Skandia International makes transfer to QROPS easier with special TVAS offer
28 Sep 2010 08:30 Skandia International
To support the international pension transfer process, Skandia International is offering a tailored version of Selectapension's Transfer Value Analysis System (TVAS) to accommodate Qualifying Registered Overseas Pension Scheme (QROPS).
Following Skandia International’s launch of the Aurora Quantum QROPS with Concept earlier this year, there has been considerable demand for a TVAS designed specifically for QROPS. In response to this, Skandia International has helped Selectapension to tailor their system and provide advisers with a flexible independent solution when they are advising QROPS to their clients.
In an exclusive deal for six months, advisers will be able to take advantage of this new service from Selectapension, at a reduced rate of £200. There will be no restrictions on the number of TVAS reports which can be run in a year and those who sign up in this introductory period will further benefit from an ongoing special charging rate for subsequent annual renewals. From February 2011, any new licence requests will be charged at the normal Selectapension annual QROPS rate of £500.
Pension transfer services are commonplace among UK pension providers. They are designed to provide the annual yield required from the transferring pension fund to leave the customer with a fund at retirement equivalent to that if they stayed in their existing pension arrangement. This new QROPS TVAS service builds on that principle by allowing advisers to include customer-specific tax and regulation information relating to both the QROPS jurisdiction and customer’s country of residence. This, together with an explanation of increased control and flexibility not able to be accounted for in the figures, all helps the customer to fully consider and understand their options.
Phil Oxenham, Skandia International Marketing Manager said:
“Outside the UK there is broadly less regulatory need to provide pension customers with a TVAS report. However, with QROPS appealing predominantly to UK expats, they have a level of expectation and knowledge which makes a TVAS helpful to the advice process. Both in the UK and internationally advisers wish to be able to support their advice with independent calculations as well as providing a detailed audit trail. In recognition of these demands, we have selected Selectapension to build, deliver and support a professional unbiased solution at a competitive price.”
Lorraine Stapleton, Director of Sales & Marketing for Selectapension said:
“Skandia International approached us to create and deliver, within a given timeframe, an independent TVAS designed specifically for QROPS. By working together we have been able to deliver a robust new system which makes advising on transferring into QROPS much easier for advisers.”
Skandia International launches digital adviser-support library
18 Aug 2010 08:45 Skandia International
Skandia International today announces the launch of ‘International Knowledge Direct’, a new website that lets advisers access a wide range of technical support material from their computer at www.skandiainternationalknowledgedirect.com
Due to the global nature of Skandia International’s business, advisers want instant access to information, and this new site allows them to obtain as much as they want at a time which suits them.
A large range of topics are covered including the taxation of offshore bonds, trusts and the latest rules around retirement planning for UK expats.
Documents in the online library are filed under key topics together with a search facility giving advisers finger-tip access to the information they want quickly and easily. Articles can be found by entering a keyword, or by browsing through the menu which includes titles on retirement planning, trusts and inheritance tax, taxation and legal matters. Advisers can save or print the documents if required.
Furthermore, to ensure they don't miss out on updates to the library, advisers can sign up to e-mail alerts which will inform them of any new material uploaded to the library.
Rachael Griffin, Head of Product Law & Financial Planning, comments:
“The launch of International Knowledge Direct forms part of our commitment to technical excellence and demonstrates our support for international advisers in an area of great complexity. The online library is packed full of technical articles covering a wide range of financial planning areas. The website is available free of charge and accessible round the clock so advisers can access technical material at their convenience."
Skandia International launches new product for expats in Spain
04 Aug 2010 12:00 Skandia International
Skandia International has developed a bespoke product for the Spanish market specifically designed to meet the investment needs of expats living there.
The Spanish Collective Investment Bond (CIB) is based on Skandia International’s globally popular suite of offshore investment products, but has been tailored to be precisely aligned with Spanish tax law.
The new Dublin-based product gives expat investors access to a wide range of funds and bank deposits. At launch, there are over 450 available funds across more that 30 investment sectors. These funds are fully compliant with Spanish investment regulations and represent a broad selection from over 50 of the world’s finest investment management companies. The Spanish CIB also allows investors to hold all or part of their portfolio in qualifying Euro deposit accounts and structured deposits.
The Spanish CIB can be denominated in Euros, Sterling or US Dollars and, in recognition that expats may hold existing funds in a variety of currencies, the product allows investors to make payments in any major currency after an initial investment of at least €37,500* is made. Investors can make top up investments of at least €3,750* and have the flexibility to take withdrawals as they require, or on a regular basis.
Michelle Andrews, commercial director for Skandia International, said:
“Developing and launching a proposition in line with Spain’s investment and tax regulations underpins our commitment to expats in this market.
“We have clearly identified interest from advisers and investors alike. The market still represents one of Europe’s expat hotspots – and the number of expats living there remains high. The demand for an investment solution which gives investors freedom and flexibility has remained constant, despite turbulence in the markets and currency over recent months.”
* or equivalent in other currencies
Regulation and financial stability paramount when it comes to QROPS
06 May 2010 10:30 Skandia International
Advisers say regulation and financial stability of a jurisdiction are key factors to consider when selecting a QROPs provider, according to new research by Skandia International.
Following events of the past couple of years, including the collapse of banks, the recession and the offshore review, regulation and financial stability top the list of things that advisers consider when selection a QROPS jurisdiction for their clients.
Investor protection was ranked third on the list of important criteria to consider and advisers should consider the protection available not only from the jurisdiction of the QROPS provider but also from the jurisdiction of the underlying investment – whether an offshore bond, bank account or local market product.
The availability of low or no inheritance tax ranked fourth, while the potential to receive a 30% tax-free cash sum allowance came in fifth. The requirement that the QROPS jurisdiction be English speaking and the perceived privacy of the jurisdiction ranked low on the list of essential criteria.
73% of advisers prefer to use Isle of Man or Guernsey as the jurisdiction for a QROPS with Hong Kong coming in as the third most popular.
Rachael Griffin, head of product law and financial planning at Skandia International, said:
“Pensions and therefore a QROPS are a long term investment and it is for this reason that it’s so important to look at the jurisdiction that the investment is held in. When making a decision on jurisdiction, a number of factors need to be considered such as financial security and of course the jurisdiction tax rules. For example it may be that the QROPS provider insists on a member being a local resident, or the particular pension rules of a jurisdiction insist on certain restrictions on investments.
“Like with any financial planning QROPS are not for everyone and each client should be assessed individually. Circumstances specific to each client such as age, current residency and future plans will all need to be considered before making the decisions to move into a QROPS.”
QROPS sales to increase over 2010
21 Apr 2010 10:45 Skandia International
Overseas advisers predict that sales of QROPS (Qualifying Registered Overseas Pension Scheme) products will increase, according to a recent poll by Skandia International. The research shows that 74% of advisers expect to write more QROPS business over the next 12 months.
QROPS are one of the financial planning considerations for UK expats who have already moved or are planning to move overseas to retire. QROPS can provide investment flexibility and currency options for clients who live abroad (or are planning to relocate prior to retirement). They are an effective way to consolidate UK pension assets gathered throughout someone’s working life in the UK and provide flexibility to allow retirement planning to accommodate their new lifestyle overseas.
Unsurprisingly, advisers cite the most common reason to recommend a QROPS is that income drawn from the scheme is not subject to UK tax. The wider investment choice allowed within a QROPS is the second most common reason that advisers recommend a QROPS while the lack of compulsion to purchase an annuity if the client holds their pension monies in a QROPS falls third on the list. Advisers also recommend a QROPS due to the fund not being subject to UK inheritance tax on death, although this ranks fourth on the reasons to recommend the product to qualifying clients.
64% of advisers said that an offshore investment bond is the most popular underlying investment for a QROPS followed by mutual funds (23%), stocks and shares (9%) and then cash (4%).
In April, Skandia International announced an exclusive tie up with QROPS company Concept, creating the new ‘Aurora Quantum’ which is one of the most competitively priced QROPS options in the market. The exclusive charging structure puts Royal Skandia’s offshore investment products at the heart of a portable pension product for UK expats.
Rachael Griffin, head product law and financial planning at Skandia International said:
“As expats continue to retire abroad, we’re seeing a growing awareness of QROPS and the benefits that this type of product offers those who are retiring outside of the UK, which may be why so many advisers are expecting to see an increase in the amount of QROPS business they write. A QROPS can be an appropriate investment for many expats living abroad and offers a level of flexibility. such as different currency options, not found within a UK pension scheme.
“Having recently linked up with Concept to offer a competitively priced QROPS it’s encouraging to see this level of anticipated adviser support for these schemes.”
Skandia International and Concept Group agree exclusive QROPS tie up
12 Mar 2010 12:15 Skandia International
Skandia International has today confirmed an exclusive tie up with ‘Qualifying Registered Overseas Pension Scheme’ (QROPS) company Concept.
Skandia International and Concept, a Guernsey fiduciary synonymous with QROPS, have agreed an exclusive charging structure which will put Royal Skandia’s offshore investment products at the heart of a portable pension product for UK expats.
Both companies have worked together to create a bespoke version of Concept’s Aurora product and the new ‘Aurora Quantum’ will be one of the most competitively priced QROPS options in the market. The launch charging structure carries an attractively priced £995 set up cost with equally competitive annual costs.
QROPS have been growing in popularity since the major change to pension legislation in the UK in April 2006 (A-Day) but many schemes don’t allow the flexibility required by internationally mobile investors. Utilising Royal Skandia’s investment flexibility and currency options within a QROPS will give people who live abroad (or are planning to relocate prior to retirement) a clear and easy way to consolidate their UK pension assets gathered throughout their working lives in the UK.
QROPS are potentially suitable for people who have UK accrued pension benefits and are permanently leaving or have left the UK. The Guernsey-based Aurora Quantum benefits from having no obligation to purchase an annuity and allows flexibility on benefit payments..
Rachael Griffin, head of product law at Skandia International, said:
“We’ve been looking at the QROPS market for some time as we have benefited from healthy inflows of business from a wide range of QROPS providers in recent years. Offshore bonds continue to be one of the most popular assets for QROPS and we continue to support this market. By teaming up with Concept to offer Aurora Quantum, a packaged solution with an exclusive charging structure, we have made this valuable option an easier choice for many expats.
“QROPS should play a major part in the financial planning considerations of UK expats who have already, or are moving overseas to retire. They provide flexibility to allow retirement planning to accommodate the client’s new lifestyle choice.”
Roger Berry, managing director at Concept Group said:
“Our Aurora product is already one of the market’s most popular QROPS, run on a cautious and prudent basis. Given the synergies that exist with Royal Skandia, I am in no doubt that this jointly offered exclusive solution, with its streamlined application process and economies of scale, will help us build on our already strong base.”
What are the main benefits of a Guernsey-based QROPS?
- No obligation to buy an annuity
- Flexible when taking benefit
- Ability to leave residue of fund to loved ones on death
- No limits on fund size
- Free of Guernsey tax
Gross roll up
On pension commencement lump sum
On benefit payments
On death
- Choice of retirement age
- Protection from currency fluctuations - not restricted to sterling
- Allows pension consolidation
- Designed and built for a more transient population
- Extremely wide choice of investments
- Removes pension from UK system
Skandia International notes to Editors
Skandia International specialises in offshore cross-border products and services for the Old Mutual and Skandia Groups. It brings together a number of regulated offshore businesses with bases in a variety of jurisdictions, and builds on an exceptional offshore brand developed over 25 years.
Skandia International currently comprises: Royal Skandia, Skandia Life Ireland and Old Mutual International (all of whom are offshore cross border manufacturers). Skandia International is also responsible for Skandia Life sales to local nationals in Finland.
Royal Skandia is the Isle of Man-based offshore arm of Skandia International. A leading life company in the offshore investment market, Royal Skandia offers a range of tax-efficient investment products aimed mainly at expatriates and international investors.
Skandia Life Ireland is the Dublin-based part of Skandia International. Skandia Ireland was launched in 2003 to provide European advisers with Skandia life assurance products following the Insurance Mediation Directive (IMD). Skandia Ireland is regulated in Ireland with authorisations in a number of EU/EEA countries.
Skandia International is a part of the worldwide Skandia Group, itself owned by Old Mutual plc. Old Mutual plc is an international savings and wealth management company based in the UK. Originating in South Africa in 1845, the group has a portfolio of businesses offering asset management, life assurance, banking and general insurance services in over 40 countries in Europe, the Americas, Africa and Asia-Pacific.
Old Mutual plc is listed on the London Stock Exchange and the JSE, among others.
This press release is for journalists only, and its contents should not be relied upon by financial advisers or customers.