good faith. To quote from page 12 of the HMRC guidelines:
"If a scheme has been included on the list in circumstances where it should not have been included e.g. because it did not satisfy the conditions to be a recognised overseas pension scheme, any transfer will potentially not be a recognised transfer. As such, the transfer could give rise to an unauthorised payments charge and unauthorised payments surcharge liability for the member and to a scheme sanction charge liability for the scheme administrator (see RPSM14102020 and RPSM14101055)."
My concern is not that people have made unauthorised withdrawals (I agree with you & don't have much sympathy here), but instead is with those who have to the best of their knowledge complied fully, (and have made no unauthorised withdrawals whatsoever) - only to find they could face significant penalties because their QROPS is non-compliant & never actually was a QROPS in the first place !
Have you asked all of the QROPS providers you have dealt with since 2006 whether they have been reporting all of the required transactions to HMRC ?
(I regret I have good reason to believe that some providers - for reasons best known to themselves -, are choosing not to report any withdrawals to HMRC ).
I understand (& agree completely) that the reasons to transfer a Pension to a QROPS should not be tax driven.
However, the key point I am making is that if you transfer to a QROPS that does not report withdrawals to HMRC as it should do, then it will have never actually have been a QROPS & therefore any transfer made thereto cannot be a 'recognised transfer', even if made in good faith. To quote from page 12 of the HMRC guidelines:
"If a scheme has been included on the list in circumstances where it should not have been included e.g. because it did not satisfy the conditions to be a recognised overseas pension scheme, any transfer will potentially not be a recognised transfer. As such, the transfer could give rise to an unauthorised payments charge and unauthorised payments surcharge liability for the member and to a scheme sanction charge liability for the scheme administrator (see RPSM14102020 and RPSM14101055)."
My concern is not that people have made unauthorised withdrawals (I agree with you & don't have much sympathy here), but instead is with those who have to the best of their knowledge complied fully, (and have made no unauthorised withdrawals whatsoever) - only to find they could face significant penalties because their QROPS is non-compliant & never actually was a QROPS in the first place !
Have you asked all of the QROPS providers you have dealt with since 2006 whether they have been reporting all of the required transactions to HMRC ?
(I regret I have good reason to believe that some providers - for reasons best known to themselves -, are choosing not to report any withdrawals to HMRC ).
Last edited by Grizzzly; Apr 22nd 2012 at 11:58 am. Reason: Clarity
Apr 22nd 2012, 12:14 pm
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Re: QROPS - New rules/HMRC Penalties
MJW - Thanks for the response, but I think you have missed my key point.
I understand (& agree completely) that the reasons to transfer a Pension to a QROPS should not be tax driven.
However, the key point I am making is that if you transfer to a QROPS that does not report withdrawals to HMRC as it should do, then it will have never actually have been a QROPS & therefore any transfer made thereto cannot be a 'recognised transfer', even if made in good faith. To quote from page 12 of the HMRC guidelines:
"If a scheme has been included on the list in circumstances where it should not have been included e.g. because it did not satisfy the conditions to be a recognised overseas pension scheme, any transfer will potentially not be a recognised transfer. As such, the transfer could give rise to an unauthorised payments charge and unauthorised payments surcharge liability for the member and to a scheme sanction charge liability for the scheme administrator (see RPSM14102020 and RPSM14101055)."
My concern is not that people have made unauthorised withdrawals (I agree with you & don't have much sympathy here), but instead is with those who have to the best of their knowledge complied fully, (and have made no unauthorised withdrawals whatsoever) - only to find they could face significant penalties because their QROPS is non-compliant & never actually was a QROPS in the first place !
Have you asked all of the QROPS providers you have dealt with since 2006 whether they have been reporting all of the required transactions to HMRC ?
(I regret I have good reason to believe that some providers are choosing not to report any withdrawals to HMRC for reasons best known to themselves).
I understand (& agree completely) that the reasons to transfer a Pension to a QROPS should not be tax driven.
However, the key point I am making is that if you transfer to a QROPS that does not report withdrawals to HMRC as it should do, then it will have never actually have been a QROPS & therefore any transfer made thereto cannot be a 'recognised transfer', even if made in good faith. To quote from page 12 of the HMRC guidelines:
"If a scheme has been included on the list in circumstances where it should not have been included e.g. because it did not satisfy the conditions to be a recognised overseas pension scheme, any transfer will potentially not be a recognised transfer. As such, the transfer could give rise to an unauthorised payments charge and unauthorised payments surcharge liability for the member and to a scheme sanction charge liability for the scheme administrator (see RPSM14102020 and RPSM14101055)."
My concern is not that people have made unauthorised withdrawals (I agree with you & don't have much sympathy here), but instead is with those who have to the best of their knowledge complied fully, (and have made no unauthorised withdrawals whatsoever) - only to find they could face significant penalties because their QROPS is non-compliant & never actually was a QROPS in the first place !
Have you asked all of the QROPS providers you have dealt with since 2006 whether they have been reporting all of the required transactions to HMRC ?
(I regret I have good reason to believe that some providers are choosing not to report any withdrawals to HMRC for reasons best known to themselves).
All I can say is that the companies I deal with follow the correct reporting procedures, as I have spoken to the administrators directly who inform me of the reporting they have carried out. They have forms that the client has to complete showing the date they became non resident from the UK and the RRSP account is also marked with the fact that the funds were received via QROPS from a UK Pension . If a client tries to make a withdrawal , they initially put a block on the request as the funds were received from the U.K . This block is not lifted until I am informed and my client is fully aware of the ramifications of withdrawing the funds from a UK transferred RRSP. The new rules are more onerous for the RRSP providers here as they have more timely reports to complete, but having spoken to the QROPS providers I deal with, they are fully on board with the new reporting requirements.
And just playing Devils advocate for a moment.....if the receiving scheme didnt report a withdrawal.........the HMRC would not know about it in any case !!!!
........but as mentioned, certainly for the providers I deal with, they did the necessary reporting for any withdrawals under the previous 5 full tax year rule, and will continue to do the necessary reporting now the requirement has been changed to 10 years from the date of transfer !!
Apr 22nd 2012, 12:38 pm
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Re: QROPS - New rules/HMRC Penalties
Good to hear MJW.
Not all QROPS providers are doing what they should be though, leaving their Clients in a potentially vulnerable position.
Without wishing to split hairs, the QROPS application does not involve any certification by HMRC, other than an acknowledgement by them that the QROPS have said they will comply with reporting requirements. Regrettably, that doesn't mean that they actually will comply !
Just out of interest, which QROPS do you mainly use ?
Not all QROPS providers are doing what they should be though, leaving their Clients in a potentially vulnerable position.
Without wishing to split hairs, the QROPS application does not involve any certification by HMRC, other than an acknowledgement by them that the QROPS have said they will comply with reporting requirements. Regrettably, that doesn't mean that they actually will comply !
Just out of interest, which QROPS do you mainly use ?
Apr 22nd 2012, 12:50 pm
#6
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Re: QROPS - New rules/HMRC Penalties
Good to hear MJW.
Not all QROPS providers are doing what they should be though, leaving their Clients in a potentially vulnerable position.
Without wishing to split hairs, the QROPS application does not involve any certification by HMRC, other than an acknowledgement by them that the QROPS have said they will comply with reporting requirements. Regrettably, that doesn't mean that they actually will comply !
Just out of interest, which QROPS do you mainly use ?
Not all QROPS providers are doing what they should be though, leaving their Clients in a potentially vulnerable position.
Without wishing to split hairs, the QROPS application does not involve any certification by HMRC, other than an acknowledgement by them that the QROPS have said they will comply with reporting requirements. Regrettably, that doesn't mean that they actually will comply !
Just out of interest, which QROPS do you mainly use ?
Apr 22nd 2012, 1:02 pm
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Re: QROPS - New rules/HMRC Penalties
Quote:
"however, the HMRC were very quick in removing a hefty number of Guernsey providers from the list last week, so it seems they are actively checking and not just taking the providers word for it."
And that precisely is my concern MJW.
Here is the scenario I worry about:
1) QROPS provider applies to HMRC, ticking the box on APSS251 confirming they "will comply with the prescribed information requirements".
2) QROPS designation follows & multiple Client transfers of funds are received into the QROPS over the last five/six years.
3) QROPS provider chooses not to report any info. to HMRC on grounds of privacy.
4) At some point HMRC discovers non-reporting & de-registers the QROPS.
5) Consequent to (4) any transfers made into the scheme cannot be 'recognised transfers' as the non-compliant "QROPS" has therefore never actually been a QROPS in the first place (see my quote from HMRC in post #3 above).
6) Any transfers in made by scheme members are therefore potentially liable for penalties up to 55% of the amount transferred in, regardless of whether or not any withdrawals have been made, and despite the member having transferred in good faith with no unauthorised withdrawals.
Maybe I'm being paranoid, but I do have reasons for my concerns.
As I mentioned earlier, have you asked all your providers whether they are in compliance ?
"however, the HMRC were very quick in removing a hefty number of Guernsey providers from the list last week, so it seems they are actively checking and not just taking the providers word for it."
And that precisely is my concern MJW.
Here is the scenario I worry about:
1) QROPS provider applies to HMRC, ticking the box on APSS251 confirming they "will comply with the prescribed information requirements".
2) QROPS designation follows & multiple Client transfers of funds are received into the QROPS over the last five/six years.
3) QROPS provider chooses not to report any info. to HMRC on grounds of privacy.
4) At some point HMRC discovers non-reporting & de-registers the QROPS.
5) Consequent to (4) any transfers made into the scheme cannot be 'recognised transfers' as the non-compliant "QROPS" has therefore never actually been a QROPS in the first place (see my quote from HMRC in post #3 above).
6) Any transfers in made by scheme members are therefore potentially liable for penalties up to 55% of the amount transferred in, regardless of whether or not any withdrawals have been made, and despite the member having transferred in good faith with no unauthorised withdrawals.
Maybe I'm being paranoid, but I do have reasons for my concerns.
As I mentioned earlier, have you asked all your providers whether they are in compliance ?
Apr 22nd 2012, 1:26 pm
#8
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Re: QROPS - New rules/HMRC Penalties
Quote:
"however, the HMRC were very quick in removing a hefty number of Guernsey providers from the list last week, so it seems they are actively checking and not just taking the providers word for it."
And that precisely is my concern MJW.
Here is the scenario I worry about:
1) QROPS provider applies to HMRC, ticking the box on APSS251 confirming they "will comply with the prescribed information requirements".
2) QROPS designation follows & multiple Client transfers of funds are received into the QROPS over the last five/six years.
3) QROPS provider chooses not to report any info. to HMRC on grounds of privacy.
4) At some point HMRC discovers non-reporting & de-registers the QROPS.
5) Consequent to (4) any transfers made into the scheme cannot be 'recognised transfers' as the non-compliant "QROPS" has therefore never actually been a QROPS in the first place (see my quote from HMRC in post #3 above).
6) Any transfers in made by scheme members are therefore potentially liable for penalties up to 55% of the amount transferred in, regardless of whether or not any withdrawals have been made, and despite the member having transferred in good faith with no unauthorised withdrawals.
Maybe I'm being paranoid, but I do have reasons for my concerns.
As I mentioned earlier, have you asked all your providers whether they are in compliance ?
"however, the HMRC were very quick in removing a hefty number of Guernsey providers from the list last week, so it seems they are actively checking and not just taking the providers word for it."
And that precisely is my concern MJW.
Here is the scenario I worry about:
1) QROPS provider applies to HMRC, ticking the box on APSS251 confirming they "will comply with the prescribed information requirements".
2) QROPS designation follows & multiple Client transfers of funds are received into the QROPS over the last five/six years.
3) QROPS provider chooses not to report any info. to HMRC on grounds of privacy.
4) At some point HMRC discovers non-reporting & de-registers the QROPS.
5) Consequent to (4) any transfers made into the scheme cannot be 'recognised transfers' as the non-compliant "QROPS" has therefore never actually been a QROPS in the first place (see my quote from HMRC in post #3 above).
6) Any transfers in made by scheme members are therefore potentially liable for penalties up to 55% of the amount transferred in, regardless of whether or not any withdrawals have been made, and despite the member having transferred in good faith with no unauthorised withdrawals.
Maybe I'm being paranoid, but I do have reasons for my concerns.
As I mentioned earlier, have you asked all your providers whether they are in compliance ?
I appreciate you keep quoting the rules..........but it doesnt alter the fact that ALL of the providers I use are compliant with the rules, as I have mentioned in my previous post.
I have made sure before placing any clients business with a company that they explained the processes they go through and the procedures they have in place for reporting.That is my due diligence in regards to my clients. I have generally used the same companies over the last 4 years as they have good systems in place to deal with QROPS transfers and follow the correct procedures.
In fact , the privacy issue you mentioned above,would not occur as the provider asks the client to complete a form where they specifically sign to say that any information can be passed from the provider here to the HMRC in regards to a withdrawal that is made the RRSP.
Why would any QROPS company apply to be a QROPS in Canada......then not follow the rules ??? It would not make good business sense for the company to disobey or break the rules..........and if you know of such a company that is doing this ( you said you have reasons for your concerns )......you should surely make this public knowledge ??
Last edited by mjwalker007; Apr 22nd 2012 at 1:29 pm.
Apr 22nd 2012, 1:52 pm
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Re: QROPS - New rules/HMRC Penalties
I have made my views clear to the provider concerned & before quoting any names, I must await their response, in the hope they will change their current Policy of non-reporting.
As regards why any Canadian firm would apply & then not follow the rules, well I would anticipate ignorance/mis-interpretation of them might be one reason.
(I'm not trying to pick at your responses MJW, merely having a debate).
As regards why any Canadian firm would apply & then not follow the rules, well I would anticipate ignorance/mis-interpretation of them might be one reason.
(I'm not trying to pick at your responses MJW, merely having a debate).
Last edited by Grizzzly; Apr 22nd 2012 at 2:24 pm.
Apr 22nd 2012, 2:05 pm
#10
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Re: QROPS - New rules/HMRC Penalties
I have made my views clear to the provider concerned & before quoting any names, I must await their response, in the hope they will change their current Policy of non-reporting.
(From recollection from reading your postings a few years ago, I had thought you were also using them, but perhaps my memory is wrong, or maybe you stopped using the firm concerned).
As regards why any Canadian firm would apply & then not follow the rules, well I would anticipate ignorance/mis-interpretation of them might be one reason.
(I'm not trying to pick at your responses MJW, merely having a debate).
(From recollection from reading your postings a few years ago, I had thought you were also using them, but perhaps my memory is wrong, or maybe you stopped using the firm concerned).
As regards why any Canadian firm would apply & then not follow the rules, well I would anticipate ignorance/mis-interpretation of them might be one reason.
(I'm not trying to pick at your responses MJW, merely having a debate).
Apr 22nd 2012, 2:17 pm
#11
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Re: QROPS - New rules/HMRC Penalties
I have made my views clear to the provider concerned & before quoting any names, I must await their response, in the hope they will change their current Policy of non-reporting.
(From recollection from reading your postings a few years ago, I had thought you were also using them, but perhaps my memory is wrong, or maybe you stopped using the firm concerned).
As regards why any Canadian firm would apply & then not follow the rules, well I would anticipate ignorance/mis-interpretation of them might be one reason.
(I'm not trying to pick at your responses MJW, merely having a debate).
(From recollection from reading your postings a few years ago, I had thought you were also using them, but perhaps my memory is wrong, or maybe you stopped using the firm concerned).
As regards why any Canadian firm would apply & then not follow the rules, well I would anticipate ignorance/mis-interpretation of them might be one reason.
(I'm not trying to pick at your responses MJW, merely having a debate).
Apr 22nd 2012, 2:38 pm
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Re: QROPS - New rules/HMRC Penalties
My apologies MJW.
I have removed the sentence - but was genuinely interested in which providers you use. I don't know which ones you use - hence my question in post #5.
I am most definately not insinuating anything, but my concern remains simply that a QROPS Client has no way of knowing whether their provider is complying with the reporting requirements on an ongoing basis. How could they ? Whilst any given QROPS provider may be compliant one day, how does the member know this will continue to be the case in the future ?
That is the problem with the new regs. issued by HMRC, as they place a heavy onus re the compliance of the QROPS provider on the member, who cannot possibly control this.
I have removed the sentence - but was genuinely interested in which providers you use. I don't know which ones you use - hence my question in post #5.
I am most definately not insinuating anything, but my concern remains simply that a QROPS Client has no way of knowing whether their provider is complying with the reporting requirements on an ongoing basis. How could they ? Whilst any given QROPS provider may be compliant one day, how does the member know this will continue to be the case in the future ?
That is the problem with the new regs. issued by HMRC, as they place a heavy onus re the compliance of the QROPS provider on the member, who cannot possibly control this.
